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Topic: How to understand risk in crypto - page 7. (Read 2479 times)

full member
Activity: 602
Merit: 100
July 12, 2019, 04:07:28 PM
I followed the link to the site from the message of the author of this topic, saw the chart of the bitcoin price. But why this graph presents 2018? After all, now 2019 year. It's strange and not very true. The fortune teller assumes, but the market maker decides. Wink
sr. member
Activity: 686
Merit: 282
July 12, 2019, 03:00:06 PM
The best way to understand the risk is to face it. Once you feel the loss you will understand the consequences and how important is to estimate your limits and be aware that cryptocurrencies are not only profit and that every investment takes certain amount of risk.
Cryptocurrency is a lottery and there will always be a risk. Only by getting to know the market well can you avoid it. You have to learn from mistakes. And do not do them again ...
jr. member
Activity: 378
Merit: 5
July 12, 2019, 12:24:55 PM
*****************UPDATE*******************

Thanks so much everyone for your opinions and views!

I am setting up a complete redesign of the site, and I will be back in around a week with all new research and probing bitcoin questions.

The site will be down while I make all the upgrades and rebalance the scales.

Bitcointalk is one of the few places where you can go to meet crypto people. I am honored to speak and share my data and views with you all!

Love and hard work,

Aaron

******************************************
full member
Activity: 756
Merit: 105
July 12, 2019, 05:01:44 AM
Here is an overview of how to find and UNDERSTAND your risk while investing in crypto. If you want to see how it works click this link:

https://www.amsinger.org/how-it-works

I have previous posts on here explaining an optimal entry point based on fundamentals on Feb 7. This is an explanation of May 2 to May 27.

Creation Cost - The variable cost it takes to create a bitcoin

On May 2 BTC risk hit its lowest since February. BTC was 15.1% above its price floor This is a rare and likely profitable situation. The price floor represents the price at which whales start buying due to the natural cash flow of cryptocurrency. It represents the point of strongest buying capability in the market.

On May 27, after the 59% price spike, the risk level increased to 55.5%. The price had virtually no support and due to the high price every miner and holder with any awareness of risk levels was selling and not holding.

I created fundamental analysis in order to provide my clients the information that they need to measure risk and understand the crypto market. With the fundamental price floor you know automatically if the price is low or high. $3000/BTC was INCREDIBLY high 4 years ago, $3000/BTC now is a mortgage-your-house steal. With price floor and cash flow analysis my clients know when the market is high and when it is low.

I truly hope that you find this information useful to you. I made this because of the pain I felt in Nov 2018. I needed to know why it didn't go to zero, and I found the price floor.

Aaron

Helpful Links:

https://www.amsinger.org/sample-analysis - 25-Day price floors and cash flow

https://www.amsinger.org/open-research - Research and data covering why Feb 7 was the optimal time to buy





We all know that every investment has a profit and at the same time there is a loss. risk (loss) is one of the elements incorporated in the business (buying and selling coins / trading) that is inseparable. By having good risk management and capital management, of course hoping to help minimize all risks to be able to adapt to the wild market.

By applying the risk management that comes is to maximize the chance of greater profits coming. The trading strategy is to carry out trading activities continuously, in this case the problem is to sell at a higher price than when buying and doing it regularly, but in trading we need a solid strategy to read where the market will move. test by predicting the movement of coins.
NB: players can start trading when the trend of the price of coins is going up / down, because what they are looking for is selling higher to buy when it's cheap for long-term hold.

There is not a single professional trader who skips risk management in his daily routine. In crypto trading, there are some specific tips for better managing risk management, some examples are:
Don't overtrading
Determine Your Risk Level
Use Stop and Limit Orders as Needed
Calculate your Risk / Reward Ratio
Control Fear
member
Activity: 616
Merit: 30
July 12, 2019, 03:17:00 AM
I think that the risk in the cryptocurrency market is not 50 to 50% of winning or losing, but perhaps 99% plus 1. Only you will win, or you will actually lose.  First of all, it is the volatility of cryptocurrency that increases the risk for each investor.
It depend on what investments you do in crypto mate,because if you are willing to wait and trust bitcoin then the opportunity of losing will turns a little not like if you do daytrading or short terms.thats what I can vouch in my years in this market
jr. member
Activity: 420
Merit: 1
July 12, 2019, 02:20:04 AM
Consider the main risks of investing in virtual currency:
1) Theft or loss by negligence
If any attacker gains access to the investor’s private secret key, then he can steal all the contents of the digital wallet.
2) The risks associated with cyber security
Hackers can crack virtual currency trading platforms.
3) Virtual Currency Fraud
Since the creation of Bitcoin, its adoption has grown exponentially, making it the most popular virtual currency used throughout the world. Unfortunately, with the increasing popularity of cryptocurrency increases and the number of scammers who want to make money on it.
4) Lack of consumer protection
The unpleasant fact is that Bitcoin does not provide any consumer protection. Completed transactions can no longer be undone. All you can do after a failed transaction is to try to convince the recipient of funds to voluntarily return them. This is due to the fact that there is no guarantor-intermediary, as is the case with bank cards.
5) High volatility
Bitcoin value fluctuations are, in general, practically unpredictable in the short term, and this adds riskiness to it. Financial experts can relatively accurately predict the value of the dollar, the euro and other real currencies or stock quotes. But no one can predict exactly what the cost of Bitcoin will be tomorrow.
jr. member
Activity: 378
Merit: 5
July 11, 2019, 04:49:38 PM

