Different level of risk in crypto currency trading - page 3.

Distinctin

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Quote from: DoublerHunter on October 24, 2020, 02:58:29 PM

^ For me, there are two tradings that have a level of risk. The riskiest in trading for me is day trading which is you need to monitor the crypto market 24/7 a day. The less risky is long time trading, which is I feel safe because you only have to do is wait the market becomes bullish and your profit was there. Nevertheless, when we talk about trading, it is expected that there is a risk. We should know this from the start because if you don't know how to manage risk it will end up a loss for you.

Trading is totally at risk, regardless if that is day-trading or not.

I remember one of my friends asking it before, which is risky trading or holding? I answered it both of them are risky, why? Because in crypto space, in the crypto investment we can't assure of anything in here. Guaranteed less that we can make good money in trading or even in holding because of its nature. What it makes hard for this because of its volatility. Even an expert trader could also suffer losses, how much more for a beginner, and less experience.

DoublerHunter

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^ For me, there are two tradings that have a level of risk. The riskiest in trading for me is day trading which is you need to monitor the crypto market 24/7 a day. The less risky is long time trading, which is I feel safe because you only have to do is wait the market becomes bullish and your profit was there. Nevertheless, when we talk about trading, it is expected that there is a risk. We should know this from the start because if you don't know how to manage risk it will end up a loss for you.

bitbunnny

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Quote from: pawanjain on October 24, 2020, 09:52:08 AM

The are different types of trading. Spot, Margin, leverage, Future and Options etc... requires less capital amount and gives the opportunity to win a big amount.
These types of trading also comes with a risk of losing all your capital and sometimes more than that.
This is why you see the alerts on some coins saying it is a high volatility coin.

Because of all these types of trading every trader has a choice. We can choose what suits us the most and especially what is in accordance with our apetite for risk.
Some traders are more self confident s and willing to risk more expecting also bigger profit. Volatility is something we always need to have in mind and not risk more than we can take. Bigger risk doesn't necessary mean bigger profit.

iamsheikhadil

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Actually the warning is meant that crypto currencies in general are highly volatile and change their prices very much every instant. Fiat and other stocks don't change in value so much. It's probably a warning for newbies who are investing huge amount that invest only what you can afford to lose! Else, it will be too bad a risk!

BlazingHashes

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This is my view of the level of risk
+ Spot: low
+ Trading the token from farming: medium
+ Future / leverage: high

Cryptocurrencies are a world of risk and adventure. I have /3 of my accounts since 8/3 this year, then x10 spectacularly in just 2 months, and resumed /2 recently Sad

I think I'm really bad at greed management although I told my heart a lot that this is a financial adventure, the lost, is my own soul and real property.

Xembin

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There are different level of risk in cryptocurrency trading in the environment. Trading your coins in a place that is not safe is a big risk to trader and it hard for such trader to make a good profit from the environment. Low quality is another risk of cryptocurrency trading that every trader must aware of before carry out their trading in the market. Try to understand the season is another risk of cryptocurrency trade in the market. Before trading your coins try to understand the market if there are customers who is looking for that product you are holding or not before supply .

pawanjain

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Nothing lasts forever

The are different types of trading. Spot, Margin, leverage, Future and Options etc... requires less capital amount and gives the opportunity to win a big amount.
These types of trading also comes with a risk of losing all your capital and sometimes more than that.
This is why you see the alerts on some coins saying it is a high volatility coin.

palle11

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Quote from: Hypnosis00 on October 24, 2020, 05:15:06 AM

Crypto trading is a high-risk level and I believe also that it is the same for any trading platforms.

Once we start trading, it is accepted to face the risk. I'm not sure if traders have to think about it first before getting into this field or just be thinking about easy money. No wonder why many traders have difficulties in making good trades because they are not yet equipped with knowledge and skill before then. If they consider themselves thinking of becoming a trader, they should also have to think about all the needed things, otherwise, it was an easy end for them.

No, I think most traders don't think about loss before they enter the trading business. They get more focus on gains than what they can loss while trying for gain. This is why they don't study money management. And if they study it, they don't practice it.t

Hypnosis00

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Crypto trading is a high-risk level and I believe also that it is the same for any trading platforms.

Once we start trading, it is accepted to face the risk. I'm not sure if traders have to think about it first before getting into this field or just be thinking about easy money. No wonder why many traders have difficulties in making good trades because they are not yet equipped with knowledge and skill before then. If they consider themselves thinking of becoming a trader, they should also have to think about all the needed things, otherwise, it was an easy end for them.

EdenHazard

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Quote from: CryptopreneurBrainboss on October 23, 2020, 09:58:58 PM

Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out?

Yes if only your aren't engage in other advance trading experience like margin trading. Investing just by trading on spot exchanges or buying of tokens can only cost you your initial funds in case it was a bad investment and market has declined to bring the price down. Do understand that unless the token had been delisted from all exchange or they lack liquidity that prevents your from selling since there's no buyer available, you would mostly have some funds to left in the token.

Cryptocurrencies are subjective to risk, the stablecoin aren't no different since they lose and gain value too although their state of stability gives more assurance than other cryptocurrencies out there including bitcoin.

A hyper volatile crypto market allows certain coin to go up for 10,000% and go down disappear to the dust. This is actually what most exchange warned about.
A margin trading and its leverage is indeed an advanced trading which it's not for newcomer, op seems have no idea about this though.
He might have heard his friends or colleagues telling him that they lost the whole salary in crypto + seeing those warning messages makes him paranoid.

If you compare it to the traditional market which limited the max loss to certain percentage then crypto is indeed high risk, but if you do understand crypto and had some trading experiences in crypto market.. I'd say the risk is just average.

