Minimizing risks in trading may seem impossible since risk is a natural occurring factor it will be hard trying to minimize risk in trading as far as I know what I think will help would be simply trade with the amount you can afford to lose this doesn't mean a huge amount start off with little at first and see how the market structure is but truly there are no sure ways to minimize risks in trading that I know for sure
Trading is often uncertain and everything here is very much dependent on the volatility of the market. In fact, the risk is inevitable when you enter this market, but to limit those risks, you need to have the knowledge and reasonable strategies to avoid losing money when trading. No one is born a good trader and if you want to be an expert then you have certainly experienced a lot of difficulties in the past. 
Topic: Minimizing the risk- How much possible it is? (Read 842 times)
I personally always consider long-term investments in the highest-rated cryptocurrencies, but I use for daily trading those moments that have a rating below the first Top ten coin market. I understand that I am in a risk zone, because I am dealing with cryptocurrencies that are in a risk zone, a decrease in liquidity. Of course, I constantly monitor trading volumes, but for some reason it seems to me that this is the main problem that I and the same traders who do not have enough experience can encounter.
Based on this, I believe that it is always necessary to minimize the risks of a decrease in liquidity by choosing more reliable coins for trading, and you should also begin to pay attention to the regulatory framework of certain countries whose coins you are trying to trade. The fact is that cryptocurrency is becoming more popular and states are beginning to more closely regulate the turnover of cryptocurrencies and this, in turn, can greatly affect the pricing of certain cryptocurrencies.
Based on this, I believe that it is always necessary to minimize the risks of a decrease in liquidity by choosing more reliable coins for trading, and you should also begin to pay attention to the regulatory framework of certain countries whose coins you are trying to trade. The fact is that cryptocurrency is becoming more popular and states are beginning to more closely regulate the turnover of cryptocurrencies and this, in turn, can greatly affect the pricing of certain cryptocurrencies.
There are people who diversify their investments with different assets/coins to minimize their risks of losing money, but sometimes it can be really disappointing, especially with altcoins. Altcoins can make you lose your money more than Bitcoin will make you.
The volatility with altcoins is usually worst. They do go up when the price of Bitcoin is going up and when Bitcoin crashes theirs is always more than Bitcoin. But you can still try diversification, but don’t be like those that buy lots of coins like twenty coins that they know nothing about. If you want to trade you should only trade few coins that you know very well.
The volatility with altcoins is usually worst. They do go up when the price of Bitcoin is going up and when Bitcoin crashes theirs is always more than Bitcoin. But you can still try diversification, but don’t be like those that buy lots of coins like twenty coins that they know nothing about. If you want to trade you should only trade few coins that you know very well.
Minimizing risks in trading may seem impossible since risk is a natural occurring factor it will be hard trying to minimize risk in trading as far as I know what I think will help would be simply trade with the amount you can afford to lose this doesn't mean a huge amount start off with little at first and see how the market structure is but truly there are no sure ways to minimize risks in trading that I know for sure
It depends on the effect of your plans especially in the worst situations ( big dump ). In addition to that, it is better to focus on the best cryptocurrencies in the market ( TOP 20 ) that's one of ways to minimilize the risk I would guess. Unfortunately, the market is full of shitty altcoins, try to ignore all of them otherwise, you will lose your budget on them, maybe some of them are a bit profitable in day trading but the opposite is true in a medium and long term.
In fact, the crypto market is heavily dependent on the value of Bitcoin and it is not always possible that the coin will be stable to help you make a profit during this time. I guess instead of choosing to invest in the top 20 CMC, you should find some new projects that have just appeared this year because this is the option that will help you to make more profits than the old coins.Not all things would be on correlation just what most people do think off but we cant really deny the fact that the entire
market does really being dragged down when bitcoins price tends to go down or simply if the market is on heavy bearish.
Its true that there are some alts that do stand on their own in spite of btc price which does simply means it doesnt correlate
from time to time because they do able to make or move its own path without relying on the main crypto that we've known.
It depends on the effect of your plans especially in the worst situations ( big dump ). In addition to that, it is better to focus on the best cryptocurrencies in the market ( TOP 20 ) that's one of ways to minimilize the risk I would guess. Unfortunately, the market is full of shitty altcoins, try to ignore all of them otherwise, you will lose your budget on them, maybe some of them are a bit profitable in day trading but the opposite is true in a medium and long term.
In fact, the crypto market is heavily dependent on the value of Bitcoin and it is not always possible that the coin will be stable to help you make a profit during this time. I guess instead of choosing to invest in the top 20 CMC, you should find some new projects that have just appeared this year because this is the option that will help you to make more profits than the old coins.
It depends on the effect of your plans especially in the worst situations ( big dump ). In addition to that, it is better to focus on the best cryptocurrencies in the market ( TOP 20 ) that's one of ways to minimilize the risk I would guess. Unfortunately, the market is full of shitty altcoins, try to ignore all of them otherwise, you will lose your budget on them, maybe some of them are a bit profitable in day trading but the opposite is true in a medium and long term.
