Risk in Crypto Assets Portfolio

[batang_bitcoin]

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.

Why anticipating loss already by trading or investing those type of coins? There are investors and traders that are making a lot of money from trading those.
It's that it's not ideal for us because they're not our choice. But to them, they're making a lot of money from it when they get to ride the hype at the beginning of it.

[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.

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

     Knowledge is basically not enough without proper wisdom. Only with having both knowledge and wisdom can one be a better doer. Just think about it, what would knowing help if you do not understand the ways to apply the knowledge you have or when you should apply it? In contrast, only understanding the ways won't do you any good without the concrete knowledge to back it up.

     Although I got your point clear as day, I just wanted to clarify that while knowledge is important, wisdom is also as important and that having both is even more important. I say this because without those two, the things that you have mentioned above will be impossible to achieve.

[kotajikikox]

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.

Why anticipating loss already by trading or investing those type of coins? There are investors and traders that are making a lot of money from trading those.

It is depend on how they trade and their behavior in trading, Maybe he is just too afraid to lose in which not needed in this market because the more the price is volatile is the more chances of gaining.

It's that it's not ideal for us because they're not our choice. But to them, they're making a lot of money from it when they get to ride the hype at the beginning of it.

Exactly , we have our own batch of currencies and we have our belief in each coin, when from others it is not worth trusting well in our part that is the most promising so the thing is? for someone to profit there must be someone that needs to lose  right?

[Cryptmuster]

     Knowledge is basically not enough without proper wisdom. Only with having both knowledge and wisdom can one be a better doer. Just think about it, what would knowing help if you do not understand the ways to apply the knowledge you have or when you should apply it? In contrast, only understanding the ways won't do you any good without the concrete knowledge to back it up.

Things are not even in wisdom, but in discipline and understanding of how to apply your knowledge. Just do not need to complicate for yourself, what can be done simply. For example, we see that in the long term, bitcoin and gold are constantly growing in price and it is not difficult to guess that this is due to the constant increase in the money supply and rising inflation. Therefore, there is no problem just buying bitcoin and gold and waiting for them to grow in price.

[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.

As a retail investor, the biggest risk is that you know when to invest and for how long you can invest. If you are investing for short term, then there is a risk that prices may be down when you need to cash out.

As a trader, you should understand the different types of trading which include spot and futures trading. Your account can be completely washed out if you are not careful and do not follow the TA with money management.

[Peanutswar]

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

[Reatim]

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.

As a retail investor, the biggest risk is that you know when to invest and for how long you can invest. If you are investing for short term, then there is a risk that prices may be down when you need to cash out.

cashing out is always the issue in our investment because it is easy to buy a coin and trust this but the problem is when we will be needing the currency and where we will bring this.
Have been in this situation many times before but lucky that i also have funds in banks so whenever i am badly needed? i can take out my funds in banks instead of my funds inside crypto.

As a trader, you should understand the different types of trading which include spot and futures trading. Your account can be completely washed out if you are not careful and do not follow the TA with money management.

That is the saddest part, if you made a wrong action and decision and suffered a complete lose , this will end up your career and you may curse bitcoin or crypto all your life.

[Questat]

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

[Slow death]

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

[CaVO32]

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

That is actually the most common misconception of most newcomers in the crypto industry. Because they thought getting easy money here is that easy peasy. And then, they will find out that it is not what it seems. With thousands of alts to choose from, for sure they will be confused where to start. As some are after for get-rich-quick projects, a lot are being screwed by these scam projects, giving them bad experience in crypto. And this is where some negative feedbacks are coming from. But it is not the general character of crypto, misleading some noncrypto users.

[Webetcoins]

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

The OP lists three kinds of people that are involved in crypto and they are: retail investor, asset manager (hedge fund business) and trader. Although I agree that trading is risky but I think the position of being an asset manager has more risk than in trading because the asset that you are managing are not yours but it was the asset of other people and if you lose it, your going to have a hard time paying it and if not, your going to face serious punishments.

This discussion wont be complete if we are not going to talk about retail investor. This type has the lowest risk among the three because you usually pick old coins as old coins works well in investing or hodling for long term.

[Vatimins]

Things are not even in wisdom, but in discipline and understanding of how to apply your knowledge. Just do not need to complicate for yourself, what can be done simply.