Cryptocurrency, for some people may still be unfamiliar when they hear it. Cryptocurrency or crypto currency is a digital currency or has no form and is predicted to replace fiat currency because it is considered more profitable.Because crypto prices are fluctuating depending on market demand, and because the number of crypto is limited so that it will not experience inflation. Crypto trading is one way to invest by making transactions to buy, sell, and trade crypto assets that produce a difference as a profit. People want their investment to always go up, this is natural, but there is no guarantee that crypto will rise. Crypto is unpredictable, and this is precisely what causes people to be interested.
My advice, buy the crypto amount that you like in an amount that is not too large and don't over think it. If possible, do the transaction in crypto, asking that you be paid with crypto. This is another way to get crypto without retail prices.
Beginner investors should start investing in small amounts.  If you want to understand the risk of crypto, then my advice is you have to take part, so you can study and participate in an initial coin offering (ICO).

Isn't it better to use data to help you make those decisions?

https://www.amsinger.org
member
Activity: 630
Merit: 10
July 11, 2019, 03:41:12 PM
I think that the risk in the cryptocurrency market is not 50 to 50% of winning or losing, but perhaps 99% plus 1. Only you will win, or you will actually lose.  First of all, it is the volatility of cryptocurrency that increases the risk for each investor.
full member
Activity: 756
Merit: 105
July 11, 2019, 11:22:28 AM
Here is an overview of how to find and UNDERSTAND your risk while investing in crypto. If you want to see how it works click this link:

https://www.amsinger.org/how-it-works

I have previous posts on here explaining an optimal entry point based on fundamentals on Feb 7. This is an explanation of May 2 to May 27.

Creation Cost - The variable cost it takes to create a bitcoin

On May 2 BTC risk hit its lowest since February. BTC was 15.1% above its price floor This is a rare and likely profitable situation. The price floor represents the price at which whales start buying due to the natural cash flow of cryptocurrency. It represents the point of strongest buying capability in the market.

On May 27, after the 59% price spike, the risk level increased to 55.5%. The price had virtually no support and due to the high price every miner and holder with any awareness of risk levels was selling and not holding.

I created fundamental analysis in order to provide my clients the information that they need to measure risk and understand the crypto market. With the fundamental price floor you know automatically if the price is low or high. $3000/BTC was INCREDIBLY high 4 years ago, $3000/BTC now is a mortgage-your-house steal. With price floor and cash flow analysis my clients know when the market is high and when it is low.

I truly hope that you find this information useful to you. I made this because of the pain I felt in Nov 2018. I needed to know why it didn't go to zero, and I found the price floor.

Aaron

Helpful Links:

https://www.amsinger.org/sample-analysis - 25-Day price floors and cash flow

https://www.amsinger.org/open-research - Research and data covering why Feb 7 was the optimal time to buy




Cryptocurrency, for some people may still be unfamiliar when they hear it. Cryptocurrency or crypto currency is a digital currency or has no form and is predicted to replace fiat currency because it is considered more profitable.Because crypto prices are fluctuating depending on market demand, and because the number of crypto is limited so that it will not experience inflation. Crypto trading is one way to invest by making transactions to buy, sell, and trade crypto assets that produce a difference as a profit. People want their investment to always go up, this is natural, but there is no guarantee that crypto will rise. Crypto is unpredictable, and this is precisely what causes people to be interested.
My advice, buy the crypto amount that you like in an amount that is not too large and don't over think it. If possible, do the transaction in crypto, asking that you be paid with crypto. This is another way to get crypto without retail prices.
Beginner investors should start investing in small amounts.  If you want to understand the risk of crypto, then my advice is you have to take part, so you can study and participate in an initial coin offering (ICO).
full member
Activity: 1638
Merit: 122
July 11, 2019, 08:33:07 AM
I think everyone should be aware that the cryptocurrency market is really very risky. But in this market it is possible to make a lot of money if you take a risk. The most important thing is not to lose your head and not to get into debt and loans
the reality is still, everyone can't understant what risk they have do when invest on crypto and fud every where when loss them money

