Risk in Crypto Assets Portfolio

[mk4]

The point you make about adding a stop loss to trades being a way of protection against unnecessary risk id true. However, the opposite is true.

Because the crypto markets are so volatile a stop loss can trigger liquidation before shooting up again, yes, it happened in the past that profit in this way was not maximised and thus that window of opportunity was missed. So a stop loss should be regarded with both its pros/cons, a stop loss is not a safe haven for traders but a strategy that comes with its own risk and benefit.

Never said stop losses were a safe haven though, because it never was. I mean, is there even a single trading tool/function that's literally just 100% upside lol? It's just a tool that you can use to "protect" yourself from heavy volatility, regardless from a heavy upside or a heavy downside.

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[dansus021]

risky always happen on every investment not just in crypto but yes crypto have high volatile rather than stock or other investment instrument

but you can always minimize the risk with some way like all people above me said

[michellee]

risky always happen on every investment not just in crypto but yes crypto have high volatile rather than stock or other investment instrument

but you can always minimize the risk with some way like all people above me said

The risk will always be there and it is how we manage the risk not to become bigger and with our experience, hopefully, we can reduce the risk and even make a profit. The volatility of coin prices will be a risk for everyone if they decide to invest in crypto, whether they are a retail investor, an asset manager (hedge fund business), or a trader. As long as we can learn how to manage the risk, it will not be a problem, and we will have a chance to grow our portfolio.

[Shasha80]

risky always happen on every investment not just in crypto but yes crypto have high volatile rather than stock or other investment instrument

but you can always minimize the risk with some way like all people above me said

The risk will always be there and it is how we manage the risk not to become bigger and with our experience, hopefully, we can reduce the risk and even make a profit. The volatility of coin prices will be a risk for everyone if they decide to invest in crypto, whether they are a retail investor, an asset manager (hedge fund business), or a trader. As long as we can learn how to manage the risk, it will not be a problem, and we will have a chance to grow our portfolio.

That is the importance of having good risk management in crypto investments, so that we can face highly volatile crypto prices. So when the crypto price
goes up and we've made a profit, don't be greedy by waiting for the price to rise even higher, we must immediately take profit. So the risk of us
experiencing losses can be avoided, we can also invest in some coins to minimize the risk. Because if the price of one coin goes down, we can just
make a profit from the other coins. Those are some examples of overcoming very high risks when investing in crypto.

[slaman29]

Never said stop losses were a safe haven though, because it never was. I mean, is there even a single trading tool/function that's literally just 100% upside lol? It's just a tool that you can use to "protect" yourself from heavy volatility, regardless from a heavy upside or a heavy downside.

Yeah, stop losses aren't about safety of your trades, it's about protection of your bankroll. Why should your entire bankroll sacrifice itself for one small trade which was supposed to make a single percentage profit right?

And people complain about volatility hitting their SL but let's face it, when it hits your TP, we're all just as happy

[Sir Legend]

As we know that cryptocurrencies are like a roller coaster that can make our hearts beat fast or sometimes stop, if we don't check for a week then we can be sure that crypto assets can go up or down by tens of percent, this is a high risk so I recommend investing in crypto if you already have good finances.

[michellee]

risky always happen on every investment not just in crypto but yes crypto have high volatile rather than stock or other investment instrument

but you can always minimize the risk with some way like all people above me said

The risk will always be there and it is how we manage the risk not to become bigger and with our experience, hopefully, we can reduce the risk and even make a profit. The volatility of coin prices will be a risk for everyone if they decide to invest in crypto, whether they are a retail investor, an asset manager (hedge fund business), or a trader. As long as we can learn how to manage the risk, it will not be a problem, and we will have a chance to grow our portfolio.

That is the importance of having good risk management in crypto investments, so that we can face highly volatile crypto prices. So when the crypto price
goes up and we've made a profit, don't be greedy by waiting for the price to rise even higher, we must immediately take profit. So the risk of us
experiencing losses can be avoided, we can also invest in some coins to minimize the risk. Because if the price of one coin goes down, we can just
make a profit from the other coins. Those are some examples of overcoming very high risks when investing in crypto.

