Minimizing the risk- How much possible it is?

[quality.crypto]

Lately, I am thinking of spending more time into trading. Until now, I was a part time trader (actually holder) looking into only a few top ranked coins. Now, I have decided to go deep and try to make some profit.

First you already go into next level, congratulations. Chance to win ( possibility ) is same 50 - 50 but by using management risk it will not giving you bigger profit but saving you from bigger lost. Most people avoid it because must doing calculation and fit it with their target and money, that wasting time. Protection is our priority, use it and profit is our prize.

Exactly, most of the experience will not bother about the risk because managing funds are always good in order to reduce the loss. So without calculation, it is impossible for a trader to make a profit, we need to restrict ourselves otherwise, we are going to lose a huge amount of money.

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[Dart18]

IMO, as long as I profit with bitcoin then I think I am fine with that.

Pairing is something that many newbies are making errors.
You pair BTC with an altcoin (not a stablecoin) then what do you really want in return? Do you want to pack yourself with more BTC or that altcoin which you have used for the trading process.
With stable coins too it is different.
Some do prefer USDT in profit for a lower risk, in fact no risk of volatility. Then some want to grow their wallets with more BTC for future exchange.

[justdimin]

I would agree that devilslayers comment is definitely one of the best I have ever seen in the bitcoin risk management topic, however even tho it is one of the best it still lacks a bit of "knowledge" parts of it, not that it doesn't talk about them but it talks about them in short terms instead of explaining them.

Nobody would really get hyped about this topic enough to write it but if you talked about all the risk management and what could be done you would probably write a 60 page novealla level book on the subject just to talk about how to use the proper functions at exchanges to lower your risk levels so I understand why nobody can, it doesn't worth it when there would be a total of 4 people who would read it, so what would the point. Excluding anyone doing that, I think next best thing is devilslayers comment.

[FanEagle]

Diluting your investment has always been a topic in investment but people forget that you should divide it into multiple sectors and not just multiple stuff in that sector. If you are 100% crypto, that doesn't mean that you could just have 100 coins and somehow you divided your money, or if you have 100 different stocks doesn't mean you are 100% dividing it. You literally have to put money into multiple different things to make up that difference.

Just to give an example, put it 20% on crypto, 30% on stocks, 20% on precious metals (gold/silver) and if you can even real estate if you can (doesn't matter if it is a small parcel in some god forsaken land just so it is cheap, because even that gains value), those type of diversification is important and not just diversification in one market.

[TheUltraElite]

Exactly, most of the experience will not bother about the risk because managing funds are always good in order to reduce the loss. So without calculation, it is impossible for a trader to make a profit, we need to restrict ourselves otherwise, we are going to lose a huge amount of money.

It is important to gain experience but it does not mean the risks will reduce. Managing funds is one thing but going broke and not having enough bankroll to spend with checks is a tough thing. For any trader readily available cash is important too. They want to take every opportunity at making money but then again they need to keep bankroll in check. So it boils down to how much risk they are willing to take and how many trades then are executing.

You may play the long game and work with smaller portfolio with a big capital. That is good for most traders.

[Innerpumper]

The good thing about trading is your own predictions. Although I cannot maximize the gains that I can from trading, I am properly minimizing the risk of big losses happening. So many predictions that are on the website and the channel (paid channel) makes us follow what they do, so we will never settle when they show the results of their profits. With its own predictions at least not add us into greed. Just enough to know where the trendline, support, resist, this is enough when we enter and when we take profit.

[bitbunnny]

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

[MWesterweele]

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to  hold or to trade it especially when the market is dump and dump.

[bitbunnny]

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to  hold or to trade it especially when the market is dump and dump.

Yes, decision making is another very important capability that some traders don't have. Especialy making decision under pressure and not to turn to panic and making decision fast and deficit. But that is also something that could be learned with time and comes with experience. So someone who doesn't know the market and how it's functioning and how to see a broader picture, who hasn't experienced loss usually doesn't know how to make right decision.

[Mumbeeptind1963]

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to  hold or to trade it especially when the market is dump and dump.

Yes, decision making is another very important capability that some traders don't have. Especialy making decision under pressure and not to turn to panic and making decision fast and deficit. But that is also something that could be learned with time and comes with experience. So someone who doesn't know the market and how it's functioning and how to see a broader picture, who hasn't experienced loss usually doesn't know how to make right decision.

To minimize the risk you should have enough knowledge about trading because when youre in the situation you will know what the right thing to do, but since some of traders choose to do overtrade because they want to take the opportunity to trade even they also lose a lot they still continue to trade. Although tthey win sometime but still the risk is always take over particularly without discipline in trading.

[maydna]

To minimize the risk you should have enough knowledge about trading because when youre in the situation you will know what the right thing to do, but since some of traders choose to do overtrade because they want to take the opportunity to trade even they also lose a lot they still continue to trade. Although tthey win sometime but still the risk is always take over particularly without discipline in trading.

Perhaps, if they know about how much they should use to trade and always follow their own rule, it will help them to reduce the risk. The risk will still there in trading, but the problem is sometimes we break our rule because we want to chase bigger profit. That will not be good if the market cannot move up and down so we can miss the chance to buy low and sell high. So far, the market still up and down, but in a few weeks, it seems the market still going down, and we don't know when it's over. But if we can manage the money, we don't have to afraid to face the risk because we know how to deal with that risk.

[ultrloa]

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to  hold or to trade it especially when the market is dump and dump.

