The risk of investing in cryptocurrency

[ViceOfBTC21]

Every smart investor knows that with every investment there comes unavoidable risk, so the investing rule #1 is: Never ever invest more than you can afford to lose.

However, the higher the risk is, the higher chances of profit are. Of course, the Bitcoin is way less risky than altcoins, however, Bitcoin and cryptocurrencies as a whole seem very risky compared to even Forex, which is much more predictable than crypto.

The more you invest, the bigger likely profit is, but if you are wrong, the losses are bigger as well.

What are your opinions in cryptocurrency and risk?

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[CristianOff]

You can only lose if you sell at loss. If you are at loss just hold the damn coins. If you cannot hold the coins it means you invested more than you can afford to lose so
deserve it.

I spoke with a trader who is involved in commodities. He told me Bitcoin and crypto in general is at the acceptable level of volatility. It's just traders with no experience or
traders that are professional on stock or forex only that complain about volatility. Crypto assets are fine as long as you know what you do

[CryptopreneurBrainboss]

My opinion on cryptocurrency and its risk revolves around not chasing the hype, we saw such practice during the ICO era and early this year when the IEO madness began. The "not selling at loss" philosophy can be misleading most especially when you have already made the mistake of Investing in worthless project while chasing the hype. I was taught to understand that there are good debit (good looses) and a perfect example could be selling off those liabilities disguise as coins (shitcoins) you hold in your wallet just because you're buying into the idea of not selling at loss. Most altcoins won't recover after a bear market and the earlier we Investors starts understanding this fact the better our investment decision will become and reduce the risk we encounter while investing in cryptocurrency.

Still on the risk in cryptocurrency (my opinion), we need to understand that some coins aren't worth Investing in although they might be the perfect project to engage in if you're into trading or wanting to engage in such. Making the mistake of Investing in such project (based on the fact, Investing has to do with a longer period of time) becomes risky since the chances of such project yielding project on a long run becomes minimum or zero.

[gantez]

Bitcoin and cryptocurrencies as a whole seem very risky compared to even Forex, which is much more predictable than crypto.

This forex part has my attention. I think forex trade too isn't that easy for a novice just as cryptocurrency or bitcoin isn't too for a novice. Both have their spotting light to lead you if you understand them. When it comes to technical, both can be predictable because it is same TA in the trading terminal.

So, we just have to deal with the fundamental or news like when a whale decision to throw in surprise without informing his tiny hodler neighbour 

[franky1]

1) only hoard coins that serve a purpose/have real utility
2) if the coins are not on your solely own private keys, the coins aint yours
3) buy low sell high
4) dont set a time deadline for profit. if you need funds back in a certain time dont invest it
5) dont put all your assets into one basket dont put your unique basket(s) into one gamble(one order price)
6) spread the risk but not your control.
7) dont invest via emotion. invest via planned decision

[Strufmbae]

you must set a goal, Know and calculate the return of investment.

Sometimes you  take a risk if you do not know what you are doing.
 Before Investing in cryptocurrency you must know how to read the chart the flow itself, the capability of the crypto you are into.
Inside and out for a win win competition of Income in Risk.

[aoluain]

There is a risk with investing in everything.

The risk with investing in cryptocurrency is that it is a relatively new
technology with a high percentage of owners speculating on its performance.

It has proven to be volatile in the past with Bitcoins biggest crash in 2017 - 2018.

It is known that there are many factors and events which have and will continue
to cause market fluctuations thus affecting the value of Bitcoin.

History

    December 17, 2017: Bitcoin's price briefly reaches its all time high of $19,783.06.

    December 22, 2017, Bitcoin fell below $11,000, a fall of 45% from its peak.

    January 12, 2018, Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of bitcoin depreciated by 12 percent.

    January 16, 2018: Bitconnect announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina
    issued a cease and desist order against it as it was suspected of being fraudulent. Bitconnect loses 92 percent of its value within days.

    January 26, 2018, Coincheck, Japan's largest cryptocurrency OTC market, was hacked. 530 million US dollars of the NEM were stolen by the hacker, and the loss
    was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.

    From 26 January to 6 February, the price of Bitcoin halved, and reached 6,000 US dollars.[citation needed] Additional negative news for the cryptocurrency market
    continued in the first quarter of 2018. The price remained low though the level slightly recovered in the first quarter of 2018.

    March 7, 2018, Compromised Binance API keys were used to execute irregular trades.

    Late March 2018, Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.

    November 15, 2018, Bitcoin's market capitalization fell below $100 billion for the first time since October 2017 and the price of Bitcoin fell to $5,500.

https://en.wikipedia.org/wiki/2018_cryptocurrency_crash

[ViceOfBTC21]

Bitcoin and cryptocurrencies as a whole seem very risky compared to even Forex, which is much more predictable than crypto.

This forex part has my attention. I think forex trade too isn't that easy for a novice just as cryptocurrency or bitcoin isn't too for a novice. Both have their spotting light to lead you if you understand them. When it comes to technical, both can be predictable because it is same TA in the trading terminal.

So, we just have to deal with the fundamental or news like when a whale decision to throw in surprise without informing his tiny hodler neighbour 

Sure, Forex isn't easy for novices, but still, fiat-based currencies are a lot easier to predict than crypto, while still being a lot harder than predicting stocks.

[ViceOfBTC21]

You can only lose if you sell at loss. If you are at loss just hold the damn coins. If you cannot hold the coins it means you invested more than you can afford to lose so
deserve it.

