Risk Management in trading cryptocurrencies ...??

[topbitcoin]

Both are right, because we can't predict when we will face losses and risk management (in case it is spot trading) we can do something that maybe will cause less price in ROI and we don't need first price to get our capital back or maybe take profit with it.

[Hypnosis00]

Both are right, because we can't predict when we will face losses and risk management (in case it is spot trading) we can do something that maybe will cause less price in ROI and we don't need first price to get our capital back or maybe take profit with it.

Risk management can be applied in all aspects of crypto, not only in trading alone.
What it makes so hard for beginners is how to manage it in a specific situation. I mean, we sometimes forget how it uses due to some factors. More often we are bothered by our emotions, it sometimes because of being greedy...

I tend not to agree that Risk Management will give us protection 100%. No, that certainly matters to the person who applies it their life.

[Btcvilla]

Both are right, because we can't predict when we will face losses and risk management (in case it is spot trading) we can do something that maybe will cause less price in ROI and we don't need first price to get our capital back or maybe take profit with it.

Risk management can be applied in all aspects of crypto, not only in trading alone.
What it makes so hard for beginners is how to manage it in a specific situation. I mean, we sometimes forget how it uses due to some factors. More often we are bothered by our emotions, it sometimes because of being greedy...

I tend not to agree that Risk Management will give us protection 100%. No, that certainly matters to the person who applies it their life.

I agree with you. Sometimes people who are very good at managing their finances without being taught to manage themselves and their emotions are also not balanced. Mental and emotional are really very important.. if we play trading with emotions and are ambitious, let alone greedy, I think many people fail because of that. They just lack patience.

[Xinarae*]

Risk management is one of the most important business ventures traders who are unable to manage their risks properly can lose everything by not reducing losses in a timely manner by keeping very large and very risky trades or by not showing adverse price changes in a timely manner. Although it is almost impossible for trading to consider all aspects of risk management it is important to control one's emotions and move forward with patience will help you manage the risks of your short term business.

[oHnK]

Risk management is one of the most important business ventures traders who are unable to manage their risks properly can lose everything by not reducing losses in a timely manner by keeping very large and very risky trades or by not showing adverse price changes in a timely manner. Although it is almost impossible for trading to consider all aspects of risk management it is important to control one's emotions and move forward with patience will help you manage the risks of your short term business.

I don't think this needs to be discussed again, because after all, risk management will never be separated from everything in life, especially related to investment. Everyone should have understood the concept of risk management, whatever investment choices we make, they all have risks. Risk is something that has not happened and has an effect in the future, just stepping left or right has a risk. Moreover, choosing the coins to buy and sell.

[Fatunad]

Risk management is one of the most important business ventures traders who are unable to manage their risks properly can lose everything by not reducing losses in a timely manner by keeping very large and very risky trades or by not showing adverse price changes in a timely manner. Although it is almost impossible for trading to consider all aspects of risk management it is important to control one's emotions and move forward with patience will help you manage the risks of your short term business.

I don't think this needs to be discussed again, because after all, risk management will never be separated from everything in life, especially related to investment. Everyone should have understood the concept of risk management, whatever investment choices we make, they all have risks. Risk is something that has not happened and has an effect in the future, just stepping left or right has a risk. Moreover, choosing the coins to buy and sell.

True, when it comes to investment then risk management is something should really be standard on where someone who do tend nor plan to invest will be considering on how he would handle up his funds or investment with those factors that should really be needed to consider because we know that investment
isnt something that you do just put and wait up for it to grow.Of course you would really be needing lots of time and effort to make it grown and also you should be aware that this isnt always talking about gains because there would be also losses and failures on where you should make yourself to be ready about it.

[john_nautica]

Both are right, because we can't predict when we will face losses and risk management (in case it is spot trading) we can do something that maybe will cause less price in ROI and we don't need first price to get our capital back or maybe take profit with it.

I personally think that risk management is an aspect that is difficult to execute accurately in trading, but still can be done in numerous ways. I acknowledge that there is no one standard risk percentage but depends on a situation and the amount that is being concerned about. Nevertheless, analysis and constant monitoring could definitely help.

[pawanjain]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

From what I have learnt through my experience in trading cryptocurrencies I can say that risk management is a must without which we are most probably gonna lose more over the period of our trading days. Whenever we plan a strategy we should always put stop losses and carry out the risk management.
Our aim should be such that for every 5 trades we should win at least one  or two trades which neutralize our losses.
This is where the risk to reward ratio comes into play. You can easily find out the proper risk to reward strategies on this forum and google and how to implement it on our trades.

[RealMalatesta]

You can easily find out the proper risk to reward strategies on this forum and google and how to implement it on our trades.