In fact, the crypto market is heavily dependent on the value of Bitcoin and it is not always possible that the coin will be stable to help you make a profit during this time. I guess instead of choosing to invest in the top 20 CMC, you should find some new projects that have just appeared this year because this is the option that will help you to make more profits than the old coins.
It depends on the effect of your plans especially in the worst situations ( big dump ). In addition to that, it is better to focus on the best cryptocurrencies in the market ( TOP 20 ) that's one of ways to minimilize the risk I would guess. Unfortunately, the market is full of shitty altcoins, try to ignore all of them otherwise, you will lose your budget on them, maybe some of them are a bit profitable in day trading but the opposite is true in a medium and long term.
In fact, the crypto market is heavily dependent on the value of Bitcoin and it is not always possible that the coin will be stable to help you make a profit during this time. I guess instead of choosing to invest in the top 20 CMC, you should find some new projects that have just appeared this year because this is the option that will help you to make more profits than the old coins. 
It depends on the effect of your plans especially in the worst situations ( big dump ). In addition to that, it is better to focus on the best cryptocurrencies in the market ( TOP 20 ) that's one of ways to minimilize the risk I would guess. Unfortunately, the market is full of shitty altcoins, try to ignore all of them otherwise, you will lose your budget on them, maybe some of them are a bit profitable in day trading but the opposite is true in a medium and long term.
Pretty much it but you can also try to, divide your asset and maximize your trades doing it. What I mean by this is you should do long term trading and scalping, both of those are effective way to get profit from trading and that's a good way also to minimize your risk. And if you are a beginner trader, avoid the leverage trading! that is for pro only, considering that it can wipe out your whole balance and you might lose all of your money in just one wrong move. Leverage trading is high risk, high reward kind of trading, so I highly suggest to stay out of it if you are just new here. 
It depends on the effect of your plans especially in the worst situations ( big dump ). In addition to that, it is better to focus on the best cryptocurrencies in the market ( TOP 20 ) that's one of ways to minimilize the risk I would guess. Unfortunately, the market is full of shitty altcoins, try to ignore all of them otherwise, you will lose your budget on them, maybe some of them are a bit profitable in day trading but the opposite is true in a medium and long term.
That’s not going to minimize the risk you’re going to be taking in trading. I don’t even trust diversification in cryptocurrency, you’re buying a lot of altcoins that might not be making any sense later on. They might make your profit but a fall in the market will cause you loss that is much bigger than the profit you have made.
I would say that it is best for you to be stick to your long term investment maybe with bitcoin. Unless you’re going to be trading the top coins, like the top ten? I have seen people that tried diversification and invested in coins that are not even in the top hundred because they believed they are good but at the end they were disappointed.
Personally, I only invest some potential coins because those are very good coins for a long term profit. I always spend a lot of time trading because this is the only place I can make money and any of my decisions will directly affect the current profit. In addition, I only participate in projects that I think can bring me a profit because those coins are still new and investors are not really interested. I would say that it is best for you to be stick to your long term investment maybe with bitcoin. Unless you’re going to be trading the top coins, like the top ten? I have seen people that tried diversification and invested in coins that are not even in the top hundred because they believed they are good but at the end they were disappointed.
Knowing ourselves capability is one way to determine if trading would be a place in the right place to stay. Many people had come to trading without knowledge but in a certain thing, they will able to survive because they adopt the environment and most likely they learn faster than of the others. They'll find easier to adopt the system because they also know how to manage their emotions and face the risk.
There is no way to minimize the risk in trading (IMO) and it is not escapable. The only thing to do in order to not being hit to big losses is to maintain the calmness of our mind and don't even bothered so hard when we saw a declining sentiment in the market.
There is no way to minimize the risk in trading (IMO) and it is not escapable. The only thing to do in order to not being hit to big losses is to maintain the calmness of our mind and don't even bothered so hard when we saw a declining sentiment in the market.
The number one factor that is going to irrevocably minimise your risk is first of all knowing when to trade, that comes at the back of keeping up to date with the market. The second factor is using an exchange platform that you trust and can gain support if needed, and of course the last one is knowing yourself and only trade when you're confident enough and not just because you can't stop but trade even at times of market doubts.
All of these, plus others not listed here, are instrumental to gaining profit from trading, and I know they sound basic but sometimes you need to go back to the basics to avoid damages.
All of these, plus others not listed here, are instrumental to gaining profit from trading, and I know they sound basic but sometimes you need to go back to the basics to avoid damages.
but it doesnt always mean that they arent capable on reducing the risk but you should stick to those established or high ranking ones rather than considering on some shitcoins and hoping for some pump
This is definitely not about pleasing anyone
Since risks, or rather risk assessment, is more or less objective. To make a long story short, you can't reduce risk by choosing something which is more risky and highly correlated with what you already have. You will only be adding more exposure, and thus your overall risk level will go up
Diversification for the sake of reducing risks is about minimizing total risk by adding negatively correlated assets to your portfolio (e.g. gold and stocks). But this has a nasty side effect of reducing your profit potential since the assets are negatively correlated (i.e. when one rises the other necessarily goes down)
Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.
