Topic: Coping with Risk. - page 9. (Read 1354 times)

For me, there is no risk in investing in Bitcoin. Since the creation of Bitcoin until now, we rarely or almost never hear about core wallets being hacked. Core wallets or Bitcoincore are designed to store Bitcoin. Hacking incidents may occur on exchanges or other wallets developed by third parties, but they are not related to the fundamental development of Bitcoin. Meanwhile, the loss of phrases or private keys is due to the carelessness of the Bitcoin user.

Investors who invest a large amount of Bitcoin may not store it on exchanges because there is a high possibility that exchanges may be suddenly closed by their owners.

I actually think that physical business activities are riskier than online investing.

Online investment only requires carefulness and not placing assets in one place with a large amount. If we have some Bitcoins, we can trade in several different trustworthy exchanges.

For me, both have the same level of risk. You may not believe it but that's a fact. Anything that can lose you money (whether fiat or cryptos) is risky and the level of risk depends on one's commitment and how much is invested. I've a long history of most of those around me not wanting to have anything to do with online investment. To these ones, anything online is a scam. Their mindset is already sealed on that.

Let me share this short happenstance, and I know some of us here may have similar experience. A few years ago, a man bought a shop outright (not lease) in a popular market in my state. Unknown to him that the market was to be demolished in less than a week's time. That was an offline business, yeah? Yet the man suffered great loss. He almost passed out.

All risk is risk and none can be considered lesser because they all involved money and for that you wouldn't want to lose your money for anything such is online business, as a businessman or woman you would always wants to run a business that could be so suitable to you without incurring any much risk.

To me choosing business to run that involves lesser risk depends on your capabilities to handle them, if you are good in physical business and you know you can handle it properly then you can go into that because I believe no business that doesn't involve risk but if you think you are a guru in online business and can manage the risk associated with it why not you go ahead than being confused.

Though online business is less stress free than physical business where you over work yourself to gain a little profits meanwhile you can just invest in bitcoin and have a better place to store your seed phrase while your investment keeps growing without you having to over work yourself as physical business that is the advantage online business has over physical businesses.

If it can be practiced according to procedures that can strengthen security and comfort, then both types of business are worth running.

For me, the risk level of online investment is greater than the risk level obtained in a physical business.
In my opinion, fires, floods and other events that are beyond our reach are not something we want and in the context of physical business I do not consider them to be major risks but I consider them as disasters. Like it or not, it has to be accepted.

The risks of online investment, if seen from several hacking incidents, may still be prepared from the start so as not to lose a lot of assets.
If the initial preparation means investing like Bitcoin, then carefully guarding the seed phrase and private key is the solution. In other types of online investment, I think initial preparation steps to avoid criminal activity can also be carried out in accordance with security needs.

Actually, it's the same, online or offline, physical and non-physical, crypto, shares, property, real business, everything has the same risk. We as owners simply minimize the possibility of that happening. In real business, dealing with fires, work accidents and other things can be minimized by having an HSE section. For online businesses, the risk of hacking, data theft, scams, etc. can be minimized by educating yourself about cyber data security. It is impossible to do business without risk, the bigger the capital, the higher the risk, the bigger the return. Basically, if you ask which is more risky, both are risky depending on how much capital and the size of the business.

First of all, these are two different things and their mode of operation is different too. Business is about generating profits either by selling things or offering services and investment is using money to generate a profit automatically over time. We are not here to compare after all but I'm trying to make some clarification for better understanding. Coping with risk required one to identify and assess the risk and once you are able to do these, you can develop a risk management plan to mitigate those risks identified. With this alone, it's very obvious that physical business has more risk than online investment.

Although, they both have their own unique risks and measure to curtail the risks. Most of the risk associated with online investment can be avoided through precaution measures like conducting a comprehensive research before investing, using a very secured wallet, protect your wallet seeds the same way you'll protect your life. In physical business, you can practice all preventive measures to avert some of the risk involved like theft, damages etc but you can not predict the natural disasters.

