Different level of risk in crypto currency trading

[Kelvinid]

The volatility feature of the market brings it into a higher level of risk when it comes to investment and much more for trading. As we can see, a lot of trading platforms currently existed in the market but crypto trading is a little bit far from them. If we could ask ourselves, why I should choose crypto trading if there is high-risk waiting for me? it simply because we are driven by our positive mindset, money, and the possibility of gaining more profit is higher also than the others. But the problem is that and mostly the case that it happens to newcomers, they have been losing a lot instead of making a profit due to their own lapses.

[Johnyz]

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?

Knowing how to deal with risk is one of the skills that you need in order for you to become a successful trader, and yes all the risk are the same but it increases the moment you decided to take more risk. Making plans and strategies can lessen that risk especially in trading cryptocurrency where volatility is very high. Don’t expect not to lose money instead prepare for it and have a back up plan always.

[Yatsan]

Risk is already a common factor existing in this industry for risks are always associated on anything you will do in this industry of crypto. I think the level of risks relies depending upon the coin for they have different price behaviors in the market and the changes on the prices on a span of time. Level of risks can also be associated upon the level of intellectual capacity of an individual to decide and familiarize himself on which crypto coin he will wish to trade. If someone is not that familiar into such coin and that coin was just a new one, then expect that it is a higher level of risk associated on that scenario compared to knowing your chosen coin for trading which is you are putting into lessen the associated risk for you are knowing how you will deal with such risk on that coin that is possible to be encountered along the trading process.

[chaser15]

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

No need for a banner that must show for every crypto as trading, either stocks or crypto is always risky. There are no safe trades as if everything is that easy, we are all success by now or basically, no trading activity at all.

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crypto on binance they displayed some warning as well which confused me quite a lot...

No need to be confused. Just keep in mind that crypto trading is risky no matter what coins you choose. Just because you don't see a warning or notice on that specific coin, it means they are on another level of risks of crypto trading.

Be used to see it from now on.

[samcrypto]

There’s a risk everywhere the only difference is the level of risk and if we are talking about trading cryptocurrency here, expect a high level of risk because you can lose money here in just a day if you make a bad decisions.

The volatility is normal in cryptocurrency, traders love that risk so they can pump and dump their token as easy as they could. There’s a big risk on a new project, and that’s your decision whether to buy or not, as long as you are willing to lose money then you’re already a risk taker.

[hahay]

Personally, even though I spend a large amount of money ready to lose but basically I don't want to lose everything, at least if we have management in this risky investment, as much as possible the money we invested back into our wallets with a bad estimate only partially or a few percent and the worst thing is to lose it all. So, the risks regarding the project and the exchange itself I think can be avoided, because as long as you only use reputable and trusted exchanges it is enough for you to minimize the risk, because the next step is back to your own skills.

[Shasha80]

Of course crypto trading has different levels of risk, depending on us choosing coins, trading features and the amount of capital used.
For me, these three things greatly affect the level of risk that must be faced. Suppose we select new coins with popular coins, of course
it is more risky to trade with new coins. Then if we choose margin trading features, of course there is a big possibility that we will lose
all our capital if we do not have good experience and knowledge in the world of trading. Therefore, if you are not professional traders,
avoid using margin trading features, just focus on using spot trading. And the last thing that distinguishes the level of risk when trading is
the capital we use, the more capital we use, the greater the risk we have to face.

[pankowri]

Risk is a component of the characteristics of the crypto world. There are several categories of risk pertained to in cryptocurrency. In this virtual world, the risk is spread at every stride. Risk of buying and selling. Risk on the scam in the market, risk in long term investment, and many more here. When you buy BTC that can be happened after buy, the price can befall. And the scammers are aware of stolen money from people.

[Xinarae*]

Margin trading is known for the ability to trade larger than the amount deposited. There is a lot of skill required or the risk is high. The meaning of margin trading is that a trader decides that they want to make a trade larger than the capital they have and looks to the platform to borrow these funds to open a larger Etherium position. look This leveraged margin allows you to make higher profits if the position goes in the right direction after the trade. However, the risk is that if the trade fails the amount of loss can be increased.

[Vispilio]

If you trade unleveraged, then the risk of ruin is only when the crypto currencies you are holding go to 0 or very close to 0, which is admittedly a considerable risk for many crypto assets.

The level of risk increases exponentially if you like to trade on margin, however, then you have to factor in both borrowing costs (usually taken out daily or 3x daily from your equity) and the liquidation price, which is calculated by both the leverage you employ + the exchange cushion (usually 2-10%), meaning the exchange lending you the margin will always liquidate you earlier than the risk of ruin price because they don't want to be stuck with the risk themselves...