Yeah there are tons of strategies are available but most traders are simply going with what their mentors/friends suggest and that's why we do see most percentage of traders are with same kind or slightly modified strategies and the results from crypto trading is also almost similar regardless of our capital nor experience levels.

I personally think that risk management is an aspect that is difficult to execute accurately in trading, but still can be done in numerous ways.

The level of accuracy in your trading depends on multiple factors and the vital one out of them must be your efficient risk management. You can boost your accuracy over your experience error and trail method along with strict stoploss levels.

[TheGreatPython]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Yes, altcoins go down harder when Bitcoin goes down. And the thing is because Bitcoin is more stable than most of them. For that reason, when the market starts becoming bearish, a lot of altcoins traders sells their coins to invest in Bitcoin. That’s the same thing when Bitcoin’s value increases, some altcoins can increase more than Bitcoin.

A lot of them are easily manipulated, because they don’t have a large market cap like Bitcoin, so they won’t be as much stable, that’s why they will have much bigger increase. It’s just like what happened with Dogecoin this year, that’s a good example.

[lixer]

there are tons of strategies are available but most traders are simply going with what their mentors/friends suggest and that's why we do see most percentage of traders are with same kind or slightly modified strategies and the results from crypto trading is also almost similar regardless of our capital nor experience levels.

I guess it would be much better to go with something which is already tested by known people rather than innovating something or trying something which is completely new to us and for our friends and colleagues, right? I am also using few of most famous strategies because I got trained to make use of them and I verified them in real world market conditions when my friends were executing those strategies.

Adopting the strategy which is already known and tested also must be part of risk management. Fortunately, most traders are already into this without actually aware of what they are doing.

[wahyu wida]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Yes, altcoins go down harder when Bitcoin goes down. And the thing is because Bitcoin is more stable than most of them. For that reason, when the market starts becoming bearish, a lot of altcoins traders sells their coins to invest in Bitcoin. That’s the same thing when Bitcoin’s value increases, some altcoins can increase more than Bitcoin.

A lot of them are easily manipulated, because they don’t have a large market cap like Bitcoin, so they won’t be as much stable, that’s why they will have much bigger increase. It’s just like what happened with Dogecoin this year, that’s a good example.

right, the capitalization of bitcoin is very large, so to manipulate it of course requires a larger capital as well, different for altcoins, where it will be easier to manipulate this market. therefore we must be able to take advantage of opportunities as you stated

[Cherylstar86]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

In protection to your capital, you should have a smart decision in times of 100% pump for btc. Don't wait for another bounce because there's always a sad reality that altcoins pump was just temporary and not sustainable. When you see your money is at risk then don't wait for another lucky increase, eventually you'll realize that crash is starting to dominate.

[onecall123]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Yes, altcoins go down harder when Bitcoin goes down. And the thing is because Bitcoin is more stable than most of them. For that reason, when the market starts becoming bearish, a lot of altcoins traders sells their coins to invest in Bitcoin. That’s the same thing when Bitcoin’s value increases, some altcoins can increase more than Bitcoin.

A lot of them are easily manipulated, because they don’t have a large market cap like Bitcoin, so they won’t be as much stable, that’s why they will have much bigger increase. It’s just like what happened with Dogecoin this year, that’s a good example.

Everything depends of your education in trading. If you have no experience don’t do it. It's true that memecoin has performed this year massively, but playing with such memecoin are extremely risky. You can just sit back with bitcoin and relax with holding and spend your time on other things. Typically great quality coins give you great return. As long as you stick with your strategy you are OK to go.

[awik p]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Yes, altcoins go down harder when Bitcoin goes down. And the thing is because Bitcoin is more stable than most of them. For that reason, when the market starts becoming bearish, a lot of altcoins traders sells their coins to invest in Bitcoin. That’s the same thing when Bitcoin’s value increases, some altcoins can increase more than Bitcoin.

A lot of them are easily manipulated, because they don’t have a large market cap like Bitcoin, so they won’t be as much stable, that’s why they will have much bigger increase. It’s just like what happened with Dogecoin this year, that’s a good example.

