Risk Management in trading cryptocurrencies ...??

[zanezane]

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

If you aren't knowledgeable and wise with your trading, even if you risk a small amount when trading, it doesn't guarantee that you will gain a profit let alone a small profit. I say that assess yourself first before going in trading, try to assess your patience, risk tolerance, experience and knowledge before going to trade.

[Questat]

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

If you aren't knowledgeable and wise with your trading, even if you risk a small amount when trading, it doesn't guarantee that you will gain a profit let alone a small profit. I say that assess yourself first before going in trading, try to assess your patience, risk tolerance, experience and knowledge before going to trade.

nevertheless, it is a sort of trading preparation and if we don't want to lose our funds because of our ignorance and market NO-HOW, it is a must to acquire before to start. We have to remind ourselves that there is a joke in trading and a simple mistake will bring you huge losses or worse.

Risk management could be hard to understand how it helps us but as we are in a crisis and troubled, we can appreciate it much more what we can imagine. It just needs to work on it.

[TheUltraElite]

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.

Someone who does not wish to risk money in this field, should stay out of the field. Trading is not a job that gives you a guaranteed income which would be a day job but a risk-vs-reward scheme. Keeping the exception of professional traders aside, because I doubt how many of those actually exist.

Don't risk too small or too much. Risk what you can lose comfortably

True, but to be fair most people tend to risk more as time passes because they can see older opportunities going away and they dont want to miss out the next time.

I say that assess yourself first before going in trading, try to assess your patience, risk tolerance, experience and knowledge before going to trade.

Best way to do that is by trading itself. Maybe one can go for dummy trading challenges for getting an insight into the market and how it works, how to manage capital and risks.

Remember that risk is an inherent part of the game. To be able to make decisions to reduce the risks is the sign that you are doing it right. For that, one should make sure not to put all their money into crypto. You need to have backups to keep you afloat during bad times on one market. This is not a sign of being a no-coiner, but a diligent investor.

[horrifiedx1]

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

If you aren't knowledgeable and wise with your trading, even if you risk a small amount when trading, it doesn't guarantee that you will gain a profit let alone a small profit. I say that assess yourself first before going in trading, try to assess your patience, risk tolerance, experience and knowledge before going to trade.

nevertheless, it is a sort of trading preparation and if we don't want to lose our funds because of our ignorance and market NO-HOW, it is a must to acquire before to start. We have to remind ourselves that there is a joke in trading and a simple mistake will bring you huge losses or worse.

Risk management could be hard to understand how it helps us but as we are in a crisis and troubled, we can appreciate it much more what we can imagine. It just needs to work on it.

right, risk management is very important so that our capital does not run out in one transaction, because there are still many opportunities to win the next transaction. in this case we can allocate what percentage of the risk level for each transaction, so that if our losses have entered the target then we have to cut losses, and wait for the next opportunity to open another transaction

[Mistafreeze]

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.

The cryptocurrency market works totally different from all other financial markets with so many factors responsible for their trends. The general alt coin market most time, always respect the rise and fall in Bitcoin maybe because all other development and interface is found and built of Bitcoin foundation which makes all other coin to respect that fact.

Respecting risk management in crypto is very important to traders. It can guide one from future loses if enough preparation is made. The crypto market by is very volatile compared to other market with lesser volatility. This is why losing funds in crypto is very easy and certain to making profits which can easily be lost if care is not taken. Many investors had lose huge funds in crypto because of lack of knowledge to know when to take profit and when to leave the market.

[milewilda]

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

If you aren't knowledgeable and wise with your trading, even if you risk a small amount when trading, it doesn't guarantee that you will gain a profit let alone a small profit. I say that assess yourself first before going in trading, try to assess your patience, risk tolerance, experience and knowledge before going to trade.

nevertheless, it is a sort of trading preparation and if we don't want to lose our funds because of our ignorance and market NO-HOW, it is a must to acquire before to start. We have to remind ourselves that there is a joke in trading and a simple mistake will bring you huge losses or worse.

