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-worksI 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