Risk in Crypto Assets Portfolio

[michellee]

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market it is very volatile and disappears maybe overnight you wake up that coin has disappeared or is dead no longer active.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.

We can search for many lessons about how to minimize the risk in crypto and deal with the volatility, but we need to learn how to do that. The risk will be there in any investment type, not just in crypto, so if we can manage the risk not to become bigger, we will not have any problem using crypto. Besides that, we need to know how much money we will invest in crypto so we do not lose much money.

[tygeade]

The same risk of volatility is what all three of them are going to be facing, if you’re a day trader you’re running the risk of losing your money while you’re trading if you don’t know how to trade or maybe the market wasn’t just in your favor for that day. Then if you’re retailer, well, it’s still kind of similar to what you’re going to face when you’re a day trader, you’re facing that risk of volatility and losing money as well, unless there are other ways that you can cover up for what you’re losing. Then finally being an asset manager, still the same thing.

But, I don’t think this is going to be a case whereby those you are managing their assets will blame you because no one can hundred percent predict the market, it’s a really difficult thing for anyone to do.

[TheUltraElite]

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market it is very volatile and disappears maybe overnight you wake up that coin has disappeared or is dead no longer active.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.

I understand your apprehension, let me guess - you had some altcoin that went in this manner at some point of time during your trading timeline?

To be honest, you cant expect anything better from altcoins. Majority of them are very high risk assets. Compare them to bitcoin which has a volatility range of 5-10% only over few years, bitcoin becomes the ultimate coin to own for the future, not altcoins. Whatever the altcoin teams say and whatever they promise, they are carrying risk beyond you can imagine. The legal help is almost none when the project decides to shut down and so and therefore your protection as a backer is zero.

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.

Simple put, invest in bitcoin at lower prices. Then you can sleep for the next 10years and see the price rise and you will be making a lot of profit by just hodling it and if possible cycling the coins through bull and bear.

[dezoel]

Basically, they all run the same risks of losing their money while investing in cryptocurrency. But, then I think there is more risks when it has to do with being asset manager, because you’re going to be managing assets that belongs to public (that is to say other investors), and since they are all relying on you, you’re going to have to be very careful while you’re doing to avoid any problem.

As a retail investor or trader you’re doing it for yourself. A retail investor is likely someone that would buy bitcoin and hold it for a long term and then buy again whenever they have the money to buy any more. Then a trader is always there and trading bitcoin and other cryptocurrencies on a steady and there is much risk of them losing their money if they should predict wrongly.

[Wong Gendheng]

All businesses and investments have risks, as we know that investing in cryptocurrencies is like a roller coaster, rising and falling prices make us often surprised, but we can use this to get big profits, the most important key to profit is to be patient and never sell at a price. make a loss.

[Rishabh riyz]

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.

we know that bitcoins is digital decentralized crypto currency which mean its unregulated and we also know that the value fluctuates a lot , which makes it a high risk high reward asset ,
Although the returns on investing in cryptos are astonishing high but we can  never be sure about cryptos crashing , the chances are low but they aren't that low to be ignored , the value highly depends on the supply and demand ,
I don't think many retail investors and asset managers would opt crypto for big amounts considering the risk , but for traders they can just invest in any other crypto which is more stable and are regulated .
 

[TheUltraElite]

All businesses and investments have risks, as we know that investing in cryptocurrencies is like a roller coaster, rising and falling prices make us often surprised, but we can use this to get big profits, the most important key to profit is to be patient and never sell at a price. make a loss.

Good thing you have understood this. Most newbies entering this market are coming from hyped shills who promote altcoins that are dying out. Eventually these newbies get fooled into buying those shitcoins without learning about how the market works. Doing a little bit of research can save a lot of money in this market. But without prior knowledge of speculative asset trading and how things work this can be bad for many new entrants.

I don't think many retail investors and asset managers would opt crypto for big amounts considering the risk , but for traders they can just invest in any other crypto which is more stable and are regulated .

Big or small amount is a relative term. I guess people understand the market and see how it moves first before increasing their average volume. But it is true that risk takers will always go big no matter what, their appetite is much larger. Retail investors are likely to be more cautious.

[Alisha FR]

Some cases of loss according to them wrong analysis and rush to make decisions. Judging from the price movement of Crypto itself, many people speculate in trading, regardless of the analysis they have done before deciding to open buy. Actually there is nothing wrong in analyzing if the knowledge of the market is broad and already has skills in the market. Talking about profit, no one can guarantee, but the profit ratio is bigger if based on good analysis.

[AmoreJaz]

Some cases of loss according to them wrong analysis and rush to make decisions. Judging from the price movement of Crypto itself, many people speculate in trading, regardless of the analysis they have done before deciding to open buy. Actually there is nothing wrong in analyzing if the knowledge of the market is broad and already has skills in the market. Talking about profit, no one can guarantee, but the profit ratio is bigger if based on good analysis.

you can only have good analysis if you are very familiar with the coin you are trading with. if you are just blindly following the fud in the market, you can easily lose your hard-earned money. whether you are a retail investor or asset manager or trader, the knowledge about the coin you are trading with is very important, as it will give you insights on where the coin is heading.
also, one thing that i noticed is you should follow or subscribe their social media channels, as sometimes they will give updates or hints on what's going on that you can't find on their thread here. so some of the developments have an impact on their price, so it is better to keep updated with their progress.

