Minimizing the risk- How much possible it is? - page 5.

Bagaji

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Quote from: magneto on January 28, 2020, 02:37:18 AM

You're diversifying for sure.

However, I'm not sure whether or not it's necessarily a good idea to invest in two coins that are completely opposites of each other. That could potentially mean that any gains in one of the coins can be offset by losses in another coin in your portfolio. I'd rather pick a sector which I think has potential and diversify within that sector.

Also, you're not completely eliminating the risk that one of the projects will go rogue. This indiosyncratic risk will always be there.

Your explanation is very perfect and it can simply mean that the person will be in lost. Op, relying on a site opinion is highly risky as against your investment as pump and dump group is not advisable since they are in to make profit too.

TheUltraElite

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Quote from: jcpone on January 29, 2020, 12:04:42 PM

I definitely agreed to you sir, were Ethereum is not a shitcoin, it was one of the promising altcoins actually in the market of cryptocurrency.
And one of the most useful platform too in terms of every new project arises in this field of business of crypto as well. Sometimes, we need to be very careful in bestowing like this things here in the forum.

Look, its a subjective opinion. For someone who managed to sell ethereum at the proper time and make money it is not a shitcoin. For someone who was stubborn enough to hodl during a drop would believe it is a shitcoin. Thing is one can hold bitcoin for long periods of time and then sell at good profit but would not be the same with other coins.

Back to the OP, I think you should be careful like I said in my previous comment. You cannot trust anyone on this market and this I cannot stress enough. The site you are speaking of, may just be making up stuff and trying to pump some coin at the expense of another coin. Good luck making money from watching them.

CryptopreneurBrainboss

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Once again, by relying on the site you highlighted on the OP you're putting your fund at risk by relying on an opinion from a total stranger, giving your financial advice through projects worth investing in based on their correlation with bitcoin which to some exact can't always be accurate at every price movement of the market.

For example their's this school of thought of Litecoin always profiting from the upward price movement of Bitcoin and from previous record, that have (mostly) been the case but after paying close attention to the Litecoin market last year, I noticed that wasn't always the case and I'm meant to believe that'll be the same fate with the correlation theory.

The cryptocurrency market is still highly influence by emotions so irrespectively of the strategy you're deploying to combat risk, you should understand that, the strategy can't be 100% accurate at all times. Nevertheless, since you're speaking on diversifying your investing, I won't recommend you concentrate on just cryptocurrency instead invest in other Investment vehicle that aren't correlated to bitcoin.

el kaka22

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There is minimizing the risk and there is minimizing the risk. You can literally never go into bitcoin and you will have zero risk losing money in this market, however your dollar will soon start to worth less and less over time so you are still in danger and that risk is just not coming from crypto anymore.

On top of that you can get in and be so safe and act so decently like have %1 stop loss and 1% profit and not move any other direction that you may end up maybe profiting slight bit but that's it, or lose slight bit but that's it. So, when you are minimizing the risk, you are literally risking more than you know. Money you didn't profit is also money you lost but people do not see "I could have made 300 more here and 400 more there" as losses as much as they see the normal losses.

dunfida

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Quote from: shield132 on January 29, 2020, 04:32:25 PM

Quote from: RapTarX on January 27, 2020, 12:17:59 PM

~snip
I was a part time trader (actually holder)
~snip

Did you find that it wasn't beneficial? Cause for me that action is minimizing risks. I never use all moments, I only try and aim to use best ones or sometimes good ones and never judge myself for my actions when I profit by saying that if I wait a little more, I would profit much.
But I see what's your point, usually altcoins follow to bitcoin but there are some that are independent from it and that's a good moment. I wouldn't say it minimizes the risk but probably the profit you may get from one altcoin won't be high enough to cover bitcoin's loss and opposite.
It's hard task, I may do some research on that, worth to keep an eye on.

