Minimizing the risk- How much possible it is? - page 3.

Hippocrypto

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Quote from: LUCKMCFLY on February 12, 2020, 11:38:04 PM

A type of diversification of that style in the Crypto market that I have only seen in the coins that make Pump and Dump, but it is because it is their form of survival.

Since Bitcoin is the King's currency, all alternative currencies follow Bitcoin, because alternative currencies have no life of their own, if Bitcoin goes up, the immediate effect is that alternative currencies go down, if Bitcoin goes down in the same way, so that other cryptocurrencies rise in price, Bitcoin must remain on a lateralization or upward trend, in the case of the 5 main alternative currencies of the CMC, the graphics are very similar to those of Bitcoin, and it is logical, they follow the same path of Bitcoin And that's why it's his behavior. I think that a more viable way to diversify would be with gold or real estate investment.

It could be a usual mindset that most coins were depending on how it's going to be affected with bitcoin's increase, but for now I would still remain fair on what I believed. Because as far as altcoins were most concerned here, that doesn't confirmed with the actual changes that we see right now in the market. Most of the promising coins that pumped the highest during 2017, has no definite position to obtain a nicer price nowadays. In fact it has a slow trading volume compared with bitcoin.
In order to minimize some possible risk, never panic and choose holding while there's still chance for altcoins to soar back higher.

LUCKMCFLY

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A type of diversification of that style in the Crypto market that I have only seen in the coins that make Pump and Dump, but it is because it is their form of survival.

Since Bitcoin is the King's currency, all alternative currencies follow Bitcoin, because alternative currencies have no life of their own, if Bitcoin goes up, the immediate effect is that alternative currencies go down, if Bitcoin goes down in the same way, so that other cryptocurrencies rise in price, Bitcoin must remain on a lateralization or upward trend, in the case of the 5 main alternative currencies of the CMC, the graphics are very similar to those of Bitcoin, and it is logical, they follow the same path of Bitcoin And that's why it's his behavior. I think that a more viable way to diversify would be with gold or real estate investment.

mersal

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As long as we are choosing the best crypto currencies the risk factor gets reduced in long term trading but for short term it is still relevant so trade based on btc value or USD value and try to make more reap for that day then think about moving to another coin if it becomes less volatile or lost interest from more crypto traders which can be identified by watching their daily traded volumes.

wxa7115

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Quote from: TheUltraElite on February 12, 2020, 06:44:39 AM

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Exactly, this what everyone should focus on diverting our investment into different other potential coins and it will surely help us to make decent profits when those coin prices start increasing. We don't know when the coin prices are increasing or decreasing and everything based on the market situations.

Too much diversion is again bad. There needs to be a balance between keeping your money in the form of cryptocurrencies, stocks, bonds commodities, precious metals and liquid cash. You have that and you have the opportunity to ride a wave in every market. You dont have to watch while another popular market goes up with a fist on your chin and a lopsided grin Grin

But diverting too much within the crypto sector like putting in money in too many altcoins is risky. What you need to focus on is bitcoin and keep the altcoins to a bare minimum for the long term.

I would argue that trying to diversify in altcoins is not true diversification and if anything you are increasing your risk if you do that, most altcoins with the exception of stable coins are correlated to bitcoin so you are not really getting a lot of protection from them.

However as we know many altcoins are not good investment prospects and are in fact shitcoins, anyone holding a large amount of those coins will sooner or later lose his money, true diversification and the minimization of risk it carries only comes from choosing several different markets, this is like trying to diversify yourself from the stock market by buying several different stocks.

jostorres

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Normally, the stablecoins made sure that minimizing the risk was there, because before they were a thing, people would have to withdraw their money to fiat instead of stablecoins, nowadays it is easier to stay in crypto by just moving from a crypto to stable and then go back, a lot easier than doing the same with fiat for example.

That is probably the best way to minimize your risk since you basically get out of the crypto market all together while also staying in crypto market at the same time, which is a marvelous invention if you ask me. Aside from that I doubt there is a better one, you can secure your coins by using a hardware wallet for example but that is more about security and not minimizing the risk of losing value when the coins are dropping in price.

milewilda

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Quote from: TheUltraElite on February 12, 2020, 06:44:39 AM

Quote from: ?? on ??

Exactly, this what everyone should focus on diverting our investment into different other potential coins and it will surely help us to make decent profits when those coin prices start increasing. We don't know when the coin prices are increasing or decreasing and everything based on the market situations.