[adzino]

I don't see any difference between investing as a retail investor, asset manager or as a trader. They all face the exact same risks everyone faces which is volatility. The crypto market is very volatile. The price may go up or down within few seconds. The risk is less if they are willing to invest and hold coins for long term. Coins like Bitcoin and Ethereum will give them a good profit. There is also the regulatory risks. Any new regulations added by the government might cause problems to current investors.

[sherenikaw]

Yes, it's true that everything has a risk. The risk that can be obtained from the crypto world such as investors or traders is the crypto market that goes up and down. This ups and downs crypto market makes them have to be able to think carefully to be able to sell or buy coins properly. besides that they also have to be able to choose good coins to invest or trade. This risk can be overcome if we are careful and alert. do all that with careful thought and also do not rush.

[carrigan]

There must be risks in the world of cryptocurrencies, whether investing or trading. Both are equally risky, but there are things you can do to reduce the occurrence of these risks. In trading you can use a stop loss, this point should not be forgotten because it is really important to reduce losses. Besides that, you also have to determine the right time when selling or buying coins. What is also often forgotten by many traders is usually their emotional control is trapped and finally emotions, therefore you must often practice your patience.

[Quidat]

Some cases of loss according to them wrong analysis and rush to make decisions. Judging from the price movement of Crypto itself, many people speculate in trading, regardless of the analysis they have done before deciding to open buy. Actually there is nothing wrong in analyzing if the knowledge of the market is broad and already has skills in the market. Talking about profit, no one can guarantee, but the profit ratio is bigger if based on good analysis.

When you are making such rush decisions just because you are in a hurry on making profits then thats really a big mistake for you to make.
You cant be sure on what would happen next and its just right that you would really be minding about the risk involved and would really be
that careful on making actions just because you do know that you could lose money if you are really that careless or would make actions
without any basis. You are the ones who would make out such plans and decisions according on what you had learned.

[kopijos]

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.

I will answer this question a bit. I hope this answer can help many people

1. As a retail investor: the risk you get is speculation when prices decline and investors can't do anything. because the nature of investors is to wait like a holder

2. As an asset manager (hedge fund business): when the market is unstable this will disturb the asset manager owned

3. As a trader: when the market dumps the trader must be able to control and manage assets well. because this is the advantage that traders can switch from one crypto coin to another at any time to reverse the lost profit with various trader techniques

[Vatimins]

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 really think about it, there will always be risks in whatever investment you make. The only thing that makes the difference is your knowledge about a specific investment, how much you know about it; the do's and don'ts. Another thing would be how you carry yourself as an investor and how you manage your portfolio and risks. Knowledge is one thing, but knowing how to apply that knowledge is a whole new level that would need actual experience or mentoring. Anyways, hope you understand what I am trying to point out.

[Gudhal Untu]

All investments have risks, and cryptocurrencies are a type of high risk investment, but we must always be vigilant because many things can happen in cryptocurrencies, to reduce risk I will hold the top 100 rankings, while for big profits in the short term I will buy new listed coins .

[TheUltraElite]

Yes, it's true that everything has a risk. The risk that can be obtained from the crypto world such as investors or traders is the crypto market that goes up and down.

Are you confusing risk with volatility?

This risk can be overcome if we are careful and alert. do all that with careful thought and also do not rush.

This is not Road-Rash. The risk in crypto comes from the government's policies on bitcoin which are grey and the price changes. These cannot be overcome by going slow, the risk remains same.

Besides that, you also have to determine the right time when selling or buying coins.

To a large extent the buying and selling points are important and they determine how much profit you end up making. The asset managers are facing everyday changes in price so forget them - they dont even get to see a good profit being pushed into the field at bear or bull. But the retail investors are having an advantage here being the ones to enter the market at their own sweet time.

to reduce risk I will hold the top 100 rankings,

Make that top five. Top 100 is 95 shitcoins in my opinion.

while for big profits in the short term I will buy new listed coins .

A common mistake that I did not expect you to do. Some less experienced users might have this notion but you should not. Newly listed coins are very well shitcoin 99% of the times. Better to keep your money focused on bitcoin. Your returns might not be huge but similarly your losses will also not make you bankrupt.

[andriarto]

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 really think about it, there will always be risks in whatever investment you make. The only thing that makes the difference is your knowledge about a specific investment, how much you know about it; the do's and don'ts. Another thing would be how you carry yourself as an investor and how you manage your portfolio and risks. Knowledge is one thing, but knowing how to apply that knowledge is a whole new level that would need actual experience or mentoring. Anyways, hope you understand what I am trying to point out.

with knowledge we will understand the risks and rewards, so that we will be able to take a realistic view of the type of investment that we do. like bitcoin, which has a high fluctuating nature, so we are required not to panic sell, and if we can manage it then we will get the rewards we want, but to take profit we must also be realistic by putting aside greed

[Anonylz]

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.

Beside the price risk, to me among the biggest risk is losing your keys as an investor with a long term goal in mind, actually am currently facing such delimma, bought some Tokens back in 2018 at a very cheap price, now tokens have valued alot but my keys seem not able to open the wallet of the token, seem I must have copied it wrongly or so, now I can only see what's on wallet without access  , not a good situation.

[Nhor1011]

Every investment is risky but remember," the more the risk the bigger the profit" if you know how to handle your investment. Also you can minimize risk just learn how to do it. Also just choose from the top coins in coinmarketcap to make sure that you will earn and minimize too much risk. The volatility in crypto has  a good return because we can earn through this. Avoid investing huge amount in new coin without utility or use case.