How do you manage risk in crypto currency

[Rockson1]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

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[cryptoaddictchie]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

Im not sure if this can be specifically quantified for risk assesment it will always depend on your budget. If you are a trader whose fund for example is $100, and you dont want to get burn a lot. Then use that to buy a particular stock. Now if its value goes down beyond your  loss assumption let say 20% only then at $80 just sold it. If thats your allowable money to risk with. Depends on your apetite actually and time for this kind of loss. But if you are an investor, you should not look into prices like traders do cause you are doing long term. Even it goes down more than 50% just leave it. You are investing for long term goal and dont mind the drop.

[BitMaxz]

I think to calculate the risk you need to learn about fundamental analysis and learn how to trade before you can able to calculate the risk.

There are lots of guides out there to learn how to trade but if are lazy to use search button you can use this link below it should be enough all you need is already there.

,- https://github.com/SpiralDevelopment/Awesome-Crypto-Trading

[Mr.right85]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

I don't know how much you like to read but, being in a discussion platform where most of what we do is verbal communication, i take it that you are cool reading and i think, you ought to read some books on finance to get insights on how to handle your financial activities.

I'll recommend "The richest man in Babylon by George Clason" and "Rich Dad, Poor Dad by Robert Kiyosaki".
There are several tips to money management and how to sort put investment opportunities or how to invest at large.

When it comes to trading?
It's generally analysis as per what's cool with you. I don't know what to really say to you on this one but, you've got to study the charts and when your not fully convinced on the signs and your indicator don't seem to hit it just right, you could just jave to let it slide.
Also, in the event of a lose, double thoughts could mean, leave the market. You have to agree or just don't.

[drwhobox]

I did trade crypto some years ago, and it did not go well for me. I used to buy a lot of new shit coins then, and most of the time, I sold them either at a loss or the coin got out of the market. But I had never put all my investments in one coin, I split them between some "good coins" and played with the rest. Also, you need a good budget to start trading, you can't even focus on risk management if you have only 100$ or 200$ in your account.
In my opinion, 1000$ is the standard amount if you want to start trading with proper risk management and planning, don't take my words as an investment suggestion, do your own research.

[fadhilz123]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

I very rarely calculate risk management in cryptocurrencies, but I always try to minimize the risk by implementing the following methods;

• In one investment product, it's better not to put all your funds, but you can have a diverse portfolio.
• Then, you must be calm when facing investment risks that occur.
• So, avoid panic as much as possible, because panic will make you wrong when making decisions.

In essence, when you invest in any product, there will always be risk. Therefore, you must be able to understand investment risk management well. And you can also recognize several types of risks on this Source: ocbcnisp.com

[suzanne5223]

For crypto investment. The first risk management is excluding shitcoin go for the best crypto investment which is Bitcoin, using the DCA investment concept based on your earning, and taking your crypto off the exchange.
For crypto trading, I believe the below link will help.
https://cointelegraph.com/trading-for-beginners/a-beginners-guide-to-cryptocurrency-trading-strategies
https://academy.shrimpy.io/post/risk-management-guide-for-crypto-traders

[bitbollo]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

Just avoid any trade or action that you dont understand all implications. Avoid "get Rich Quick scheme" or 99.99 % of crypto coins on the market. But probably the "real" first of all be ...ready to learn and later be ready to earn!

[tech30338]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

I just consider three things to manage the risk in crypto:

• Never spend money in crypto that is for your family, bills, and monthly expenses
• A profit is a profit small or big, always take profit
• Never gamble everything always have some extra, for other coins

These things might be a little straight forward but this will help you a lot in the future, and will not put your love once at risk.

[dansus021]

You can search on youtube or google but here is mine.

1. Using "Cold" Money -> meaning money that you can afford to lose
2. Always Do your own research some youtube or crypto influencer is "Shilling project " <- They get paid for doing so.
3. Fundamental First and then do technical analysis believe me some news out there can shake the market even if you good technical analysis
3. Only using 2% max 10% of the balance when doing entry or buying coin/token
4. Greed and Fear are always your enemies Know when to take profit know when to take stop loss
5. Have patience, Calm, and pray 

[mk4]

There's no one-size-fits-all formula for this knowing that every single one of us here have different risk tolerances and different financial situations. Maybe start out with not investing money you can't afford to lose.

