Topic: How much risk in bitcoin investement ? - page 49. (Read 71568 times)

Just like other investments no one can predict the value of investment, because currently bitcoin is the best digital coin.
compared to other altcoins if you are ready to invest in investments there is a risk of bitcoin investment losing all the money because nobody gives a guarantee but can for the long term better all depends on courage gan

If someone is investing in bitcoins, there will be no loss to his wealth. From the past figures and available statics, it is clear that bitcoins recover very quickly and the price actually rise up passing all the previous peaks. The only condition for earning profits by this asset is holding on for long. Patience is the key to success in this world. Bitcoin is an evergreen currency.

That is right, you can try your risk with your money if you have a faith in Bitcoin. I advise you should not change your faith by someone, they can not help you after their advised were wrong. That is the reason I do not join many groups trading, because it can affects my opinion.

I will not believe that there is even the slightest of risk existing in lengthy phrase investment decision of Bitcoin but tiny pitfalls are present for brief term investments.

The risk is sure big so we have to understand the risk to minimize, although the risk are big but if our trust is always big then we will not worry
with our investment as for sure it will generate a great income in the future. We do not see the future but we believe the potential of bitcoin that is
why we are risking our money.

Before you can invest responsibly, it's important to take a long look at your risk tolerance -- that is, how much volatility are you willing to deal with in the pursuit of investment gains? I wish there was a simple answer to this question, but risk tolerance depends on a variety of factors, including your age, your personality, and why you're investing.

Here's a quick guide to assess your own risk tolerance, and a few pointers to help you put a plan into action.

What is risk?
Traditionally, "risk" is equated with the word "stocks" when investing. When you are enrolling in a 401(k) for example, the stock funds are generally labeled as higher-risk than the bond and money market funds. A risk-tolerant investor might set up a portfolio consisting of 90% stocks, whereas an investor who doesn't want risk might only put 40% in stocks.

While this is generally a good principle, it's not a perfect rule. As we've written before, investing in bonds can be just as risky, especially in low-interest-rate environments like the one we're in now. After we discuss what makes up your personal risk tolerance, we'll take a look at how to find stocks that meet your desired risk level.

How to determine your risk tolerance
When figuring out how much risk you should be taking, there are a few things to consider.

Your age: This is the single most-important factor in determining risk tolerance. Younger people, who have decades before retirement, can afford to take on more risk in the pursuit of long-term gains. On the other hand, investors who will need their money for retirement in a few years can't afford to withstand the effects that recessions and crashes have on high-volatility stocks.
Personality: Do you like to live dangerously? Some people are just natural risk takers, and it's completely acceptable for their investment portfolios to reflect that fact (within reason). However, if the thought of your portfolio declining by $100 gives you nightmares, you should probably dial your risk level down a few notches.
Why you are investing: If you're 30 and investing for your retirement, you have a time frame of more than three decades to work with, so you don't need to worry too much about temporary ups and downs. Conversely, if you're 40 and planning to send your child to college in a few years, you shouldn't take unnecessary risks with money intended for that purpose. Always remember the reason you're investing the money when determining how much risk you should take.
One popular rule of thumb is to take your age and subtract it from 110 to determine the percentage of your investments that should be in riskier assets like stocks. I like to modify that rule a bit -- take your age and subtract it from 110, and then adjust that number up or down depending on your own personality and investment objectives.

Not all stocks are equal
Some stocks are extremely low risk, while others are just as risky as buying a lottery ticket. Investing your retirement savings in stocks like Johnson & Johnson and Coca-Cola is one thing -- sinking your nest egg into First Solar and Netflix is quite another.

In order to get a good idea of how risky a stock is, take a look at its beta, which is a metric listed in most stock quotes. Basically, a stock's beta tells you how reactive it is to market movements. A beta greater than one means more volatility (riskier) and a beta of less than one means less volatility. For example, a beta of 1.5 means that, when the S&P 500 drops by 1%, that stock could be expected to lost 1.5%.

To put this in perspective, here are the betas of some popular stocks.

Company
Symbol
Beta
Johnson & Johnson
JNJ
0.6
Coca-Cola
KO
0.5
Wal-Mart
WMT
0.5
Amazon.com
AMZN
0.9
First Solar
FSLR
1.9
Bank of America
BAC
1.7
Netflix
NFLX
1.5
It's also worth mentioning that, just because a stock has a low (or high) beta doesn't necessarily mean that it's a good (or bad) long-term investment. It simply means that it's not a terribly volatile one. There are many other factors to consider before investing, including (but not limited to):

History of profitability
History of growth rate
Current valuation
Dividend history
Sustainability of business 
In other words, after you determine your risk tolerance, and which stocks best fit into it, you need to do your homework. Here's a discussion of some of the best low-risk stocks for the long term to help get you started.