Everything depends of your education in trading. If you have no experience don’t do it. It's true that memecoin has performed this year massively, but playing with such memecoin are extremely risky. You can just sit back with bitcoin and relax with holding and spend your time on other things. Typically great quality coins give you great return. As long as you stick with your strategy you are OK to go.

right, don't be greedy for the dreams that we will achieve. if we realize that we are not good at analyzing, of course investing in bitcoin will make us more relaxed. even if the price goes down, as long as we are able to be patient it will benefit in the future. I personally don't like to invest in coin memes, because it's like gambling

[Digital_Lord]

Yes Risk Management is very Important in Cryptocurrency Trading.
Mostly when Btc Pump, most of the altcoins pump and when btc dump, most of the altcoins dump, But sometime this happen reverse, so in this situation risk management id very important , always just trade from 3 to 4% your portfolio, so that if you loss some of your trades then easily you can recover, so always trade 3 - 4% your portfolio

[Furious 7]

there are tons of strategies are available but most traders are simply going with what their mentors/friends suggest and that's why we do see most percentage of traders are with same kind or slightly modified strategies and the results from crypto trading is also almost similar regardless of our capital nor experience levels.

I guess it would be much better to go with something which is already tested by known people rather than innovating something or trying something which is completely new to us and for our friends and colleagues, right? I am also using few of most famous strategies because I got trained to make use of them and I verified them in real world market conditions when my friends were executing those strategies.

Adopting the strategy which is already known and tested also must be part of risk management. Fortunately, most traders are already into this without actually aware of what they are doing.

Trying something new, of course, you have to risk first because you don't know what will happen with the new strategy that has been made, while by trying something that has been tested by many people, that strategy management already knows how the experience is and I think must be able to do what they want and at least we can adapt to our management and the market that is in any condition, therefore I think it is necessary to try and run it.

Honestly, I now see many tiktok videos that share trading strategies in crypto with large capital and how my management there can learn and adapt to my situation.

[Hamphser]

there are tons of strategies are available but most traders are simply going with what their mentors/friends suggest and that's why we do see most percentage of traders are with same kind or slightly modified strategies and the results from crypto trading is also almost similar regardless of our capital nor experience levels.

I guess it would be much better to go with something which is already tested by known people rather than innovating something or trying something which is completely new to us and for our friends and colleagues, right? I am also using few of most famous strategies because I got trained to make use of them and I verified them in real world market conditions when my friends were executing those strategies.

Adopting the strategy which is already known and tested also must be part of risk management. Fortunately, most traders are already into this without actually aware of what they are doing.

Trying something new, of course, you have to risk first because you don't know what will happen with the new strategy that has been made, while by trying something that has been tested by many people, that strategy management already knows how the experience is and I think must be able to do what they want and at least we can adapt to our management and the market that is in any condition, therefore I think it is necessary to try and run it.

Honestly, I now see many tiktok videos that share trading strategies in crypto with large capital and how my management there can learn and adapt to my situation.

Dealing with crypto does involve lots of trials and error because you would really be finding strategies which you do seems that it does give you advantage in terms of making profits.

Risk management should really be a default thing to be considered when making investment because you are at least aware on how you should allocate your capital on particular situations

not just putting up in one go without minding the risk will surely burn you out too early.If you do like to sustain yourself at least then better be minding off with this very important factor.

[breathlessz]

there are tons of strategies are available but most traders are simply going with what their mentors/friends suggest and that's why we do see most percentage of traders are with same kind or slightly modified strategies and the results from crypto trading is also almost similar regardless of our capital nor experience levels.

I guess it would be much better to go with something which is already tested by known people rather than innovating something or trying something which is completely new to us and for our friends and colleagues, right? I am also using few of most famous strategies because I got trained to make use of them and I verified them in real world market conditions when my friends were executing those strategies.

Adopting the strategy which is already known and tested also must be part of risk management. Fortunately, most traders are already into this without actually aware of what they are doing.

Trying something new, of course, you have to risk first because you don't know what will happen with the new strategy that has been made, while by trying something that has been tested by many people, that strategy management already knows how the experience is and I think must be able to do what they want and at least we can adapt to our management and the market that is in any condition, therefore I think it is necessary to try and run it.

Honestly, I now see many tiktok videos that share trading strategies in crypto with large capital and how my management there can learn and adapt to my situation.

Dealing with crypto does involve lots of trials and error because you would really be finding strategies which you do seems that it does give you advantage in terms of making profits.

Risk management should really be a default thing to be considered when making investment because you are at least aware on how you should allocate your capital on particular situations

not just putting up in one go without minding the risk will surely burn you out too early.If you do like to sustain yourself at least then better be minding off with this very important factor.

I think mistakes in analyzing are normal, where everyone does it, so we have to evaluate every mistake that will be used as an experience. Besides that, before we decide to transact risk management is needed to calculate how big the chance of getting a profit, is it in accordance with the profit that we will get. that way we will be comfortable to make transactions

[Xhong54]

The question on risk management is a difficult one because its all about risking your account, yet if you risk very little your gains will similarly be very small. The point is, you trade wisely. Don't risk too small or too much. Risk what you can lose comfortably