Too much diversion is again bad. There needs to be a balance between keeping your money in the form of cryptocurrencies, stocks, bonds commodities, precious metals and liquid cash. You have that and you have the opportunity to ride a wave in every market. You dont have to watch while another popular market goes up with a fist on your chin and a lopsided grin Grin

But diverting too much within the crypto sector like putting in money in too many altcoins is risky. What you need to focus on is bitcoin and keep the altcoins to a bare minimum for the long term.

Everything which is too much is always bad.!

When we do talk solely on crypto investment then 80% would be on BTC and 20% on alts but well this would vary on each person
yet we do have our own will and instinct on where we do like to put or throw up some money.Risk is always there but doesnt
mean that diversifying would be always good from time to time.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: ?? on ??

Exactly, this what everyone should focus on diverting our investment into different other potential coins and it will surely help us to make decent profits when those coin prices start increasing. We don't know when the coin prices are increasing or decreasing and everything based on the market situations.

Too much diversion is again bad. There needs to be a balance between keeping your money in the form of cryptocurrencies, stocks, bonds commodities, precious metals and liquid cash. You have that and you have the opportunity to ride a wave in every market. You dont have to watch while another popular market goes up with a fist on your chin and a lopsided grin Grin

But diverting too much within the crypto sector like putting in money in too many altcoins is risky. What you need to focus on is bitcoin and keep the altcoins to a bare minimum for the long term.

Botnake

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Quote from: Bitvaluta on February 08, 2020, 04:14:46 PM

I suck at trading in volume. I prefer just buying BTC and maybe some alts with money i can lose and check later on in a (few?) year(s).

Years would be good if you are into long term investment, but you don't only hold that for years, aside from that, you also need to ensure you have a target amount to sell your bitcoin and altcoins so you will not miss the opportunity, the best time to sell is when there's a bull run, so aim high as everything possible when there's a bull run.

Negotiation

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Quote from: canamani on February 08, 2020, 04:19:26 PM

Is hard to get profit when risk a lot. i can't risk much as i'm not the best trader , i preffer to buy low and sell high

I agree with you that once the damage is done it's much harder to reduce it That's why I also try to avoid risk in the workplace For this reason I control my emotions and base my education in various places and then trade. Many times it is not possible to reduce a single loss.

maydna

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Quote from: Mahanton on February 10, 2020, 12:10:01 PM

Quote from: maydna on February 10, 2020, 01:54:12 AM

Quote from: canamani on February 08, 2020, 04:19:26 PM

~snip~

Easy to say but really hard to be done on just simply trying to buy low and sell high. We do always try to look for the bottom but with this very unpredictable market this had always been a difficult job.
We do try our bets to minimize the risk as we can but due to volatility we do really get confused nor even panicked when the price tends to go opposite on what we do expect.
As said by other which experience will be the thing that matter most yet this will be the thing will push you to make good analysis which in result in good trades.

Yes, even the pro trader will feel the same as us. Trying to search the lower price will be difficult, but we can try to check the pattern from the last time of the low price. If we can find that pattern, I guess that we will see that there is a signal to find out and predicting the lower price. Although we cannot always get the lowest price, it will no problem because we already get a lower price.

If we only bet to minimize the risk, that will not always work because you know that the crypto market is unpredicted, and if we cannot find the pattern, we will not have a chance to minimize the risk. So we need to learn more to find a good time to buy at a low price and sell at a high price.

Mahanton

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Quote from: maydna on February 10, 2020, 01:54:12 AM

Quote from: canamani on February 08, 2020, 04:19:26 PM

Is hard to get profit when risk a lot. i can't risk much as i'm not the best trader , i preffer to buy low and sell high

You can follow that way to make a profit, but you need to remember that you must have a good time to determine the low price. Otherwise, you cannot get the low price. You can prepare to buy the coin when you see the red candle appear in the market so you can decide on how much money you want to use to buy the coin.

Besides that, you should be careful because the price can get down for more if there are dump happen in the market, so you need to have more money in your account to buy more amount.

Easy to say but really hard to be done on just simply trying to buy low and sell high. We do always try to look for the bottom but with this very unpredictable market this had always been a difficult job.
We do try our bets to minimize the risk as we can but due to volatility we do really get confused nor even panicked when the price tends to go opposite on what we do expect.
As said by other which experience will be the thing that matter most yet this will be the thing will push you to make good analysis which in result in good trades.

maydna

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Quote from: canamani on February 08, 2020, 04:19:26 PM

Is hard to get profit when risk a lot. i can't risk much as i'm not the best trader , i preffer to buy low and sell high

You can follow that way to make a profit, but you need to remember that you must have a good time to determine the low price. Otherwise, you cannot get the low price. You can prepare to buy the coin when you see the red candle appear in the market so you can decide on how much money you want to use to buy the coin.