[HajiBagi]

It's good you ask about how to manage risk in cryto currency,although you have to believe and know more about investment, investing in cryto currency isn't too difficult, but the first thing you need to understand is that you can hold your coin for a long period of time due to the dumplings, and also know the type of coin to invest and invest a little bit of money, like during your investing, out of your 100% funds invest 60% or 70%, don't invest all of your funds and remain cashless, cause of your financial problems.

[Jawhead999]

For investor:
If you hold Bitcoin, the risk is very low.
If you hold shitcoins, the risk is very high.

As for trader it's subjective, you can trade Bitcoin or shitcoins, but you need to accept 100% lose if you want to trade with shitcoins.

I think it's really stupid if you want to invest in shitcoins because there are a lot factors can make you will lose all of your money e.g the coins is scam, the coins got hacked, can't survive in bear season etc.

[CryptopreneurBrainboss]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

Personally I don't follow anybody recommendations instead I develop one for myself. I believe the industry is still very new for there to be any qualified professional to seek advice from. Most of the risk management guides are quite a general knowledge that you get from other markets like the stock, forex market or life in general. For example, you should never invest in what you don't understand or invest more than you're comfortable losing just incase the investment was to go wrong. You can always development a guidelines that works for you based on your own financial capabilities.

Is okay to make mistakes along the way and correct then as you get more experience in the market. This mistakes should build you instead of breaking you that's why you have to make sure this mistakes aren't too expensive ones like storing your coins on exchanges or using centralized wallets that can be easily hacked. One risk management I deploy is my investment in Bitcoin. It's okay to explore the market but always make sure you never neglect Bitcoin.

[Eternad]

Please I want to know the risk management in cryptocurrency an how to calculate them for both investor and trader.

Having an exact calculation is impossible to provide because of crypto volatility. Also you should provide your risk tolerance since risk management is highly dependent on your tolerance. The best to have this kind of calculation is to consult a financial advisor especially if you are investing significant amount of money.

Asking random people without any idea on your portfolio and risk tolerance is useless because we have different preference based on our risk tolerance. My own risk management will not gonna work with same with others.

[kamvreto]

it seems everyone has explained at length about how to manage risk in cryptocurrencies, but the OP didn't appear after a lot of comments. does the OP still need more comments and better suggestions?
and you can be sure, to manage risk for each trader will be different, because the needs and abilities of each trader are different. this would be a more complex solution answer. Your OP should do some research first and decide which management strategy you are going to use.

[Outhue]

There is nothing to calculate here, invest only what you can afford to lose, that's the perfect risk management, either investing or trading, always know your limit. Imagine you worth a 10,000$ in your bank account and you play around with 100$ on crypto, how will that hurt if anything goes wrong? You lose money but not your life savings, take risks with very low amount of money.

The safest crypto investment is Bitcoin, others are riskier.

[Daniel91]

First of all, be well informed about your investment and learn how to analyze the market. These are the basics of any investment.
Based on your analysis of the market situation, invest your free financial resources, but be aware that any investment is always risky and that there is a real possibility of losing money.
Before investing, you must make a financial investment plan and have a clear exit strategy.
It is recommended that you never invest all your money in one investment, but diversify your investments, usually into different asset classes.
So, invest something in crypto, something in stocks, real estate, gold, business start up etc.

[Zilon]

Risk management first start with knowing how much an investor is willing to lose, how much profit is fine per investment and when to pull out of the market to avoid been stuck. When this is defined it will be easier to manage portfolios and profits that comes with it.

Once an investor is conscious of the fact investment is all about profit and loss. Even the bull market won't be overwhelming, not to the point of getting trapped in the market. But in real sense risk management differs per individual because we all can't investment with the same amount of capital and everyone has their portfolio preferences.

[hugeblack]

Risk management is a term used to refer to many practices that lead to reducing the possibility of losing your money, and it is an assessment of the extent of the risk that you intend to invest in.
First of all, you must learn the basics about how Bitcoin works and how to secure your account, which includes how to create a wallet, cold storage, reduce transaction fees, and choose a good platform with reasonable fees.

Then comes the diversification of investment, which is not to put eggs in one basket so that you diversify your investments in many sectors such as gold, real estate, stocks, and others.

Then invest only in Bitcoin and avoid investing in alternative currencies if you do not have enough knowledge.
And managing psychological factors, which are greed, fear and greed.