Yes, decision making is another very important capability that some traders don't have. Especialy making decision under pressure and not to turn to panic and making decision fast and deficit. But that is also something that could be learned with time and comes with experience. So someone who doesn't know the market and how it's functioning and how to see a broader picture, who hasn't experienced loss usually doesn't know how to make right decision.

To minimize the risk you should have enough knowledge about trading because when youre in the situation you will know what the right thing to do, but since some of traders choose to do overtrade because they want to take the opportunity to trade even they also lose a lot they still continue to trade. Although tthey win sometime but still the risk is always take over particularly without discipline in trading.

In short you must know the coin or token you want to trade since if you do a random buys in the market then a chance for you to lose if you are not attended and we must be prepared when going to trade since the information regarding on the coin we want to accumulate is really helpful for us to earn on long term also in short term trades.

[madnessteat]

~snip~

Investing in altcoins is a very risky activity, no matter how it correlates to bitcoin. Things can change in an instant. I would advise you to learn more about technical analysis, as the market is a game on the probability of price movements. The market is controlled by a crowd, which is more focused on technical analysis, and the crowd is controlled by major players of this market.

[deisik]

There are a lot of factors that should be considering in order to lessen the risks in trading. First we must identify first what type of trader are we, are we passive trader or are we a active trader? By identifying that, we can knownwhat type of strategy that is applicable to use. Strategies of long term and short tern trader are not the same so it is better if we will know what type of trader are we

It mostly works the other way around

We can identify our stance (long or short term) based on actual strategies and approaches we use. This is what counts in the end, while the specific type of trader that we drift to is of no particular importance. We can be actively trading one coin in the short term, while passively holding another for the long term

Diversification is also matter and be sure that do not invest all of your money in just 1 coin

Diversification is meaningless with crypto. If you want to reduce risks (as this is what diversification essentially comes down to), simply buy Bitcoin and forget about altcoins

[sana54210]

IMO, as long as I profit with bitcoin then I think I am fine with that.

Pairing is something that many newbies are making errors.
You pair BTC with an altcoin (not a stablecoin) then what do you really want in return? Do you want to pack yourself with more BTC or that altcoin which you have used for the trading process.
With stable coins too it is different.
Some do prefer USDT in profit for a lower risk, in fact no risk of volatility. Then some want to grow their wallets with more BTC for future exchange.

That is a problem that many of the newbies will face because they see a lot of people profiting and they want to do the same but they do not realize that they can't make the same amount of profit or even same amount of % profit with the veterans of the market, those people have given months or possibly years to the market to figure out how things work, some of them came in here from years of forex trading experience and also gave years of experience to crypto and now they are good and it is normal that they may do stuff that looks like risky and people do not realize they are very risky because they are new and think that is normal but in reality those risks are less risky when you are a professional who became veteran of the market. That is really the dangerous spot.

[beerlover]

Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.

So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.

[Meowth05]

There are a lot of factors that should be considering in order to lessen the risks in trading. First we must identify first what type of trader are we, are we passive trader or are we a active trader? By identifying that, we can knownwhat type of strategy that is applicable to use. Strategies of long term and short tern trader are not the same so it is better if we will know what type of trader are we. The second is we should be prepared on unexpected situation because it is a game of probability where there are always chances of winning and losing.

We should also focus on our risk and management, it is the best way if we want to lessen the risks in trading. We should always have a plan before a trade where we can create tactics and specially cut loss strategy. Diversification is also matter and be sure that do not invest all of your money in just 1 coin. Spread it in 3-5 altcoins because it is the preferable diversification. We cannot totally remove the risks but we can lessen it if we really understand the market and if we know what we are doing.

Very well said. There's no way we can remove the risk upon our trade but what we can do is to reduce it. I like the idea of having a plan before make a trade, this can everything on our trade because if we have it there's no way that we can lose to our trading track.

Diversifying indeed was one of the best strategy to reduce the risk, I think it is not necessary to be positive or negative correlated with each other because stock market is different from the crypto market we know. Now in choosing where tokens to invest, top ranked coins would be perfectly fit to place your investment, don't think of investing in random coins coz that will only increase the risk exposure of your funds.

[Lecam]

Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.

So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.

We can minimize the risk if we try other coins to trade not only the top 10 you can try the other altcoins and you can trade it to make profit. Bitcoin is not good for everyday trade bitcoin can hold it in a long time. But many altcoins are good to be trade just do search and trade it so that every trade you can not lose money instead you gonna get profit on it.

[TheGreatPython]

That’s not going to minimize the risk you’re going to be taking in trading. I don’t even trust diversification in cryptocurrency, you’re buying a lot of altcoins that might not be making any sense later on. They might make your profit but a fall in the market will cause you loss that is much bigger than the profit you have made.

I would say that it is best for you to be stick to your long term investment maybe with bitcoin. Unless you’re going to be trading the top coins, like the top ten? I have seen people that tried diversification and invested in coins that are not even in the top hundred because they believed they are good but at the end they were disappointed.

[deisik]

Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.

So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.

We can minimize the risk if we try other coins to trade not only the top 10 you can try the other altcoins and you can trade it to make profit

Are you sure about that?

Because I'm not at all. As I see it and as all my trading experience tells me, adding more altcoins actually increases your risks, not reduces them. If Bitcoin is the top cryptocurrency in terms of reliability, adding anything to your portfolio less reliable than Bitcoin would only make it weaker, less resilient, robust and stable

You will be opening yourself up to more risks, which are inherent to altcoins. If anything, altcoins should be used as a profit generating device (if you are able to time the market), not as a hedge