Salauddin1994

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There are many risks involved in trading cryptocurrencies without skills about business the exchange will be very difficult that's why trading rules and strategies must be followed before trading need to try new information about the market. Knowing the updated information will make it easier to follow the price difference of the currencies also enjoy trading signals protection features that will ensure that your personal data and funds are always protected.

onecall123

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Everything has risk can go to zero, you have to deal with risk until you're going with crypto currency trading. I've been in the crypto exchanging business for some time now and I attempted many security estimation to limit the danger but nothing make me happy. I recommend you join a decent trading signal group those are providing good calls for both beginners and experienced crypto traders.

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Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out?

Yes if only your aren't engage in other advance trading experience like margin trading. Investing just by trading on spot exchanges or buying of tokens can only cost you your initial funds in case it was a bad investment and market has declined to bring the price down. Do understand that unless the token had been delisted from all exchange or they lack liquidity that prevents your from selling since there's no buyer available, you would mostly have some funds to left in the token.

Cryptocurrencies are subjective to risk, the stablecoin aren't no different since they lose and gain value too although their state of stability gives more assurance than other cryptocurrencies out there including bitcoin.

ice098

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Quote from: jossiel on October 21, 2020, 12:00:10 AM

The majority of the cryptocurrencies bear the same risk except for the stable coins. From the root word, they are stable and serves as the fiat in the crypto market.

Bitcoin is risky and altcoins too.

Defining them by level, they are the same in levels. A good basis is to look at the liquidity or volume of a coin. It will give you an idea if it's going to fluctuate that much by looking at the high daily volume. But if that coin doesn't have that much, just leave it and don't buy it.

So far i didn't encounter such that a level of difficulty when it comes in trading. For me they are just the same, the risk and the difficulty of trading crypto especially when it comes to altcoin and bitcoin. You will feel the same feeling when you are about to trade your altcoin and even bitcoin the only difference between two crypto was your level of fear. So far you would get that fear when you trade bitcoin its due to bitcoin was expensive enough to lost than altcoins.

CASTIEL05

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They displayed the warning sign that your funds is on risk, for us to be aware of what will happen to our funds. It is really obvious that the crypto itself or exchanges are warning us that they hold our fate in trading. Anytime, we may lose. It is your side if you will be lose or win trading. The risk management factor should be consider in trading. It is not as easy as what we are expecting for. Since, trading can give us money and destroy our lives, they always advise the noob for risk that they may encounter.

stomachgrowls

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Quote from: el kaka22 on October 20, 2020, 11:08:46 AM

There is no place legally able to ask for more from you, in places like robinhood which deals with real stocks and margin trading and leverages, they do ask more from you, you could spend more than you invested in robin hood and in other stock market places, you basically take out a debt for investment and not really to yourself so that makes things easier, in the end company only buys stocks and they ask the difference from you instead, and not really put money into your bank account.

So, stock market has what you are afraid of. However in crypto world people do not give their details everywhere, some places ask for your KYC but as long as you do not share your KYC they can't know who you are and that is why they can't charge you anything more than what you put in there.

Well explained buddy!

This is the difference between centralized and semi-decentralized one where crypto exchangers doesnt really have that similar scheme on what we do saw on stocks or forex brokers.

It doesnt matter if you do really deal up with leverage,spot and future kind of trades and as said, the amount that you had only put up is only the amount that you would totally loss here on crypto.

Theres no such thing about having a deep debt since you do make out some leverage or something.Good thing here is that you do able to decide neither to hold or not into your coins
until recovery.

teosanru

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Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro, but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

Let me tell you a general notion. There are various types of markets. Spot/future or unleveraged/leveraged. But there generally is one rule. The amount of money deducted from your account at the time of order is the maximum amount you can lose. What I can interpret from your message is that you are confused in 2 things. Number one is the warning on coingecko. I think it might be merely a disclaimer by coingecko implying that they don't solicit you for any trade. While on Binance you might be entering trade from a future/leveraged account. In a leveraged trade you just have to keep the margin amount of your order at time of purchase with Binance and that margin is your maximum loss but Binance will liquidate your position at the liquidation price which means squaring off your position without your approval.

Silberman

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Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro, but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

You are asking two different questions, the first is do different assets that are on the same market present different risks? And the answer to that is yes, bitcoin is way less risky than a coin being released during this year and the reason is that bitcoin is the leader of this market and it will remain that way for the foreseeable future, now for you other question can you lose more than what you invested in a particular coin? And the answer to that is it depends, if you are only buying or selling without using leverage then the answer is no, you will only lose the capital you invested in it and the warning you get comes from the fact that coingecko is probably legally obligated to put such warning to avoid being the target of lawsuits, however if you use leverage and you do not use a stop loss then you can lose more than what you invested in the coin originally.

Kupid002

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Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
.

yes that's the maximum you can lose in trading thats all of your capital that you use to start in trading .

Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro, but it doesnt appear at all cryptos...)
.

Crypto`s is highly volatile thats why you will find many warning when you plan to start trading. its normal because that Was the risk of that investment and investors should know that before start buying any coins.

shield132

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Quote from: Finn-in-web on October 19, 2020, 05:32:50 AM

Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro, but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

As far as I understood, you mean that if you invested $1000, is there any chance to lose more? i.e. you may mean that for example bitcoin's price will go into minus and you'll have to pay that debt, am I right? The maximum you can lose is the money that you invested in the beginning but on another hand:
1. You invested $1000 and got $14000. Price went to zero, you lose $14000. If price kept $1000 and then went to zero, you lose $1000. But the most curious thing is that it happens like people still trade with dead coins or there are exchanges that still carry dead coins.

Topic: Different level of risk in crypto currency trading - page 3. (Read 793 times)