not everyone  . most of us do already understand what is risk on cryptos but there are few that enters instantly without knowing the risk what they will be facing .   understanding the risk is easy , all you gotta do is read the definition of cryptos  . you will see that cryptos are volatile or unstable  .

after that , you will only learn how to apply this   . applying is the difficult thing of them all  and this is why most of crypto users fail   .
member
Activity: 87
Merit: 40
July 11, 2019, 08:25:33 AM
All things in our lives carry their own risks, especially in cryptocurrency. I think cryptocurrency is an investment that can be categorized in the high-risk investment. The risk is something that cannot be avoided, but we can minimize it by researching the projects or coins that we will follow or buy. Starting from the white paper, roadmap, team, benefits of the coin, the market to be entered and many more. Sometimes after everything looks good but in the end, we still have to bear a bad risk. That often happens. But at least we have tried to manage all the risks that will occur and prepare to face the worst risks that might occur.
sr. member
Activity: 1204
Merit: 388
July 10, 2019, 09:27:56 PM
I think everyone should be aware that the cryptocurrency market is really very risky. But in this market it is possible to make a lot of money if you take a risk. The most important thing is not to lose your head and not to get into debt and loans
the reality is still, everyone can't understant what risk they have do when invest on crypto and fud every where when loss them money
jr. member
Activity: 378
Merit: 5
July 10, 2019, 06:22:24 PM
Crypto's too volatile market that's the main risk. It's even more than the risk in the traditional market.

Crypto gets less volatile the closer it gets to the creation cost. The volatility was exceptionally low from December to April, when the price was being supported by the miners. Check out the graph here:

https://www.amsinger.org/how-it-works

You can see the increase in volatility in the 2017-2018 market.
jr. member
Activity: 40
Merit: 10
July 10, 2019, 06:10:16 PM
Crypto is the risk. And any investment is the risk.
jr. member
Activity: 60
Merit: 3
July 10, 2019, 06:06:15 PM
Crypto's too volatile market that's the main risk. It's even more than the risk in the traditional market.
jr. member
Activity: 378
Merit: 5
July 10, 2019, 01:12:07 PM
I think everyone should be aware that the cryptocurrency market is really very risky. But in this market it is possible to make a lot of money if you take a risk. The most important thing is not to lose your head and not to get into debt and loans

The most important thing is to make money in bitcoin. Your mindset is the mindset you would want in cattle headed for the slaughter house.

I want people to be aware of their risk, not wish on stars.

Aaron

https://www.amsinger.org
full member
Activity: 602
Merit: 100
July 10, 2019, 11:37:59 AM
I think everyone should be aware that the cryptocurrency market is really very risky. But in this market it is possible to make a lot of money if you take a risk. The most important thing is not to lose your head and not to get into debt and loans
newbie
Activity: 1
Merit: 0
July 10, 2019, 03:28:04 AM
this is a good piece of advice to many who do not understand crypto currency risks.
jr. member
Activity: 378
Merit: 5
July 09, 2019, 02:50:52 PM

But what I know is that most people who have experience in the Crypto field are still playing privately hidden, to teach others about the risks that beginners will get, so for beginners it's very difficult to find someone who is more experienced about the crypto world, what else do they play privately not too public, surely in each country has a different role, to introduce Cryptocurrency to everyone, of course there is a better solution for them to start !!

This is a big reason of why I started my site, and have been making threads about understanding not wild predictions. So many people get lucky or unlucky and extrapolate nonsense from that.

Crypto is a lonely game, we don't usually have people to talk to about it, so it is more difficult to benefit from other people's wisdom.

https://www.amsinger.org/how-it-works

Aaron
member
Activity: 512
Merit: 11
July 09, 2019, 02:17:34 PM
It seems to me that the entire cryptocurrency market carries with it a big risk due to large fluctuations in cryptocurrency prices.  I think that many users of cryptocurrency faced a problem when you hope for one thing, but in reality you get something completely different.
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