     I acknowledge your idea but discipline and understanding falls into wisdom which is also gained through experience. That's why people often say "wisdom comes with age."

we see that in the long term, bitcoin and gold are constantly growing in price and it is not difficult to guess that this is due to the constant increase in the money supply and rising inflation. Therefore, there is no problem just buying bitcoin and gold and waiting for them to grow in price.

     Yes that truly is the case, but you also have to consider that not all people have good enough financial capabilities. Which is why knowledge and wisdom is needed for people less capable so they can manage their finances and have better investment plans. All throughout the years we have seen dozens of stories from a wide variety of people investing blindly; putting all eggs in one basket or even investing money that they cannot afford to lose and end up getting rekt. I hope you get my point.

[Henrobakkara]

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.

Why anticipating loss already by trading or investing those type of coins? There are investors and traders that are making a lot of money from trading those.
It's that it's not ideal for us because they're not our choice. But to them, they're making a lot of money from it when they get to ride the hype at the beginning of it.

For me, Cryptocurrency trading and Investments are mostly about knowledge and some level of luck. You might be right when you said, people are making money from investing in some type of cryptos, a lot of other traders have lost money from those too so it wasn't because they knew it was a better option but just took a higher Risk = Higher reward.   

[panukurap]

Yes, of course, behind the big profits there is also a big risk. Crypto is already known to many people at high risk, but in fact crypto enthusiasts are still increasing, not decreasing. Countries are also starting to legalize some cryptos. This can be a good start. There is a risk, so we face it instead of running away from problems, this is often a challenge for traders because as traders we must be able to keep emotions well. There's nothing wrong with taking part in cryptocurrency, the important thing is that you believe and believe. It's useless if you enter cryptocurrency but just stay silent.

[KaliLinux]

Tore is no prediction work in the Crypto price. And it is risk that your crypto asset portfolio will be low and can be high. If your asset will be increased then it is good but if your asset will be decreased then you will be in loss.

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

[ShowOff]

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

Some people get it right and they are willing to stick with it, but there are always people who can't stand a drop in price and they panic so much to sell it. Building a good portfolio for long term investments is something that most people really hope for, but if they can't control their emotions during this volatile market then they really can't take maximum profit in the long term.

It's not really strange, but a lot of experience can usually make most people get a commensurate return on this investment. While panic and being overly concerned with fluctuations will only harm the trader on most occasions, it should absolutely be avoided in investing.

[stomachgrowls]

Tore is no prediction work in the Crypto price. And it is risk that your crypto asset portfolio will be low and can be high. If your asset will be increased then it is good but if your asset will be decreased then you will be in loss.

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

Those would really be unrealized loss and its true that as long you arent dealing with leverage or futures then you could always opt on holding and doesnt matter on how long it is and as long

you dont sell then you wouldnt loss anything but if you are dealing with other things then you wouldnt able to make out some recovery of your investment.Risk would be always there and it would
totally start up on the time that you had put up your money here on crypto space via buying those coins/project in the market.

[isaac_clarke22]

~

Imagine thinking that an unstable market would lead to easy money. Thinking crypto would be a money-maker within few days is the stupidest mindset that one could ever have. Sure there are a lot of alts out there that could be taken advantage of before the dump, but with these Metaverse and some crappy NFT games experience rug pulls, it's much more dangerous to throw in your money unlike before.

[AakZaki]

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

those who want big profits in a short time will certainly continue to be greedy and will not be satisfied. when their portfolio already has a lot of profit they don't sell some of it, they continue to hold it until the price crashes and suffers a loss.
Psychology must be controlled so as not to harm the investment made, so that the initial strategy continues to work properly. If the target has been achieved, sell and enjoy the profits. enter and exit the market at the right time and use the money that will not be used in the future for any needs.

[nurilham]

Everything in here has its own risk and one of the risks is the crypto market going up and down or unstable prices. for me, as a trader, the risk that can be obtained is the crypto market that goes up and down and as a trader, we must be able to choose coins that have good prospects to be purchased in a shorter period of time than investment. Besides that, monitoring the market is something that every trader must do wherewith it we can analyze the market well and can determine when to sell or buy crypto. But back again behind the existing risks, of course, there are benefits to be had too if we can use and manage it properly. so be more careful with this unpredictable crypto market.