How to understand risk in crypto

[Twinscoin2017]

It is really easy to understand risk on crypto. We all know that crypto is unpredictable and it is known as the most high volatility market that can make us gain or loss depending on our own way of understanding into it. So i think by simply looking at the market that is high on volatility we can maybe say that crypto is really risky.

[Astvile]

It is really easy to understand risk on crypto. We all know that crypto is unpredictable and it is known as the most high volatility market that can make us gain or loss depending on our own way of understanding into it. So i think by simply looking at the market that is high on volatility we can maybe say that crypto is really risky.

Understanding is the easiest part but taking the risk is what they/we cant take easily.Only fiew low iq people cant understad the risk of a thing they are going in or just simply they dont care about it.

[jakoylantern]

For me, to understand risk in crypto first, you should know about cryptocurrency especially in bitcoin that the price is very fluctuating and if you invest some money you should do your studies about this cryptos and make sure spend some money that you can afford to lose. Also, there are some many things to consider to understand the risk in crypto that only depends on what will you choose.

[Maxon111]

Types of risks
Market
These risks are directly related to the asset.
Nonmarket
Situations that may arise in the world and locally provoke losses.
Systemic
Risks that threaten the whole of cryptoeconomics.
When you invest in cryptocurrencies, you need to understand that the value of any asset mainly consists of community faith in a bright future, and when any information, news, settlement or bans at the government level affect the community opinion, the likelihood of its occurrence is in doubt, which leads to community frustration and loss of faith in this brightest future, and then this share of expectations, which formed the price, is blown away.

[Maslate]

The higher the value, the higher the profit and the higher risk.

In general investing in crypto is a high risk investment, it doesn't matter how high the value is.
Even if you invest in solid coins, you are still at a high risk, just like for example, ETH made an ATH at above $1,000 and people invested because it's the best coin in the altcoins market, but it falls even fall below $100 and that's a big loss for whoever invested it at above $1,000, so that says how risky investing is.

[blue_nexus15]

Investing in cryptocurrency has a very high risk because the price is very fluctuating. Many experts are sceptical about bitcoin as a major investment because of the limitations they can analyze.

Those are the minimum things to step into this market. cryptocurrency is an open market that is not strictly controlled. This has a great impact on the value and effect of the community and vice versa. The value of bitcoin and crypto are marketed under freedom. For me, when you understand, risk is also an opportunity. Take advantage of it or throw it away. That is everyone's choice.

[marine4u]

There is a lot of risk when investing in the cryptocurrency market, which is the way many people think when they invest in this market. To limit investors' risk, learn carefully about basic trading methods, security and deep research on coins that you want to invest to minimize your failure. Referring to many sources to make timely decisions is also a factor that should be considered.

[cered]

In reference to current bitmarket situation - nobody guarantees that your investments and your money are safe. This is one of the examples of how risky the cryptocurrency market is.

[matt7]

I think risk is inseparable part of every investment, even if you are really into cryptocurrencies and fully informed about it, there are so many factors which could be out of your control, for example crypto exchange BitMarket, suddenly closes down because of ‘loss of liquidity’ we will never know how much truth there is, maybe it was just a scam

[kewlia]

yea crypto is risk, somany crypto have in the world. but we are don't know about all crypto. frist we need to know about crypto and choice the original crypto and invest. i think if we are select any wrong crypto and invest, then we can lost every thing. so it is good point for all bitcoin holder that select right crypto. just we need to follow toper good quality crypto and invest then we can get gainer in future.

[cocoadreamboy]

********************NEWEST UPDATE*********************
Ok bitcointalk! I have been hard at work over this last week. I have just put the finishing touches on my site!

I will be posting a new topic soon about how to identify pricing bottoms by utilizing the creation cost. It needs a couple more revisions, but it will be ready today or tomorrow.

Here is the link to my site again:

https://www.amsinger.org

As always I love your opinions and criticism. You need friction to make fire

Aaron

P.S. The next client research will be covering the price volatility increases when bitcoin is high above the creation cost.

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[erricducducan26]

Relevant topic. Some people come in crypto and start complaining bout the loses. Learn the market and the risks first before investing.

[Msworld83]

risk management is a must know in crypto but may are just in for the cash and quick money which end up in lossing everything , this is actually a good topic to learn from but in every day activities by crypto we learn each day but the little you know about cant be gone any day but will definitely be a useful one.

[ghost424]

********************NEWEST UPDATE*********************
Ok bitcointalk! I have been hard at work over this last week. I have just put the finishing touches on my site!

I will be posting a new topic soon about how to identify pricing bottoms by utilizing the creation cost. It needs a couple more revisions, but it will be ready today or tomorrow.

Here is the link to my site again:

https://www.amsinger.org

As always I love your opinions and criticism. You need friction to make fire

Aaron

P.S. The next client research will be covering the price volatility increases when bitcoin is high above the creation cost.

*******************************************************

*****************UPDATE*******************

Thanks so much everyone for your opinions and views!

I am setting up a complete redesign of the site, and I will be back in around a week with all new research and probing bitcoin questions.