Risk management could be hard to understand how it helps us but as we are in a crisis and troubled, we can appreciate it much more what we can imagine. It just needs to work on it.

right, risk management is very important so that our capital does not run out in one transaction, because there are still many opportunities to win the next transaction. in this case we can allocate what percentage of the risk level for each transaction, so that if our losses have entered the target then we have to cut losses, and wait for the next opportunity to open another transaction

Dont go all is really included with that risk management factor which people should really be minding off from time to time because when it comes to that word alone then it is already
including fund management, decisioning management, emotional management, analysis management and other since you are particularly dealing on something risky due to volatility
which you would really be needing to sustain yourself and on the way on how you do handle up on different situation because market is unpredictable and does have random movements.
So you should be aware and be prepared for that most of the time.

[coiner-88]

I have seen that when bitcoin is down there are some altcoin hold their position and these ventures are exceptionally solid in help. The base instability is the best climate for learning the exchanging yet the medium unpredictability can cause enormous changes if the cash the board is disregarded by the broker.

[DibiaVxosis]

In trading risk management is key, no matter the knowledge you got or experience achieved, without risk management you gonna crash someday so it's better to always apply risk management. Learn how to possibly manage risk, i can recommend 20% of the whole account size used for trading, 3 - 5% to me is a very good risk management but too small for trading and i will call that over management, and one thing about it is that it will fetch very little profit.

[Lanatsa]

In trading risk management is key, no matter the knowledge you got or experience achieved, without risk management you gonna crash someday so it's better to always apply risk management. Learn how to possibly manage risk, i can recommend 20% of the whole account size used for trading, 3 - 5% to me is a very good risk management but too small for trading and i will call that over management, and one thing about it is that it will fetch very little profit.

You are definitely right!

Risk management is a must but to know that it is already included about risk management about experience because you aren't experienced if you don't know this so its just been part of it.

It is one of the most needed for you to sustain yourself in trading because we are dealing with moving prices and it would be more harder if you are really trading actively.

For you to sustain then you should know on how to handle your capital and make more worthy trades.

[Caldear]

Trading cryptocurrency is highly risky and speculative. You should ensure that you fully understand the relevant risks before you start trading, analyze market fluctuations and trend graphs, use various indicators to analyze price trends, and learn to become an investor with rich financial market knowledge before you start investing. Controlling market sentiment caused by market fluctuations and learning to stop loss and profit in time can help reduce the risks caused by the violent fluctuations in the price of cryptocurrencies.

[xSkylarx]

That's just the best format to use as a trader because it gives you capital security and dosent put you in pressure of avoiding not losing your money. So risking 3-5% should give you a 1:3 RR, more or less depending on what you set for yourself.

Agreed, this is the best RR for me or 1:2, but it still depends on the capital, and most of the time, risking 2% of your capital is best. However, we all have our own preferences; you should find your own Risk Management system that works best for you. Just a note, don't be greedy and book some profit and leave, just get some meat from the market and you're set for the day

[Nathrixxx]

Btc is the leading crypto and stand a chance to dictate and a determinant for others, it will be so interesting if your investment is highly vested on btc while a smaller percentage on alts.

Any dump or pump on btc is incomparable to alts, it is occasional on btc, while other crypto can be frequent and drastic in term of fluctuations.

[TheUltraElite]

I have seen that when bitcoin is down there are some altcoin hold their position and these ventures are exceptionally solid in help. The base instability is the best climate for learning the exchanging yet the medium unpredictability can cause enormous changes if the cash the board is disregarded by the broker.

This is a wrong conclusion, maybe correct in some fiat markets but not applicable in crypto markets.

Majority of altcoins that exist do not have any basis of running anyway, keeping aside some of the top10 altcoins. Meaning that the lack inherent market making capability. You will not see a specific altcoin making the crypto market rise but they all follow the performance of bitcoin.

