Risk in Crypto Assets Portfolio

[livingfree]

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,

True, all of them bears the same risk.

And whatever they are in career, they're just taking the same risk as what we're taking as well. In cryptocurrencies, the same risk and it's depending to the tolerance of the investor.

to reduce risk I will hold the top 100 rankings, while for big profits in the short term I will buy new listed coins .

And reducing the risk is better if you do research.

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[willhuber]

I know most people find crypto hodling better and would disagree with me but I think trading is rather less risky. We are not yet very sure about the future of cryptocurrency. Imagine keeping holding on to it in the hope that it will rise very high. When it starts falling you still believe that it will rise again but the opposite happens. There are real examples when many cryptocurrencies couldn’t climb back. I prefer benefitting from price movements that happen during the period of a few days or weeks.

[rizqoAD]

Every investment or trade carries a risk of loss, including investing or trading cryptocurrencies. What needs to be considered when entering the crypto world is to minimize the risk of these losses, for example buying Bitcoin and selling it at the right time, this is very important because it will affect your investment and trading. Apart from that, investment plans and management are also required to fit your trading roadmap. We cannot eliminate the risk of loss, but we can minimize the loss.

[AicecreaME]

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 general, the common ground that affects and positions at disadvantage/risky side all of the three kinds of people you have mentioned is volatility. The fluctuation of market price is definitely the main factor that could risk one's asset. It's the nature of crypto and we are all aware of that. It just depends on how we will manage and cope with it to our benefits.

As a retail investor, the volatility could affect your decision making in investing. There are times that the position is low or high depending on market demand. Sometimes, the price value of bitcoin in the market seems to be 'low' but it isn't it. And if you happen to invest in high position, you'll have a feeling of regret later. Since you can't really withdraw it after a while. You'll have to wait for the price to climb. Personally, if you're an investor for long term, I guess volatility brings you less risk. Unless you will be FOMO-ed.

As an asset manager, the volatility could make a huge impact to the account holder's portfolio the moment things go the way you perceived it to be. If ever things don't happen like what you predicted, you will be in a trouble. So you have to always have a plan B as a way out before it's too late.

As a trader, volatility could either make or break your asset. You should always watch the chart trend of pump and dump and do technical analysis as a basis of your decision. You should know when to take profit and when to cut loss. If ever you'll just hope for the best despite seeing that the position is going nowhere, your assets will be liquidated.

There are so many keypoints that I haven't mentioned here yet, but these are the things that first came into my mind. Hopefully, I gave you helpful insights.

[bitterguy28]

I know most people find crypto hodling better and would disagree with me but I think trading is rather less risky.

this differ in what is our main objective in investing here in our market.

if you know how to trade then do it, but if not then best to HOLD.

We are not yet very sure about the future of cryptocurrency. Imagine keeping holding on to it in the hope that it will rise very high.

actually that is the risk we must take and also those are the risk taken by the Billionaires now who trusted this currency since day one.

When it starts falling you still believe that it will rise again but the opposite happens. There are real examples when many cryptocurrencies couldn’t climb back. I prefer benefitting from price movements that happen during the period of a few days or weeks.

Never invest in coin that has no future , i mean those coins that has been created solely for the benefits of the team and not the whole market.

[noah tall]

There are so many risk in crypto asset portfolio . Just like scammer can produce there own tokens and thay grab the money of investors and ran away . And other one is when you link your wallet with other apps . Than hacker can easily clean your wallet.  So be careful about your portfolio.

[TheUltraElite]

There are so many risk in crypto asset portfolio . Just like scammer can produce there own tokens and thay grab the money of investors and ran away . And other one is when you link your wallet with other apps . Than hacker can easily clean your wallet.  So be careful about your portfolio.

These things are client-side problems that can be overcome by being vigilant, doing due diligence when investing and keeping your devices safe from malware. Easy to speak but most people dont end up taking preventive precautions and the first attack only makes them careful.

For a retail investor and trader, this can be devastating. For a asset manager, the fault is from their side, but an asset manager will already have learnt the basics on how to keep the assets safe from theft before joining.