When it comes to investment, risk management is important and makes us careful to manage it. But many people can not do that instead will get many effects when they see the price goes up or down. We know that many of them panic when the price is down and decide to cut losses to reduce the big risk, but some are not doing anything except wait for a while. The greediness can also come to us, especially if the price rises even higher and makes us delay taking a profit. But in the next hour, the price drops and makes us regret not selling at a high price. We really need to control ourselves to anticipate or manage the risk and take profit at the right time.

[kryptqnick]

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

If you're #1 or #2, the biggest risk if the bear market coming. Bitcoin stayed low through most of 2018 and 2019, and not everyone can afford to see the investments being so low, and yet keep hodling and waiting it out. It's not so much about day-to-day volatility because that, IMO, is irrelevant for this sort of investments, as it is about a market tendency that can last for a few years. As for traders, you just need to be very skilled, I guess, and then even a bear market isn't a problem because a key to trading is learning to use volatility to your advantage, and there's always some positive along with some negative price movement during any market situation.

[Zilon]

market volatility, news, market capitalization, market volume so many of this factors affect the portfolio of any crypto investor be it a trader, a retail investor, an asset manger, trader the all get trapped in the whale most times this factors plays so intensely on their emotions steering up greed and endless market imagination

[mk4]

Yeah, stop losses aren't about safety of your trades, it's about protection of your bankroll. Why should your entire bankroll sacrifice itself for one small trade which was supposed to make a single percentage profit right?

It will completely depend on the trader— stop losses can be used for preventing further potential losses on individual spot trades, and at the same time for protecting your total bankroll from leveraged trades. It's not one or the other.

[Rampagoe004]

 The value of crypto is volatile so that the risks we face are greater especially we as large investors of course when experiencing a decline we will feel chaos and this is very dependent on what coins we are investing in if the coin has high potential then this is not too burdensome because it has a high possibility to increase again, if we want to reduce the risk then the choice of coins that we want to invest must really be monitored properly perg Put the price on.

[noormcs5]

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

First you need to understand that there is risk everywhere. For example if you invest in stock or securities would you not have the risk losing money if the stock or shares goes down ?
Same is with crypto currencies where you can lose too in case the bitcoin/altcoin dump. The real winners are only those who invest and trade with proper risk management.

[TheUltraElite]

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

There are risks in every investment or any venture in life. The point is to minimize and mitigate risks.

1. As a retail investor

A retail investor is looking for quick earnings through profit from price variations. They will face risks of price volatility, but this can be minimized by entering at a lower price than the market price.

2. As an asset manager (hedge fund business)

An asset manager manages the assets of another business. They are not directly owning those assets but is paid separately. Even if the assets drop in price they will be paid what they always are. However they have to diversify portfolios in order to weigh out low performing assets and weigh in high performing assets. This is not as easy as it sounds.

3. As a trader.

1 and 3 are more or less same. But talking about day traders, they face more risks than a retail investor and market volatility is more in day trading/short term than long term.

[slaman29]

Yeah, stop losses aren't about safety of your trades, it's about protection of your bankroll. Why should your entire bankroll sacrifice itself for one small trade which was supposed to make a single percentage profit right?

It will completely depend on the trader— stop losses can be used for preventing further potential losses on individual spot trades, and at the same time for protecting your total bankroll from leveraged trades. It's not one or the other.

But I'm not saying it's one or the other. Totally with you here:) If you see my response it was to your comment about stop loss not being a safe haven, that is, it's not to make your trades safe, it's to protect them from further risk, and to protect your bankroll. So yeah, it's protection and risk reduction is all. That's why I see SL as a seatbelt/airbag. It's not optional, I would never drive (trade) without it.