Besides that, you should be careful because the price can get down for more if there are dump happen in the market, so you need to have more money in your account to buy more amount.

fullhdpixel

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Quote from: vintages on February 06, 2020, 09:54:07 AM

Just because it works for stock investment does not means, it will work for cryptocurrency trading.
Every thing about crypto is just unpredictable. And its funny to say that the time or period we think that the there won't be price increase, it might suddenly skyrock.

It does work in crypto trading if you do it the right way. When you buy any coin you must have the prior knowledge why the price should rise and why it might fall. I mean you cannot expect an immediate J-curve with any crpyo pair but you might very well see that in long term the coin will do good. You just need to make sure that the coin you are buying is not just because you heard about it, you must know something about it like we do in stock investment.

Quote

If best, stop listening to price prediction, and follow your instinct. Many of those predictor have ended up misleading. Make research of coins, and stick to three of them.

Crypto trading does not work like that, I have had strong instincts for many coins and ICO's but they ended up being crap as others suggested me. You have to be with the market to make profit in the market, you cannot swim alone.

Lanatsa

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Quote from: bitbunnny on February 08, 2020, 05:28:23 PM

You can't avoid risk completely but you can diminish it. First of all, don't ever invest more than you can take. Also, don't put all eggs in just one basket which means that you should diversify your portfolio and choose different types of investment. It's also important not to be greedy and to set realistic goals that you can achieve and always to have a back up strategy.
Even when you are doing the best in trading don't forget that losses are always possible and be prepared to make decisions fast and without hesitating.

Wrong thing here on most people is that they do rush up on making profits which do results into mistakes and setting realistic goals rather than rushing up yourself
on thinking on making big profits or income.Risk is inevitable but somewhat can be suppressed depending on how you do make up such decisions.As said time will come
that losing is there and your experience and knowledge will tell you on how to deal with those things.Minimizing risk wont really be that easy but not impossible.
Just dont rush and always carefully think on steps that you should take first.

bitbunnny

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You can't avoid risk completely but you can diminish it. First of all, don't ever invest more than you can take. Also, don't put all eggs in just one basket which means that you should diversify your portfolio and choose different types of investment. It's also important not to be greedy and to set realistic goals that you can achieve and always to have a back up strategy.
Even when you are doing the best in trading don't forget that losses are always possible and be prepared to make decisions fast and without hesitating.

canamani

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Is hard to get profit when risk a lot. i can't risk much as i'm not the best trader , i preffer to buy low and sell high

Bitvaluta

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I suck at trading in volume. I prefer just buying BTC and maybe some alts with money i can lose and check later on in a (few?) year(s).

SquallLeonhart

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Volatility is really hurting all of us when trading, the shorters and the longers but in the end all of us lose.

The reality is that is the market, sure there are some traders in the world who have came to crypto from other stuff like forex and stocks and what not and they know what they are doing and they know its a regular thing that this happens.

However, some of us are from technological backgrounds and not from financial ones and at first when volatility happened and the price went up and down so much we got really confused, we weren't expecting to double our money in a month for example but we also didn't expected to lose 50%+ in a month neither so when both of them happened literally inside one year we became seriously shocked and didn't know what to do.

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Quote from: ryzaadit on January 27, 2020, 01:18:02 PM

The conclusion from me, it's not really gonna minimize your loss with diversification assets on a few altcoins.

I have the same perspective about diversification because all coin will get impact from his mother ( bitcoin ), I think diversification will not reduce risk but much bigger than before. Minimize risk only can doing by using stop loss and take profit point whatever coin you take, use realistic target to set range and execute. Basic trading knowledge and tools is not change until now but people psychology always changed, they only need to follow it and control emotion.

controlling emotions for new traders is indeed a very difficult task to do because usually new traders will use all their capital to get into the coin and after that the price falls will make them panic they do not have full experience about the price of cryptocurrency which could again become expensive and possible also impatient factors make them become losses because of selling their assets at low prices.

Negotiation

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You are right that it is very difficult to manage the market in terms of investment No one can say exactly when prices will go up and down That is why we should all invest in different places before investing. shitcoins that talk about reducing the risk of investing can never hurt your wounds if the market does not survive as Bitcoin prices rise. Secured coins should be traded to reduce risky business.

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