But this is just one risk in crypto. The speculative risk is what is more happening everyday on the market .

It must be understood that all types of investments have risks, such as bitcoin which is a very risky type of investment, because it is too risky so I recommend investing only the money you have in hand, never dare to sell property or other assets to buy bitcoin.

I think majority of the stories of someone investing their life savings of entire property on bitcoin, are only stories to put risk-taking traders at bay and not real at all. Take them with a bit of salt, invest responsibly.

it's better to have a special budget to buy bitcoins on a regular basis by setting aside some of your salary to buy bitcoin.

That is a good idea, but keep the prices on check, not every month will have a proper price to buy at, during such times - just hold the fiat.

[FanEagle]

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.

Both retail investors and traders may not need to hold bitcoin so that they will never need to bother about the fluctuations of bitcoin markets but if the asset manager is about holding bitcoin for long period of time then they should plan of for more than four years of holding so that they could beat the fluctuations of bitcoins as bitcoin is known for growing up at least 10x in every four years.

By long term holding, we can eliminate the risk factors involved in bitcoin investment please note that only when you are holding bitcoin for months to years then you will get affected by its fluctuations at the same time if you are planning for holding for 4 to 8 years then you can get more chances to come out in profit by beating all the risks.

[Issa56]

Surely when it comes to cryptocurrency their is always risk because nobody is certain about anything that will happen and not even cryptocurrency alone, even in life nobody knows what will happen in the future. I will be talking about cryptocurrency trading, you must make sure you do due research and trade a reliable coin which if you are in sport trading you don't really have to make use of stop lose but some people still use stop lose for sport trading but me personally I only use stop lose for my future trading to avoid lose of all my funds. (Liquidation).

[Shenzou]

It must be understood that all types of investments have risks, such as bitcoin which is a very risky type of investment, because it is too risky so I recommend investing only the money you have in hand, never dare to sell property or other assets to buy bitcoin. it's better to have a special budget to buy bitcoins on a regular basis by setting aside some of your salary to buy bitcoin.

That is true but we can all agree on the fact that long term investment in bitcoin is way safer than investing in anything else, if you asked me about investing in bitcoin three or four years ago i would be hesitating and i would recommend otherwise because back than there were no regulation for it, and it seemed like government were against it, but today we are seeing not only big multi billion dollar companies invest in it, but entire countries accepting it and making it as an accepted currency, and due to its nature and limited supply the price is always going to go up so in terms of long term investment it is safe, but the other alt currencies not so much.

[Ziskinberg]

It must be understood that all types of investments have risks, such as bitcoin which is a very risky type of investment, because it is too risky so I recommend investing only the money you have in hand, never dare to sell property or other assets to buy bitcoin. it's better to have a special budget to buy bitcoins on a regular basis by setting aside some of your salary to buy bitcoin.

That is true but we can all agree on the fact that long term investment in bitcoin is way safer than investing in anything else, if you asked me about investing in bitcoin three or four years ago i would be hesitating and i would recommend otherwise because back than there were no regulation for it, and it seemed like government were against it, but today we are seeing not only big multi billion dollar companies invest in it, but entire countries accepting it and making it as an accepted currency, and due to its nature and limited supply the price is always going to go up so in terms of long term investment it is safe, but the other alt currencies not so much.

Thus, we can't push or encourage people to choose long-term investments as it was too difficult for doubtful people. It is very common that these people will think about what ifthe price will dump? the market will collapse? They are not totally sure about their decision but rich people can make it. That's helped me to think that talking about the long-term will also base the status of our life. Having multiple sources of income (like rich people) could make it but if you are poor or coming from a third world country that is something rare, most come and decide on a short-term investment goal as they think this could safeguard their money.

[Torps1]

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.

It's true that there's always a level of risk associated with investment in general. As per cryptocurrency, the high volatility makes it even more!

So as a retail investor, a trader or an asset manager, there's always an option to manage losses or gains. The stop loss and take profit button is very useful in this case.

Also,  knowledge is very important in doing anything. A knowledgeable person will definitely know how to cut loss and take more profit when compared to someone bent on making only money without the knowledge of what he's/she's doing.