[lumierre]

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

The main risk of this market is volatility and it concerns traders first of all, as investors don't care about short fluctuations.
As for investors, one risk I can think about is the problem of storing your assets. The safest way to store your bitcoin is cold wallet. One more important thing is to keep your keys and passwords in a safe place, as despite losing your cold wallet, you can recover bitcoin if you remember seed phrase.

[Shasha80]

~

The risk will always be there and it is how we manage the risk not to become bigger and with our experience, hopefully, we can reduce the risk and even make a profit. The volatility of coin prices will be a risk for everyone if they decide to invest in crypto, whether they are a retail investor, an asset manager (hedge fund business), or a trader. As long as we can learn how to manage the risk, it will not be a problem, and we will have a chance to grow our portfolio.

That is the importance of having good risk management in crypto investments, so that we can face highly volatile crypto prices. So when the crypto price
goes up and we've made a profit, don't be greedy by waiting for the price to rise even higher, we must immediately take profit. So the risk of us
experiencing losses can be avoided, we can also invest in some coins to minimize the risk. Because if the price of one coin goes down, we can just
make a profit from the other coins. Those are some examples of overcoming very high risks when investing in crypto.

When it comes to investment, risk management is important and makes us careful to manage it. But many people can not do that instead will get many effects when they see the price goes up or down. We know that many of them panic when the price is down and decide to cut losses to reduce the big risk, but some are not doing anything except wait for a while. The greediness can also come to us, especially if the price rises even higher and makes us delay taking a profit. But in the next hour, the price drops and makes us regret not selling at a high price. We really need to control ourselves to anticipate or manage the risk and take profit at the right time.

I agree that controlling emotions is also important in crypto investing, don't let our emotions overwhelm us when investing. As you explained,
where quite a lot of people panic when prices suddenly fall, they will choose to cut losses. Even though if we wait patiently and hold the coins
that we have, the market will recover soon, the most important thing is that we invest in potential coins. Then related to greed I have also
explained, crypto is an asset with high risk, so don't be obsessed with big profits. Most importantly, if there is an opportunity to take profit,
do it immediately. Especially if the price has gone up very high, take profit immediately. Sometimes the opportunity doesn't come back and
we will regret it if we miss the opportunity to make a profit, just because this greed generates a large profit. That's the importance of knowledge,
then learn everything about the crypto world before deciding to invest in crypto, so we can know what to do when investing in crypto.
Because we already understand how the crypto world works.

[yazher]

As a trader, the risk is always your partner because you're making some decisions where you might lose your capital but you can also increase it with higher chances. The only problem here is if you don't know what you are doing and you only follow the trend when the price of a certain coin is increasing. To be honest, if you don't take some risk in trading, you won't get anywhere because taking risk is taking some personal experience where you can use it in your later decision which will become your main capital with your money.

[noormcs5]

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

In order to be successful, all there types of crypto investors (Retail, Asset manager or trader) has to follow the basic principal of money management. No matter how much money you ca afford to invest or how good trader you are, without this money management there is no way to gain success in the long term.

[davis196]

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

I think that the risk is the same for the different kinds of investors,if we are talking about a 100% cryptocurrency portfolio.
Why do you think that the risk will be different for a institutional investor and for a small crypto trader?
If the portfolio is filled with different kinds of financial assets,and the cryptocurrenies are 5% only,then the risk is way lower.The big investors usually have big and diversified portfolios,so the risk of having Bitcoin in their portfolios is lower.A small crypto trader usually isn't building crypto coin portfolios,he is more focused on day trading.A portfolio,which consists of 100% Bitcoin and altcoins is pretty much pointless,because Bitcoin and most altcoins have the same price pattern.
 

[hichamito37]

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

My answer is in 3 things you if all things are equally risky. because in this cryptocurrency market it is very volatile and disappears maybe overnight you wake up that coin has disappeared or is dead no longer active. This is no one can predict that the risk is inevitable. The first thing we should do is to minimize our own risk and learn how to properly manage our investment capital, gain experience and knowledge about the crypto market.