Now some outliers may exist because pump and dump schemes often run in many such altcoins. It does not indicate anything like "base stable" - Nope, it is just an outlier due to some specific reason which is not worth putting time in. In any case if you have doubts, you should look back into the altcoin's basics and try to understand if they can generate a market without doing anything and then only you can get your answer. If the altcoin in question is a obscure and less talked about one, be sure it to be a spillage of the pump and dump going on in shady discord/telegram groups.

[Issa56]

Have been into cryptocurrency for few years now and have hard different experience what I notice is that if bitcoin is dumping other altcoins also dump massively whenever bitcoin is stable most altcoins are also stable and if bitcoin pump massively other altcoins still dump but if bitcoin pump gradually other altcoins also pump. That's just what I noticed about bitcoin pump and dump how other altcoins pump and dump if bitcoin is pumping or dumping. I might be wrong but that's just what I notice.

[Benefactor]

I have seen that when bitcoin is down there are some altcoin hold their position and these activities are profoundly solid in help. The base unpredictability is the best climate for learning the exchanging however the medium instability can cause large vacillations if the cash the executives is disregarded by the merchant. There are such a lot of exchanging exhortation strings posted that I essentially see excess strings at regular intervals. We need to change our cash to be utilized in exchanging and not covetous to pursue benefit. The base unpredictability is the best climate for learning the exchanging however the medium instability can cause huge changes if the cash the board is disregarded by the merchant.

[Kittygalore]

I have seen that when bitcoin is down there are some altcoin hold their position and these activities are profoundly solid in help. The base unpredictability is the best climate for learning the exchanging however the medium instability can cause large vacillations if the cash the executives is disregarded by the merchant.

That's because some of those altcoins aren't directly tied to bitcoin but sometimes other altcoins, look at SLP, when the prices going down for bitcoin, the price of each token rose than what many have expected.

[TelolettOm]

if I myself do suggest not going all-in if you want to protect your assets at any time you are forced to lose other assets.

Yes, don't buy a single coin only. It is better to diversify assets, buy at least 2 coins. But if you have more capital, buy more crypto coins, then you can maximize the opportunity to gain more profits. If you only rely on a single coin, it will be difficult to take sufficient profits.

there is one more way that you might be able to do, namely dividing your capital into two, one keeps your money, the other buys a coin

Do you mean that don't use all funds to buy crypto coins at the same time?
So, you buy crypto coins with half of your funds, the rest is just kept in USDT. Is that true?
This is actually a very basic strategy. This means we don't use all funds to buy because it will be too risky. Money management is one of the keys to success in trading.

[Rengga Jati]

Yes, don't buy a single coin only. It is better to diversify assets, buy at least 2 coins. But if you have more capital, buy more crypto coins, then you can maximize the opportunity to gain more profits. If you only rely on a single coin, it will be difficult to take sufficient profits.

Indeed. Smart and wise diversification.
should say smart and wise diversification?
Because diversification will not pay you or will not be worthy if we choose the wrong coins.
Well, we can put Bitcoin in the first list of assets. And then continued by the top coins, of course, top coins will be also the first options. but we should also know which top coins are suitable for us, because not all top coins may fit our type of trading or investment strategy.
And if we want to take higher risks, we can continue by choosing the new or other coins that have strong fundamentals. Of course, it will be risky, that is why it may be only for trading or the short term until we can take profits at the right time.

[Cherylstar86]

I have seen that when bitcoin is down there are some altcoin hold their position and these activities are profoundly solid in help. The base unpredictability is the best climate for learning the exchanging however the medium instability can cause large vacillations if the cash the executives is disregarded by the merchant.

I also have seen every coins downfall and how they hold their positions and it was absolutely great, they had proven everything. Aside from that, it was stable and a big help. Buying 2 coins might be great instead of 1 coin, if you can maximize the opportunity, surely you can gain good profit. There's another way also that you might be able to do, it is to divide your money into two, you can keep your other money while the other is to buy stable coins which will help you gain profit.

[Karish2return]

It depends upon the person that how much he can afford and is he good at trading ? Risk management is also important in trading. It also depends on the person that how much a person can loss and can afford. Which infact can be risky for the person.