In general, it is better to always invest what one can loss such that the effect will not be suicidal.

[zaesvlas]

There are quite a few risks in cryptocurrency. A completely working option is to buy different coins and just wait for growth. But it is worthwhile to understand that this can also be past.

[DewiKirana]

Each of these three points has a big risk as well as a big profit. Investors and asset managers have the same great risk if they have crypto assets, but the ones who are most directly at risk are crypto traders, because Bitcoin prices fluctuate.

[Rahman11]

5 Risks You Need To Know About Before Investing in...
Price volatility & manipulation. Cryptocurrencies have been on a wild ride. ...
Lack of regulations. ...
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Exiting the market.

[Luzin]

Each of these three points has a big risk as well as a big profit. Investors and asset managers have the same great risk if they have crypto assets, but the ones who are most directly at risk are crypto traders, because Bitcoin prices fluctuate.

Everyone has risks, I don't see what he chooses. So all require good management and not all can do that. Fluctuations have indeed become the nature of all cryptos so don't make that a problem. I am sure traders, retail entrepreneurs and others who seek to profit by utilizing these fluctuations despite different sources. What plays a role here is the expertise of analysis, market analysis and risk compounds that must continue to be trained.

[jostorres]

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.

When you talk about risks that are involved in investing money in cryptocurrency, it all comes down to one thing which is loss. Anyone who is investing in cryptocurrency or trading it is likely to lose their money at anytime, it doesn’t matter whether you are an asset manager, a day trader, Or a retail investor. Whatever you are in the market,you’re going to face the risk.

Though, as an asset manager I would say that you are taking more risk, as the asset you are managing belongs to other people or should I say other investors, and losing such a huge money is going to be a huge risk for you. That’s why being an asset manager is not a job that’s meant for just anyone, you have to be someone who is really brilliant and well experienced in everything that has to do with trading and economy. If you’re not good in technical analysis or fundamental analysis, managing assets is going to be a huge challenge.

[turneps]

The important thing to do when you decide to invest in cryptocurrencies is to allocate your portfolio. The question is where and how much should you invest. However, there is no exact answer to this as each investor will have to decide how much money they want to allocate to their crypto investments according to their goals, capabilities, risk profile, situation, etc. personal finance.
Possible risks when investing in cryptocurrencies:
 - cryptocurrency is an emerging asset class, the liquidity of many cryptocurrencies is not high or cannot exist in the market.
 - cryptocurrencies are not regulated by any government agency or organization, however this can lead to a lot of legal risks and other consequences.
 - price volatility is one of the attractive points of BTC for speculators, but it also brings many risks.

[chanler]

the risk that can be obtained of the three is the crypto market which goes down and makes the market chaotic. other than that someone who invests or trades shitcoin will certainly get the losses and will get nothing so before investing into crypto we must be more careful in choosing the coins. The coin that we choose will also have an impact on the profit we can get, invest and trade the coins that do have good prospects.

[Fredomago]

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.

When you talk about risks that are involved in investing money in cryptocurrency, it all comes down to one thing which is loss. Anyone who is investing in cryptocurrency or trading it is likely to lose their money at anytime, it doesn’t matter whether you are an asset manager, a day trader, Or a retail investor. Whatever you are in the market,you’re going to face the risk.

Though, as an asset manager I would say that you are taking more risk, as the asset you are managing belongs to other people or should I say other investors, and losing such a huge money is going to be a huge risk for you. That’s why being an asset manager is not a job that’s meant for just anyone, you have to be someone who is really brilliant and well experienced in everything that has to do with trading and economy. If you’re not good in technical analysis or fundamental analysis, managing assets is going to be a huge challenge.

It's a skill that does not belong to everyone, as you mentioned a simple trader handle his own money the risk of losing is in his hands while with asset manager, it's a compound investment that being entrusted to you, deeper experienced and really knows how to work with this business rely the fate of this investment money that you are holding.

Though it's just the same, the market is so volatile, without knowing what adjustments to take will risk your money to lose.

In the other hand, knowing the fundamentals and keep improving your knowledge are your best advantage in making your way to succeed.