Risk in Crypto Assets Portfolio

[dunfida]

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.

Greed must be controlled and you should have set your own goals in the first place on what price and when you would be securing out your profits but we couldnt really blame out others on having  that kind of HODL
kind of mindset since we know that if a potential project is on your portfolio then you would continue or keep on believing on it that it would be worth on hodling for long term which some people do mind off
but majority of them are really greedy or do comes after for the high price and not actually into its true relevance or potential and thats why we do really have these kind of mistakes
that have been done.

[LUCKMCFLY]

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.

Well, when we talk about the btc market, it is very common for us to meet people who do not have much knowledge about the speculative market, whether it is about BTC or the stock market, forex, among others, the laws are going to be almost the same, You must have a financial education to understand the market, to understand the difference between market speculation and investment, which many when they enter the market mix these two concepts and make mistakes because it leads them to failure and make bad decisions, this is where they lose money and it is not the duty to be.

[TheUltraElite]

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.

The loss is suffered only when the coins are sold and not when they are being held. With bitcoin this chance of suffering a lose is less too. Again this will depend on the trader's mindset being made of nerves of steel, in which case they will accept movements as opportunities and not gains/losses.

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.

Truely, selling and buying back must be done. But most traders fail to do at the proper time, in which case just hold, it will end up being the same.

Again this is the way the market weeds out the weak hands and only the composed diligent traders remains. Patience is important here, but being able to hold till the price reaches and then taking the chance to sell is equally important.

[TheUltraElite]

Greed has become a human trait that seems to stick to every human being. sometimes people who already have knowledge about investing, they also still feel greed even though they understand that things like that are wrong and shouldn't be done, but many of them violate it. and to be able to control it we must be able to communicate with ourselves and keep practicing

Greed is an emotion and it can be controlled. There are subjects who are prone to greed more than others, just like some of have a bad temper and get angry at little things, but such people need to train their minds to stay in control and not let greed take over, otherwise they need to stop trading for a while.

To be honest, such people dont last long either. They will get washed away while trying to make more and more and will be a small speck of dust in the trading timeline. Those who survive this game are the ones who are diligent and have controlled their emotions to not be greedy but be frugal.

The gambling mindset should be changed for this to happen. But there will always be some newbie willing to take the risk and become food for the whales.

[Mauser]

Greed is an emotion and it can be controlled. There are subjects who are prone to greed more than others, just like some of have a bad temper and get angry at little things, but such people need to train their minds to stay in control and not let greed take over, otherwise they need to stop trading for a while.

To be honest, such people dont last long either. They will get washed away while trying to make more and more and will be a small speck of dust in the trading timeline. Those who survive this game are the ones who are diligent and have controlled their emotions to not be greedy but be frugal.

The gambling mindset should be changed for this to happen. But there will always be some newbie willing to take the risk and become food for the whales.

I agree with you, the market tends to wash out traders that don't have the right mindset. Being controlled by emotions makes usually bad investment decisions. We can't listen to our stomach when to buy and when to sell. Greed is one of the worst emotions a trader can have, because it lets us focus mostly on returns and how to maximise them. But once we focus only on returns we tend to forget about the risks we are taking to achieve that returns. The chances of blowing becomes a big issue for too greedy people, similar to playing in casino and never stopping after a big win, until all the money is gone again. It's much easier to lose money than to earn it, that is why a good investment portfolio should focus more on the risk than on making the maximum possible returns.