Different level of risk in crypto currency trading

[Hypnosis00]

Crypto trading is a high-risk level and I believe also that it is the same for any trading platforms.

Once we start trading, it is accepted to face the risk. I'm not sure if traders have to think about it first before getting into this field or just be thinking about easy money. No wonder why many traders have difficulties in making good trades because they are not yet equipped with knowledge and skill before then. If they consider themselves thinking of becoming a trader, they should also have to think about all the needed things, otherwise, it was an easy end for them.

[palle11]

Crypto trading is a high-risk level and I believe also that it is the same for any trading platforms.

Once we start trading, it is accepted to face the risk. I'm not sure if traders have to think about it first before getting into this field or just be thinking about easy money. No wonder why many traders have difficulties in making good trades because they are not yet equipped with knowledge and skill before then. If they consider themselves thinking of becoming a trader, they should also have to think about all the needed things, otherwise, it was an easy end for them.

No, I think most traders don't think about loss before they enter the trading business. They get more focus on gains than what they can loss while trying for gain. This is why they don't study money management. And if they study it, they don't practice it.t

[pawanjain]

The are different types of trading. Spot, Margin, leverage, Future and Options etc... requires less capital amount and gives the opportunity to win a big amount.
These types of trading also comes with a risk of losing all your capital and sometimes more than that.
This is why you see the alerts on some coins saying it is a high volatility coin.

[Xembin]

There are different level of risk in cryptocurrency trading in the environment. Trading your coins in a place that is not safe is a big risk to trader and it hard for such trader to make a good profit from the environment. Low quality is another risk of cryptocurrency trading that every trader must aware of before carry out their trading in the market. Try to understand the season is another risk of cryptocurrency trade in the market. Before trading your coins try to understand the market if there are customers who is looking for that product you are holding or not before supply .

[BlazingHashes]

This is my view of the level of risk
+ Spot: low
+ Trading the token from farming: medium
+ Future / leverage: high

Cryptocurrencies are a world of risk and adventure. I have /3 of my accounts since 8/3 this year, then x10 spectacularly in just 2 months, and resumed /2 recently

I think I'm really bad at greed management although I told my heart a lot that this is a financial adventure, the lost, is my own soul and real property.

[iamsheikhadil]

Actually the warning is meant that crypto currencies in general are highly volatile and change their prices very much every instant. Fiat and other stocks don't change in value so much. It's probably a warning for newbies who are investing huge amount that invest only what you can afford to lose! Else, it will be too bad a risk!

[bitbunnny]

The are different types of trading. Spot, Margin, leverage, Future and Options etc... requires less capital amount and gives the opportunity to win a big amount.
These types of trading also comes with a risk of losing all your capital and sometimes more than that.
This is why you see the alerts on some coins saying it is a high volatility coin.

Because of all these types of trading every trader has a choice. We can choose what suits us the most and especially what is in accordance with our apetite for risk.
Some traders are more self confident s and willing to risk more expecting also bigger profit.  Volatility is something we always need to have in mind and not risk more than we can take. Bigger risk doesn't necessary mean bigger profit.

[DoublerHunter]

^ For me, there are two tradings that have a level of risk. The riskiest in trading for me is day trading which is you need to monitor the crypto market 24/7 a day. The less risky is long time trading, which is I feel safe because you only have to do is wait the market becomes bullish and your profit was there. Nevertheless, when we talk about trading, it is expected that there is a risk. We should know this from the start because if you don't know how to manage risk it will end up a loss for you.

[Distinctin]

^ For me, there are two tradings that have a level of risk. The riskiest in trading for me is day trading which is you need to monitor the crypto market 24/7 a day. The less risky is long time trading, which is I feel safe because you only have to do is wait the market becomes bullish and your profit was there. Nevertheless, when we talk about trading, it is expected that there is a risk. We should know this from the start because if you don't know how to manage risk it will end up a loss for you.

Trading is totally at risk, regardless if that is day-trading or not.

I remember one of my friends asking it before, which is risky trading or holding? I answered it both of them are risky, why? Because in crypto space, in the crypto investment we can't assure of anything in here. Guaranteed less that we can make good money in trading or even in holding because of its nature. What it makes hard for this because of its volatility. Even an expert trader could also suffer losses, how much more for a beginner, and less experience.

[MCobian]

As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.

[maydna]

As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.

I would not advise using margin trading because the risk will be double than the usual trade. Without proper knowledge in trading, you will find it hard to follow the trend or the price, and you can make a wrong prediction. But if you still use the usual trading type, I guess that even if you buy bitcoin at a current price and the price is down, you can still profit later when the price starts rallies.

The bigger money you use in trading will give you a bigger risk, and you have a big chance to lose the money too. But if you can manage your money to trade, I think you can minimize the risk of losing the money, and you will get the opportunity to make a profit. So you need to determine how much money you will use in trading.