The site will be down while I make all the upgrades and rebalance the scales.

Bitcointalk is one of the few places where you can go to meet crypto people. I am honored to speak and share my data and views with you all!

Love and hard work,

Aaron

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Here is an overview of how to find and UNDERSTAND your risk while investing in crypto. If you want to see how it works click this link:



I have previous posts on here explaining an optimal entry point based on fundamentals on Feb 7. This is an explanation of May 2 to May 27.

Creation Cost - The variable cost it takes to create a bitcoin

On May 2 BTC risk hit its lowest since February. BTC was 15.1% above its price floor This is a rare and likely profitable situation. The price floor represents the price at which whales start buying due to the natural cash flow of cryptocurrency. It represents the point of strongest buying capability in the market.

On May 27, after the 59% price spike, the risk level increased to 55.5%. The price had virtually no support and due to the high price every miner and holder with any awareness of risk levels was selling and not holding.

I created fundamental analysis in order to provide my clients the information that they need to measure risk and understand the crypto market. With the fundamental price floor you know automatically if the price is low or high. $3000/BTC was INCREDIBLY high 4 years ago, $3000/BTC now is a mortgage-your-house steal. With price floor and cash flow analysis my clients know when the market is high and when it is low.

I truly hope that you find this information useful to you. I made this because of the pain I felt in Nov 2018. I needed to know why it didn't go to zero, and I found the price floor.

Aaron

Helpful Links:

Understanding the risk in Crypto might take some time if you have just started Cryptocurrency recently. Users wont be able to understand it completely if they do not know what technology is being used and how the Cryptocurrency Industry works. There are always risk involving personal investment. Investing is already a risk if you do not know where will the money go. We have to be careful creating decisions because a lot of users are already losing big amounts of money due to carelessness.

[Natalim]

risk management is a must know in crypto but may are just in for the cash and quick money which end up in lossing everything , this is actually a good topic to learn from but in every day activities by crypto we learn each day but the little you know about cant be gone any day but will definitely be a useful one.

Everyone should think of the risk and the reward in crypto, it cannot be focus on the reward alone as that would surely make us fail investing here.
When we know the risk, meaning, we understand how this works and since since it's a high risk, we should know how to deal with this kind of high risk.

As for me, I don't put a lot of money in crypto as I know I could lose a lot here if I fail but  when I earn, I think I wish I could put more, but realize I should not because that's some kind of greed in me will make me fail if the opposite outcome happened.

[Gibreil]

Crypto itself is risky. But understanding this, simply educate yourself before engaging to avoid disappointment and to ready your self that it is volatile and change is inevitable. You know, in a war before you join the battle you need preparation and be well equipped. Just like here, you have to learn to deal with your emotions. Being emotional will not take you long, over braved might lose what you have. Understand first the word risk, it is an act that might happen with uncertainty.

[Ioann11]

Have you ever thought about the risks of investing and how to reduce them? So, no matter in which field you are involved, it is important to understand that any business is associated with certain risks. This is especially true of investing, that is, the investment of your savings in specific assets. It is important to note that whatever financial instrument for capital increase you choose, there is no 100% guarantee against possible losses. Moreover, the attitude to various kinds of investment risks largely depends on whether the investor receives income from his investments or remains at a loss. That is why every investment person should definitely understand the subject of investment risks.

[JohnBitCo]

Before investing in bitcoin know the consequences first. Every investment has a high risks and ready for the volatility price of bitcoin in the market. Expect the unpredictable flow about the price of crypto.

Investing in bitcoin is the most risky investment because of the volatility nature of bitcoins and altcoins. If you are willing to invest in crypto you should have some holding power because most of the time we buy the bitcoins and it prices move further down. It is difficult for short term investors to survive in this market, but if you come here for long term then there should be no problem for you.
In the long run, the prices will move up.

[krb91]

When judging the risk associated with investing in BTC and cryptocurrency, one important factor to consider is duration of the investment, "how long do you intend holdimg your cryptocurrency?". Provided blockchains dont become vulnerable to some hack from a quantum computer, the risk associated with investing in cryprocurrency long term is almost 0 in my opinion. Look back five years ago. Imagine such exponential growth happens again.

[Nellayar]

Profit and Risk are directly proportional to each other. The higher the risk, the higher are the chances of profit. Since bitcoin & crypto are volatile in nature, both profit and risk are high. You can gain quick money and lose all money if you are not careful in crypto and trading.

This is not an educated statement. This statement is false.

If I am walking on the edge of a cliff my risk is high, but I have nothing to profit off. You are promoting nonsensical and dangerous views of "investing", and I am very inclined to slap a:

THANK YOU PAID TROLL

All caps warning on this.

If you want true information about risk, check out my site:

https://www.amsinger.org

Always a pleasure slapping trolls,

Aaron

Lol. He had also a point. The thing is, you don't want to accept his views about risk and profits.

We can say that they are complementary. Meaning to say, they are existing with each other. Profits are dependent on the risk. If we risk, we get profits. If we have profits, we risk something.

You would never become a winner unless you bet, that is like a gambling.