However, the best way to go about it is what the first reply on this thread suggested. Diversification is the best approach to employ this days since engaging in one does not stop the other. Online investment is very soft and easy to engage in and you can focus on your physical business at the same time.

There's nothing stopping any business person from doing both, physical business requires your physical presence to run it, while online investment can give you ROI without your breaking a sweat, so the same person can conveniently do online and offline businesses. The important thing is to learn and understand the risks associated with any of them, crypto investment is risky, and to minimize it the investors needs to invest in a reputable cryptocurrency like Bitcoin, they only need to protect their coin by holding it in none custodial wallets, protect their seed phrase from getting lost or being compromised, to avoid stealing their Bitcoin. The online investment doesn't stop your day job or business, you need to understand the risks involved in the physical business and guide yourself against it.

I'm trying to look at the two and the risks that are involved in them. I'm more relaxed with online business whose challenges I see as getting hacked that is if you expose your wallet phrase or payment portal but physical business too apart from other challenges faces scam.

Some of the challenges of physical business is that someone can also scam a physical business operator, spoilage, traffic delays plus bad government policies from government against that area of your business.

So I prefer online business arrangement where you only need to worry about hack and not scam because scam cut across the two types of businesses and the panacea is being careful and vigilant.

Do you think your bank accounts, PayPal accounts, securities account can't be hacked? even it's reversible, do you have an experience they refund your money?

Lost, misplaced seed phrase, send to wrong address are your own fault, you can send fiat to wrong account too in banks.

All of them are prone to bankrupt, while Bitcoin can't.

Everything has a risk, you're live in this world also have a risk to sick or die.

There are different risks involved in managing a physical business or investing online. It depends on the person's skills and experience in either field. Some individuals may excel in managing a business but have limited knowledge of online investments, while others may have the opposite strengths. The decision on which avenue to pursue should be based on what the person feels most comfortable with and where they believe they can achieve success. Both options are viable but come with high risks.

Its has both cons/pros and I don't think you can leverage physical or online business in terms of risk. For me it's how you adapt on those risk or mitigate it. For example, during the pandemic, most business went online and there are really that flourished during the pandemic, like the food business because would just order online. But now that we are back to normal, at least locally, I see those who uses to flourish that time is struggling, to the point that most of them have close their stores because the customers that used to buy them can now go out.

And definitely, the competition as well, both business are very cut-throat, unless you find a niche that hasn't been congested or less competition. But in online or even physical store, there are a lot that is competing for customers and maybe that's one aspect you have to look as well in order to survive.

Every business has risk whether offline or online, the best way is to learn how to manage your Risk, for the online investment like Bitcoin it is best advice you always keep your seed phrase in a closet or a place that is very safe, and also use wallet that are well-known to be safe so hackers won't find you, because it's yours investment and should be guided at all cost.

For the physical business, you have to find a way of making sure  insurance covers it, should incase of fire outbreak, theft or any unforeseen circumstances that might happen in the future. in doing so you've been able to manage the risk involved in your physical business.

Diversify. If you like offline business, go for it. That does not mean you can not invest online. Both are good, it depends on the nature of the work. But learn about what you want to do very well before you start.

Do not go for the ones that are risky like putting your coins on centralized exchanges, you can hold the coins on a cold wallet instead and have full control. Also go for a better coin like bitcoin and not shitcoins.

We know that regardless of the prospect of any business or investment, understanding the risk involved in the business is an integral part of the consideration one should consider before venturing into the business and when it comes to bitcoin investment, it's very basic yo know that the major risk associated with it are just a few of the ones below which could either be issue relating to hacking, lost or misplaced seed phrase or possibly sending your crypto holding to the wrong address considering it irreversible nature.

In our normal business we have risk also that are damn much which could range from fire outbreak, stealing, bad market, spoilage and lots of other factor that makes starting a physical business very risky and to have high possibility of yielding great loss.

so my question is, which is more risky?

A). Running a physical business that has a whole lot of risk associated with it or

B) running an online investment with high risk of hack that could result in you loosing all your asset.