So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
We can minimize the risk if we try other coins to trade not only the top 10 you can try the other altcoins and you can trade it to make profitSo, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
Are you sure about that?
Because I'm not at all. As I see it and as all my trading experience tells me, adding more altcoins actually increases your risks, not reduces them. If Bitcoin is the top cryptocurrency in terms of reliability, adding anything to your portfolio less reliable than Bitcoin would only make it weaker, less resilient, robust and stable
You will be opening yourself up to more risks, which are inherent to altcoins. If anything, altcoins should be used as a profit generating device (if you are able to time the market), not as a hedge
into various risk because of choosing alts but it doesnt always mean that they arent capable on reducing the risk but you should stick to those established or high ranking
ones rather than considering on some shitcoins and hoping for some pump.Each trader do have its own way on reducing risk it might be appealing to others but as said you cant
please anyone.
Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.
So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
We can minimize the risk if we try other coins to trade not only the top 10 you can try the other altcoins and you can trade it to make profitSo, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
Are you sure about that?
Because I'm not at all. As I see it and as all my trading experience tells me, adding more altcoins actually increases your risks, not reduces them. If Bitcoin is the top cryptocurrency in terms of reliability, adding anything to your portfolio less reliable than Bitcoin would only make it weaker, less resilient, robust and stable
You will be opening yourself up to more risks, which are inherent to altcoins. If anything, altcoins should be used as a profit generating device (if you are able to time the market), not as a hedge
That’s not going to minimize the risk you’re going to be taking in trading. I don’t even trust diversification in cryptocurrency, you’re buying a lot of altcoins that might not be making any sense later on. They might make your profit but a fall in the market will cause you loss that is much bigger than the profit you have made.
I would say that it is best for you to be stick to your long term investment maybe with bitcoin. Unless you’re going to be trading the top coins, like the top ten? I have seen people that tried diversification and invested in coins that are not even in the top hundred because they believed they are good but at the end they were disappointed.
I would say that it is best for you to be stick to your long term investment maybe with bitcoin. Unless you’re going to be trading the top coins, like the top ten? I have seen people that tried diversification and invested in coins that are not even in the top hundred because they believed they are good but at the end they were disappointed.
Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.
So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
We can minimize the risk if we try other coins to trade not only the top 10 you can try the other altcoins and you can trade it to make profit. Bitcoin is not good for everyday trade bitcoin can hold it in a long time. But many altcoins are good to be trade just do search and trade it so that every trade you can not lose money instead you gonna get profit on it. So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
There are a lot of factors that should be considering in order to lessen the risks in trading. First we must identify first what type of trader are we, are we passive trader or are we a active trader? By identifying that, we can knownwhat type of strategy that is applicable to use. Strategies of long term and short tern trader are not the same so it is better if we will know what type of trader are we. The second is we should be prepared on unexpected situation because it is a game of probability where there are always chances of winning and losing.
We should also focus on our risk and management, it is the best way if we want to lessen the risks in trading. We should always have a plan before a trade where we can create tactics and specially cut loss strategy. Diversification is also matter and be sure that do not invest all of your money in just 1 coin. Spread it in 3-5 altcoins because it is the preferable diversification. We cannot totally remove the risks but we can lessen it if we really understand the market and if we know what we are doing.
Very well said. There's no way we can remove the risk upon our trade but what we can do is to reduce it. I like the idea of having a plan before make a trade, this can everything on our trade because if we have it there's no way that we can lose to our trading track.We should also focus on our risk and management, it is the best way if we want to lessen the risks in trading. We should always have a plan before a trade where we can create tactics and specially cut loss strategy. Diversification is also matter and be sure that do not invest all of your money in just 1 coin. Spread it in 3-5 altcoins because it is the preferable diversification. We cannot totally remove the risks but we can lessen it if we really understand the market and if we know what we are doing.
Diversifying indeed was one of the best strategy to reduce the risk, I think it is not necessary to be positive or negative correlated with each other because stock market is different from the crypto market we know. Now in choosing where tokens to invest, top ranked coins would be perfectly fit to place your investment, don't think of investing in random coins coz that will only increase the risk exposure of your funds.
Diversification is still quite important if you want to minimize the risk while also trying to make more money as well. I understand that you want as little risk as possible and that is definitely just buying bitcoin and holding but at the same time we are talking about missing out from the big increases from all others and when you minimize the risk so much that you are missing out the profits, that is not good at all neither.
So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
So, I suggest everyone to actually diversify their portfolio into the top 10 minus some bad ones and you can actually have a bigger increase as well (or a bigger fall of course) in order to both minimize the risk versus people who buy very very tiny volume coins outside of top 100 but also still have some chance of profitability.
Jump to: