Minimizing the risk- How much possible it is?

[sisule]

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know  it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

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[btc78]

Are we safe to say investing on both these coins are minimizing the risk

No, with my understanding of trading, investing in two altcoins isn't minimizing the risk, you can research on two altcoins and yet they turn out to be shitcoins. Investing in many altcoins raises the risk of losses because I don't trust altcoins diversification as they are so many and you cannot pick out the one that will be the right one for your investment plans.

I have got this site providing correlation of different altcoin against bitcoin- https://coinpredictor.io/altcoins

Can this site be trusted, do you think a trader can invest based on their predictions?

there are some types of trading and it depends on what we are basing here,if OP wants to be in Daytrading then that is really risky to Buy more than one altcoin but if he can stand for at least semi long term?in which he can afford to hold the coins when suddenly dump after being added to His folio?for me that is tolerable to Buy 2 or more alts for less risk,well this is how i see things because i am not really a trader as i am a Holder and don't want to make way into more risky like DayTrading.

[djgtr]

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know  it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

What's the best strategy to minimize here is with bitcoin all alone and I couldn't find any good picks on altcoins while it wasn't gaining good value for a moment. There's no potential increase on selected alts yet, and it doesn't showed any further growth even btc started to rise fews hours ago. That's very important to accumulate our btc balances and keep holding for several months, then you'll the results of your patience.

[Oilacris]

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know  it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

What's the best strategy to minimize here is with bitcoin all alone and I couldn't find any good picks on altcoins while it wasn't gaining good value for a moment. There's no potential increase on selected alts yet, and it doesn't showed any further growth even btc started to rise fews hours ago. That's very important to accumulate our btc balances and keep holding for several months, then you'll the results of your patience.

The reason why do people do consider on putting some hopes on alts because they cant wait too long or too impatient.

Its no surprise though yet we do have our own will when it comes to investment matters.Minimizing risk will just depend on the steps you would take.
If you lost due to mistakes then you do know on what would you do next.

[Darooghe]

The only way you will minimize your risk is by testing the hell out of your strategy over a significant sample size. Don't even think about dropping real money on this until your strategy has been proven to be consistently profitable. Your money management needs to be rock solid and compared to what most buy & hold guys do, you actually need a deeper understanding of timing trades. also another way to minimize risks is to not doing day trading as much as possible.

[Eternad]

Minimizing risk is by monitoring every now and then your portfolio and the market performance. While it is good to diversify. Know that we need to monitor ever investment we have. Successful Investing is about monitoring the risk, not avoiding it. Sometimes in those risk we take, the more chance we can earn. Just research and analyse whether those alts are worth risking for.

[FanEagle]

What's the best strategy to minimize here is with bitcoin all alone and I couldn't find any good picks on altcoins while it wasn't gaining good value for a moment. There's no potential increase on selected alts yet, and it doesn't showed any further growth even btc started to rise fews hours ago. That's very important to accumulate our btc balances and keep holding for several months, then you'll the results of your patience.

Actually once bitcoins start rising, most of the altcoins start descending onto the dip. This is the case only because people who already have their funds invested into such altcoins rapidly start moving their capital from the altcoins to bitcoins only to maximize their profits.

This indirectly leads to dump of those major altcoins and bitcoins keeps on the ascending graph. Once bitcoin stabilizes onto some peak than most of the altcoins start showing us some growth. In this situation, holding maximum capital into bitcoins would prove beneficial as it might give us some instant profits if we consider buying and selling simultaneously in the small price movements.

[jcpone]

I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

I definitely agreed to you sir, were Ethereum is not a shitcoin, it was one of the promising altcoins actually in the market of cryptocurrency.
And one of the most useful platform too in terms of every new project arises in this field of business of crypto as well. Sometimes, we need to be very careful in bestowing like this things here in the forum.

[pajak666]

Let's say; Coin A has a positive correlation of 0.89 against BTC price & Coin B has a negative correlation of 0.89 against BTC price.

Are we safe to say investing on both these coins are minimizing the risk; provided that I will have a good research on both these projects to ensure that these are not shitcoins? Ignore the fact that all coins without BTC is a shit (Note for bitcoin enthusiasts).

It does minimizes your risk but this is not as important as things like proper trade sizing or not deviating from your strategy coz of emotions. Correlation is huge anyways in crypto so if you stick to some simple rules like ETH tokens is just ETH on leverage etc. then you should be fine and not over investing in same concepts. Also important thing is not betting against yourself ! You might go ETH long and EOS short while they are aiming for the same market, e.g. steel industry in real life. Spreading between 2 companies in the same sector is actually quite good way of diversification.

[shield132]

                    ~snip
I was a part time trader (actually holder)
                    ~snip

Did you find that it wasn't beneficial? Cause for me that action is minimizing risks. I never use all moments, I only try and aim to use best ones or sometimes good ones and never judge myself for my actions when I profit by saying that if I wait a little more, I would profit much.
But I see what's your point, usually altcoins follow to bitcoin but there are some that are independent from it and that's a good moment. I wouldn't say it minimizes the risk but probably the profit you may get from one altcoin won't be high enough to cover bitcoin's loss and opposite.
It's hard task, I may do some research on that, worth to keep an eye on.

[dunfida]

                    ~snip
I was a part time trader (actually holder)
                    ~snip

Did you find that it wasn't beneficial? Cause for me that action is minimizing risks. I never use all moments, I only try and aim to use best ones or sometimes good ones and never judge myself for my actions when I profit by saying that if I wait a little more, I would profit much.
But I see what's your point, usually altcoins follow to bitcoin but there are some that are independent from it and that's a good moment. I wouldn't say it minimizes the risk but probably the profit you may get from one altcoin won't be high enough to cover bitcoin's loss and opposite.
It's hard task, I may do some research on that, worth to keep an eye on.

Its just a matter of choice on a certain individual if he can embrace risk or would completely get rid of it by just simply holding for too long.
Altcoins price doesnt correlate with Bitcoins price from time to time and as you said which is actually true that there are even times that
alts do increase on we do least expect and making out profits on it.It might not be enough to cover losses but all do varies on how big your position
or the money you have putted on.

[el kaka22]

There is minimizing the risk and there is minimizing the risk. You can literally never go into bitcoin and you will have zero risk losing money in this market, however your dollar will soon start to worth less and less over time so you are still in danger and that risk is just not coming from crypto anymore.

On top of that you can get in and be so safe and act so decently like have %1 stop loss and 1% profit and not move any other direction that you may end up maybe profiting slight bit but that's it, or lose slight bit but that's it. So, when you are minimizing the risk, you are literally risking more than you know. Money you didn't profit is also money you lost but people do not see "I could have made 300 more here and 400 more there" as losses as much as they see the normal losses.

[CryptopreneurBrainboss]

Once again, by relying on the site you highlighted on the OP you're putting your fund at risk by relying on an opinion from a total stranger, giving your financial advice through projects worth investing in based on their correlation with bitcoin which to some exact can't always be accurate at every price movement of the market.

For example their's this school of thought of Litecoin always profiting from the upward price movement of Bitcoin and from previous record, that have (mostly) been the case but after paying close attention to the Litecoin market last year, I noticed that wasn't always the case and I'm meant to believe that'll be the same fate with the correlation theory.

The cryptocurrency market is still highly influence by emotions so irrespectively of the strategy you're deploying to combat risk, you should understand that, the strategy can't be 100% accurate at all times. Nevertheless, since you're speaking on diversifying your investing, I won't recommend you concentrate on just cryptocurrency instead invest in other Investment vehicle that aren't correlated to bitcoin.

[TheUltraElite]

I definitely agreed to you sir, were Ethereum is not a shitcoin, it was one of the promising altcoins actually in the market of cryptocurrency.
And one of the most useful platform too in terms of every new project arises in this field of business of crypto as well. Sometimes, we need to be very careful in bestowing like this things here in the forum.