[SquallLeonhart]

One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

I sort of understand that you are trying to ask there will be any differences at risk levels between crypto investments and other investments. The simple answer that will be, 'no'. There is no big differences in risk levels in all investments from crypto investments. All the market are volatile and hence crypto markets are volatile as well and the level of volatility in cryptos may differ time to time but that is the basic measurement for the level of your losses may incur in your investment.

If you invest $1000, the maximum you may lose is the same $1000 even in leveraged trading. There will be no additional losses just because of you are opting for leveraged trading. But, losses may occur more rapidly in leverage trading than spot trading.

[CryptocurencyKing]

There is a risk in all forms of business or endevour with a currency value attached and very much crypto trading isn't left out. It's not surprising that traders have definitely got a lot of evaluation to do with regards to risk.
Risks on trading has got several spares. From your lot size, spread, trading position in the market, account size and more.

As a good trader, risk management is one of the vital steps you've got to develop and master. It plays a role in determining why you should enter a trade, when you should enter and exit and ensures, what lot size you should enter a trade with with respect to your account size despite the leverage at your disposal as it has a direct relationship with the commission you would be paying as well.

[iv4n]

What is missing is research! Ok you got some warning messages, why didn't OP try to investigate more about it? Maybe there're valid reasons for those warnings, maybe it's a shady project, but if you wish to know more you need to check it by yourself, you can't expect others to do the job for you!
Now I could check more about this specific project and to find out why it's flagged by some services, but I have no interest in doing that, I don't have interest in this specific project mentioned by OP! If you are investor, or wish to be, you need to DYOR, in the end it's your investment (money) and it will be your profit/loss!

[Yaunfitda]

There is always risk involved in crypto, that's why you are seeing that kind of warnings. And there's risk aversion as well, so it's really up to us on how to manage it. So personally, I don't see that there are different though, risk is a risk. The big question is how you are going to mitigate the risk? Do you have plans?

[Kasabus]

There is always risk involved in crypto, that's why you are seeing that kind of warnings. And there's risk aversion as well, so it's really up to us on how to manage it. So personally, I don't see that there are different though, risk is a risk. The big question is how you are going to mitigate the risk? Do you have plans?

Yes. Once you're into crypto trading, the risk will always be there. This is the reason why you should only invest what you can afford to lose because in trading, there is no guarantee if you will make profits most of the time. One mistake will surely left you empty handed if not being controlled. I don't think there are different level of risks. The only concern here is how you will take the risks and overcome it.

[justdimin]

There is nothing like 'being more volatile than the other', all of them, as long as it's cryptocurrency, is volatile. Last time I checked on eToro they are only trading a few of the top cryptos like Litecoin, Ethereum, bitcoin, etc. And these ones are not even as much volatile the smaller cryptos can be (they are volatile, but what I am trying to say is that they can't be easily manipulated by anyone, unlike the small ones that can easily be manipulated by whales).

So, investing in smaller market cap cryptos carries more risks than the cryptos with a huge market cap. Small market cap cryptos can plummet at anytime, and easily. So if there is any thing such as level to risks in trading cryptocurrencies, then I guess it's what I have just explained here. But all trades are risky.

[Pamadar]

As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.

Setting up plans and having a good insight in regards to types of trading that you'll going to follow.

There's always risk that  accompanied your investment from the first time you enter the exchange, but as long as  you know how to handle it and you are always ready in taking that level your chances to gain from that risk is also high.
Keeping yourself tied with patterns that you are following will make you profitable in the long run, you just need to learn how to manage it the right way.

[Silberman]

What is missing is research! Ok you got some warning messages, why didn't OP try to investigate more about it? Maybe there're valid reasons for those warnings, maybe it's a shady project, but if you wish to know more you need to check it by yourself, you can't expect others to do the job for you!
Now I could check more about this specific project and to find out why it's flagged by some services, but I have no interest in doing that, I don't have interest in this specific project mentioned by OP! If you are investor, or wish to be, you need to DYOR, in the end it's your investment (money) and it will be your profit/loss!

Unfortunately many come to this market thinking that money is just going to come to them without making any effort, they just want to invest in a coin, any coin, and then reap the rewards and we know things do not really work like that, the few that are successful investing in new coins are able to pull that off because they dedicate all their free time to read as much as they can about every single project they can find, and after looking at hundreds of projects they finally find one that is worth it and invest their money there and very few people have the dedication of doing something like that and that is why they fail.

[AakZaki]

As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.

You are right about this, spot trading will indeed give you a loss according to the amount of capital and your entry price on the coin you choose. If the price drops to 100% you still have hope that your asset can go up like the other initial prices.

However, it is different if you use Margin Trading, the losses will be greater and can even be affected by liquidity. Margin trading is only recommended for professionals who already understand trading. Don't even try if you don't know the basics. Whatever money is owned will be lost in an instant. Use a demo account if you really want to try it.