I spoke with a trader who is involved in commodities. He told me Bitcoin and crypto in general is at the acceptable level of volatility. It's just traders with no experience or
traders that are professional on stock or forex only that complain about volatility. Crypto assets are fine as long as you know what you do

There is possibility that Bitcoin price will never come back that high, so yes, it's possible but highly unlikely that your money is lost forever.

[electronicash]

You can only lose if you sell at loss. If you are at loss just hold the damn coins. If you cannot hold the coins it means you invested more than you can afford to lose so
deserve it.

I spoke with a trader who is involved in commodities. He told me Bitcoin and crypto in general is at the acceptable level of volatility. It's just traders with no experience or
traders that are professional on stock or forex only that complain about volatility. Crypto assets are fine as long as you know what you do

There is possibility that Bitcoin price will never come back that high, so yes, it's possible but highly unlikely that your money is lost forever.

BTC will always rise. Its been proven since time so if you are not going to sell that means your BTC stays as is but value can be more than the previous years. That's less risk. Unlike with USD in forex, it will just be what is it unless you trade successfully to a pair.  You'd have to do the work to profit and if you are not that god in reading those indicators, the riskier it can be.

[TIDOVEE]

The risk in crypto currency is still quite minimal, it may take more effect on greedy,less patient  and less sensitive people.
You need to study crypto currency very well read and browse as much as possible. Those who went ponzi of crypto currency with trading companies will face more risk if they are too greedy. They will keep promising their investors even when they could do nothing to the market price.

[FaithInCrypto]

Every investment involves risk so it depends on the person how much risk he/she can accept. I agree with what others had said above that if you sell at a loss then you can only blame yourself since it is you who sold it at a loss, it is better to wait patiently and believe in what cryptocurrency you bought. But if you bought a coin that you think is only going down every time then it is good to decide to let go.

[Linkkoin]

As well one should consider one important thing - some cryptocurrencies had been invented as a mere tool, not a speculative investment. Therefore you might buy some very promising crypto at $100 level, but it would turn out it is doing fine with its blockchain and meeting its goals when its price is relatively stable at $30s.

Of course, if we are speaking about risk and profit ratio - pump and dump schemes are a good example of that. Depending on the moment you enter such scheme, you may make a few hundred percents of the investment, or spend money for a worthless token. Btw. P&D is banned on stocks for a long time by now, but not on cryptocurrencies.

[Shimmiry]

The risk in crypto currency is still quite minimal, it may take more effect on greedy,less patient  and less sensitive people.
You need to study crypto currency very well read and browse as much as possible. Those who went ponzi of crypto currency with trading companies will face more risk if they are too greedy. They will keep promising their investors even when they could do nothing to the market price.

Though we are approaching an era of innovating technology, it is still possible that the crypto itself is a risk. How? Remember that the only thing that runs the cryptoccurency is the internet and its cloud. There are a lot of recent news of a possibility of having war (though had been on cooldown, we never know.), there are percentage that holds the possibility the whole wide internet would've been affected. And investing most or even a part of your money in it is like sending your money to the moon and only had access with it through mobile apps, in which the mobile apps is the internet and moon is the cloud, and without any of it, not a single penny would comeback onto your investments.

[Kakmakr]

If you split your whole investment Portfolio into 3 different catagories, namely : Low Risk / Medium Risk / High Risk, then Bitcoin would have to go under Medium Risk and Alt coins should go under High Risk.

You know, when you go out and you bet on gambling, you set aside a bunch of money for your entertainment and you accept that there are a high probability that you might lose it all, but you manage that risk, by doing some research and then finding the site with the lowest house edge and gamble that money there, with a higher probability that you might lose less.

Doing some research will help you to time your Bitcoin trades by buying at the correct price point and buying "low" and then selling "high", reducing your risk on investments in Bitcoin.  

[XZERO1]

Investing in all assets has some degree of risk one way or another, but cryptocurrency specially altcoins for instance has just more risks than a stock that is for a known reputable company.

It's all mainly because cryptocurrency market as whole still has a long way to go to get the liquidity that is needed to become less risky, if the day comes that the crypto gains the same marketcap as gold market for example crypto investments could be way less riskier.

[USBitcoinServices.Com]

You can only lose if you sell at loss. If you are at loss just hold the damn coins. If you cannot hold the coins it means you invested more than you can afford to lose so
deserve it.

I spoke with a trader who is involved in commodities. He told me Bitcoin and crypto in general is at the acceptable level of volatility. It's just traders with no experience or
traders that are professional on stock or forex only that complain about volatility. Crypto assets are fine as long as you know what you do

There is possibility that Bitcoin price will never come back that high, so yes, it's possible but highly unlikely that your money is lost forever.

It might be a matter of time for bitcoin to reach another all-time high, we have seen passed 2 years after the last all-time high December 2017.  The halving is coming and that event can trigger another move in high price!

[Alice Nuttal]

Well, I realize the risk and I am ready to take it. I never use the money needed to cover bills or to pay for my child’s education, but I invest in crypto permanently.

[charlie137]

if its an open source project - it should not be an issue to do a deep review. i noticed that majority of the scene not paying attention to what should be the very basics. most of the topic reddit is about the market. but source code is what developing the market/price at the first place, then you have the community utilizing that code. and if first two are doing okay - traders finalizing the chain of basic project flow. they say market trends and etc - i see release cycle. as an example - upcoming stuff like taproot and more. another good example - ltc price and their ln deployment. not really following, but eth is still something because they riding hip PoS wave  so by just researching a little around the code you can minimize your risks dramatically. did i missed anything?

[OasisDre]

We have many impatient investors that are too afraid of everything, the real truth about crypto is there is always time to make profit, you only lose when you sell at a loss, there are opportunities in every corners of crypto space, just don't put your eggs in a basket and use diversification instead