There is such a thing as too little risk
It's also important to mention that there is such a thing as too little risk. Even if you consider yourself to have no risk tolerance whatsoever, the best move is not to simply stick your money in a savings account -- inflation alone will erode your purchasing power.

Historically, inflation has averaged just more than 3% per year. This means that if you stick $100 under your mattress, it will have roughly $40 in purchasing power in 30 years. At the bare minimum, your goal should at least be able to keep up with inflation, which even the most cautious investors can accomplish using long-maturity Treasury bonds, and similar investments that are virtually risk free.

The bottom line: There's no "one size fits all" approach
I wholeheartedly believe that stocks should make up the bulk of most investors' portfolios, as there is a huge range of possible risk levels within the stock market, and it offers the best combination of growth and income of any asset class.

There is no single correct answer to the question, "How much risk should I take on?" The smartest thing to do is to come up with a risk level custom tailored to you, and then choose your investments accordingly.

In any investment there are risks. You invest your money without knowing the final result by 100%. But many risks and consequences can be foreseen. You need to understand the technologies, processes, subtleties and ideas of what you are investing in. And never neglect all means of security.

there is always risk. Because we don’t know what can happen tomorrow. But if you wanna gamble you should try!

Risk = failure probability x damage related to the failure.

Failure probability is high, because BTC is no controlled by a central entity. Also it's highly volatile. It depends on a lot of factors: politics and social, trends, megatrends, ecc.
The damage related to the failure depends on your budget? have you invested a reasonable figure? Yes=low damage, No=high damage.

There is no investement in the world that has no risk of failure, otherwise we all would be rich. Bitcoin is among the safest invests that have a small percentage of failure. I have a friend that invested an amount of money a while ago and did not panic when bitcoin decreased to 2500$ after china ban, he bought more because he believed that it will rise up again. Now with bitcoin beating all time record and reching 5700$, he made big profits. Bitcoin is a safe investment and i intend to put most of money in it.

I think investing in bitcoin is the lowest risk.Because people using bitcoin daily and price is raising.Also bitcoin price dump but only for few days or 1 month.After that price pumping.So,you can buy 3-4 bitcoin and if you can hold it for long term then you will be a millionaire within couple of years by holding 3-4 btc.

In quite investment decision there is presently a danger it is count on you then if you go for investment decision or not, Bitcoin for me is a very good expenditure simply because the market worth is nevertheless increasing and this is great for prolonged phrase expense.

we only can predict the price we cant know for sure how will be bitcoin in the future . so i advise you. If you invest in bitcoin. invest 30-50% of your assets

There is risk in every kind of business and investment. There is only one thing which can minimize the risk level and that is none other than your own good knowledge level and skill set. More learned you are, less are the risk chances.

So bitcoin investment itself is not risky but you need to deal with bitcoin in a very careful manner. Only then you can avoid the chances of loss.

If an investor is in for a long period of time, there is somehow little to no risk involved because Bitcoin value is growing everyday.  The market is getting bigger and bigger and more area and country are being covered.  But if you are in for a short period of time, I can say there is a huge risk involve because bitcoin is highly volatile and within a short period of time may take a dip and recover after that. 

I think the level of risk on investing bitcoins is very low. Because I read a lot of prediction coming from the different blogs and statements that the value of bitcoin will become high in the year 2018 specially now the China will come back in cryptocurrency. Honestly it is the best time to invest bitcoin, me if I have enough money I will invest also.

The biggest risk if bitcoin investment is considered illegal activity by the government, it will kill all the financial assets of users, is very vital and we must face risk, if it refers to some medium risk then it seems the same as the risk on other online business. (excluding HYIP schemes and pyramids).

there is always a risk. but it is better to invest in bitcoin than other cryptocurrencies.

Price ups and downs is a part and parcel of bitcoin economy and even if the price crash it will bounce back in future and the same thing we have witnessed many times in the past so I don't think that there is any risk in investing money in bitcoins if you can afford to hold it for the right time.

This definitely means the volatility is never the risk but a sign of strength because at any moment in time whenever bitcoin prices tumble it bounces back strongly and surpass the previous highest rate. I don't think it's going to be different going into the future.