[Tigerheart3026]

yes ur capital is risky for all of cryptocurrency. i don't agree it's an equal risk in all cases of alt coins. there are different risks in the different coins. btc,eth,xrp,tron and top few coins buy and sell risks aren’t similar in any shit coins. haven’t found this features in coingecko it’s very recent implementation?  

[xSkylarx]

One question I came across is if there are different level of risks for different cryptos?

Yes there is, some crypto are only driven by their hype and trend. A coin can be popular and good to trade today but after a week if it dumps hard then whales are gonna leave it then they find a different coin again then the cycle repeats. Some are loyal to their projects that even if it dumps, they are still ongoing for some years then make an update. That will become a trend to traders and their price will go up again. It's always up to you to DYOR before buying any crypto. There is always a risk to any crypto you buy.

[TitanGEL]

Risk is a component of the characteristics of the crypto world. There are several categories of risk pertained to in cryptocurrency. In this virtual world, the risk is spread at every stride. Risk of buying and selling. Risk on the scam in the market, risk in long term investment, and many more here. When you buy BTC that can be happened after buy, the price can befall. And the scammers are aware of stolen money from people.

The risks are forming in the area outside of your expertise which means that if you do not have foundation or basic knowledge on the type of investment that you're currently doing then the risks are high. The risks can become high or low depend on your skill and intellectual level. In cryptocurrency trading, at first yes it is risky especially if you are new in the mrket but that risks can be lessen through proper experience and learning. A lot of people are buying or putting money on a type of investment that they not fully aware or what we can a risky investments then they will blame whenever they lose the money that they put.

I do not promote or suggest to newbies to do leverage trading because of the risks and I think they should first gain a lot of knowledge and experience in spot trading first before they go in futures. As long as we have proper risk management, we can handle huge risks and maximize the potential upside.

[davinchi]

Each person has their own goals as well in the end, which means their actions are usually based on their own ideas of what is going on too. I believe if one person is trying to make a quick money and get rich right away he will not be acting similar to someone who is here who wants to just retire at age of 50 without working after that. These are all different things and that is why I believe they will also do different things as well.

Personally I believe there is a huge potential they could get together on the same middle ground and just focus on how to make most out of what they have instead of trying to overachieve best traders of the world but not just buy/hold/forget system neither. You could have like a savings account interest at banks for example, similar mindset for bitcoin could be found.

[cheezcarls]

Hi,

I have some experience in crypto trading (far from being a master though).
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.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.

[santiPOGI]

I don't know what level of risk in cryptocurrency you are talking about dude, just all I know is that once you decide to invest into
any of the cryptocurrency that means you already entered into a risk portion of trading as a trader here in this field of business.
Without any involve money it can't be called risk, in my assessment to this matter.

[bitgolden]

The biggest risk is doing something you are not ready at all. If you are not sure about what you are doing, you are taking a risk that is beyond any logic, you have to know what you are doing for the exact reasons and data points before you do it, if you are going into bitcoin with mindset of "I think bitcoin will be $20k, so I am going to buy now" without any other information in your brain, that is going to cost you a lot of money.

However if you end up with "I believe bitcoin will be $20k, because this will happen and trigger that which causes these which should have consequences of price increase" that would allow you to be a lot more ready for trading. So, in order to remove risk (or at least make it minimal) you have to make sure that you check under every single rock before you make a move.

[jrrsparkles]

Hi,

I have some experience in crypto trading (far from being a master though).
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.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.

Same level of risks but experience may guide people to tackling the risks we are facing. We shouldn't set to any coins when we are a trader because crypto is unpredictable and volatile so we need to keep ourselves busy with picking up the right coins, after every profitable trades.

[matchi2011]

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.

With such high volatilities this market have, each time you enter your position considered as risk. You are correct with levels of risk as there's none in terms of positioning as it's every traders knowledge that matters.

Whatever you directions you take you always needs to consider how you'll be able to take the piece of profits, your capabilities to anticipate the movements will be your advantage you have to keep enhancing it.

[crwth]

There are things to consider before you get to trading. Below are the most important parts.

• Know your risk - how much capital are you going to invest. Never invest rent money etc.
• Know your Market - is its derivatives? Is it a spot market? Futures? Etc. Then learn what you can do with it.
• Form a trading plan - never head on to battle without a strategy. The same goes for trading.
• Be emotionally ready - losses are inevitable, never hold on too much and have risk management

I think you need to be aware of what market you are playing to determine if you will take the extra precautions or not. It depends on you. There is a lot of resources that you could read so you could improve. Take charge of your knowledge.