Look, its a subjective opinion. For someone who managed to sell ethereum at the proper time and make money it is not a shitcoin. For someone who was stubborn enough to hodl during a drop would believe it is a shitcoin. Thing is one can hold bitcoin for long periods of time and then sell at good profit but would not be the same with other coins.

Back to the OP, I think you should be careful like I said in my previous comment. You cannot trust anyone on this market and this I cannot stress enough. The site you are speaking of, may just be making up stuff and trying to pump some coin at the expense of another coin. Good luck making money from watching them.

[Bagaji]

You're diversifying for sure.

However, I'm not sure whether or not it's necessarily a good idea to invest in two coins that are completely opposites of each other. That could potentially mean that any gains in one of the coins can be offset by losses in another coin in your portfolio. I'd rather pick a sector which I think has potential and diversify within that sector.

Also, you're not completely eliminating the risk that one of the projects will go rogue. This indiosyncratic risk will always be there.

Your explanation is very perfect and it can simply mean that the person will be in lost. Op, relying on a site opinion is highly risky as against your investment as pump and dump group is not advisable since they are in to make profit too.

[sana54210]

Shitcoin is not about the price, its about the level of quality of a coin. You may have bought ethereum at 9 dollars and sold at 1400 dollars and you may call it not a shitcoin but I can tell you there has been a ton of people who bought nano at cents and then when it reached 30+ dollars they sold and they still think its a shitcoin right now.

You may also have bought ethereum at 1400 dollars and had to sell when it was 80 dollars and it still doesn't make it a shitcoin, there are a ton of people who bought bitcoin at 20k and had to sell at 3k and even they wouldn't call bitcoin the OG real coin a shitcoin neither. So, as long as a coin has good quality, they are not shit coin, irrelevant to the movement of that coin up or down.

[panganib999]

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know  it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

That's right because most of the altcoins tend to be a shitcoins. Don't trust any coins because the demand of coins will always based on the market. That's why always observed the happenings in the market and make a technical analysis about it for you to know your next strategies or steps. But if you're no into an altcoin, then focus on the most popular and reliable coin, bitcoin. But we're still under the process of holding and hoping that bitcoin will again reach a $10k like its price in 2017. Everything is risky, but we also need to grab the opportunity when it is certain or not.

[AniviaBtc]

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know  it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

That's not minimizing risk, the question is after you buy bitcoin in a lower price, until when you will hold it? Because everyone knows that market is very uncertain and bitcoin is very volatile. You should know that at first, and that's still risky if you buy bitcoin now. It is very hard to make a decision when you know that altcoins are not that effective to be used as an alternative to bitcoin. Some altcoins are shitcoins, that's why it is not easy to make plans and strategies. All you have to do is observed the price movement on the market, it will serve us your guide for you to make plans and do good decisions while waiting for the price of bitcoin to rise again. Everyone is waiting for that to happen, but let's expect the unexpected.

[bitgolden]

It might actually be beneficial in the stock markets as the markets there are not much volatile and hence the two correlated shares would always go in their opposite direction not in much value which might give you minimal risk but surety of profits.

But, considering this in cryptocurrency markets I do not really think we might be able to find 2 or more coins which are negatively correlated to each other because of the high volatility markets. You might end up in loss if you purchase 2 such coins because usually in cryptocurrency patterns, the graphs move almost similarly and once we enter the bull or bear markets, each graph starts moving similarly following the trend.

[wozzek23]

What you are talking about correlation is completely a new thing to me even I am into different asset trading for more than five years. Basically, to minimize the risk I just opt for reputed trading pair rather than going with new or unknown trading pairs.

Calculated risk is my favorite way of eliminating unnecessary risks associated with my trading. It means I will choose a signal based on how big the stoploss level, it will be having. When the stoploss is not within my affordable level, I will just skip that signal regardless of how much profit it will be promising or even it will be from reputed signal generating agents.