Its just a matter of choice on a certain individual if he can embrace risk or would completely get rid of it by just simply holding for too long.
Altcoins price doesnt correlate with Bitcoins price from time to time and as you said which is actually true that there are even times that
alts do increase on we do least expect and making out profits on it.It might not be enough to cover losses but all do varies on how big your position
or the money you have putted on.

shield132

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Quote from: RapTarX on January 27, 2020, 12:17:59 PM

~snip
I was a part time trader (actually holder)
~snip

Did you find that it wasn't beneficial? Cause for me that action is minimizing risks. I never use all moments, I only try and aim to use best ones or sometimes good ones and never judge myself for my actions when I profit by saying that if I wait a little more, I would profit much.
But I see what's your point, usually altcoins follow to bitcoin but there are some that are independent from it and that's a good moment. I wouldn't say it minimizes the risk but probably the profit you may get from one altcoin won't be high enough to cover bitcoin's loss and opposite.
It's hard task, I may do some research on that, worth to keep an eye on.

pajak666

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Quote from: RapTarX on January 27, 2020, 12:17:59 PM

Let's say; Coin A has a positive correlation of 0.89 against BTC price & Coin B has a negative correlation of 0.89 against BTC price.

Are we safe to say investing on both these coins are minimizing the risk; provided that I will have a good research on both these projects to ensure that these are not shitcoins? Ignore the fact that all coins without BTC is a shit (Note for bitcoin enthusiasts).

It does minimizes your risk but this is not as important as things like proper trade sizing or not deviating from your strategy coz of emotions. Correlation is huge anyways in crypto so if you stick to some simple rules like ETH tokens is just ETH on leverage etc. then you should be fine and not over investing in same concepts. Also important thing is not betting against yourself ! You might go ETH long and EOS short while they are aiming for the same market, e.g. steel industry in real life. Spreading between 2 companies in the same sector is actually quite good way of diversification.

jcpone

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Quote from: Bagaji on January 28, 2020, 05:48:17 PM

I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

I definitely agreed to you sir, were Ethereum is not a shitcoin, it was one of the promising altcoins actually in the market of cryptocurrency.
And one of the most useful platform too in terms of every new project arises in this field of business of crypto as well. Sometimes, we need to be very careful in bestowing like this things here in the forum.

FanEagle

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Quote from: djgtr on January 29, 2020, 04:23:50 AM

What's the best strategy to minimize here is with bitcoin all alone and I couldn't find any good picks on altcoins while it wasn't gaining good value for a moment. There's no potential increase on selected alts yet, and it doesn't showed any further growth even btc started to rise fews hours ago. That's very important to accumulate our btc balances and keep holding for several months, then you'll the results of your patience.

Actually once bitcoins start rising, most of the altcoins start descending onto the dip. This is the case only because people who already have their funds invested into such altcoins rapidly start moving their capital from the altcoins to bitcoins only to maximize their profits.

This indirectly leads to dump of those major altcoins and bitcoins keeps on the ascending graph. Once bitcoin stabilizes onto some peak than most of the altcoins start showing us some growth. In this situation, holding maximum capital into bitcoins would prove beneficial as it might give us some instant profits if we consider buying and selling simultaneously in the small price movements.

Eternad

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Minimizing risk is by monitoring every now and then your portfolio and the market performance. While it is good to diversify. Know that we need to monitor ever investment we have. Successful Investing is about monitoring the risk, not avoiding it. Sometimes in those risk we take, the more chance we can earn. Just research and analyse whether those alts are worth risking for.

Darooghe

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The only way you will minimize your risk is by testing the hell out of your strategy over a significant sample size. Don't even think about dropping real money on this until your strategy has been proven to be consistently profitable. Your money management needs to be rock solid and compared to what most buy & hold guys do, you actually need a deeper understanding of timing trades. also another way to minimize risks is to not doing day trading as much as possible.

Oilacris

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Quote from: djgtr on January 29, 2020, 04:23:50 AM

Quote from: sisule on January 28, 2020, 11:05:44 PM

Quote from: Maslate on January 28, 2020, 06:15:56 PM

Quote from: DoublerHunter on January 28, 2020, 01:52:03 PM

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

What's the best strategy to minimize here is with bitcoin all alone and I couldn't find any good picks on altcoins while it wasn't gaining good value for a moment. There's no potential increase on selected alts yet, and it doesn't showed any further growth even btc started to rise fews hours ago. That's very important to accumulate our btc balances and keep holding for several months, then you'll the results of your patience.

The reason why do people do consider on putting some hopes on alts because they cant wait too long or too impatient.

Its no surprise though yet we do have our own will when it comes to investment matters.Minimizing risk will just depend on the steps you would take.
If you lost due to mistakes then you do know on what would you do next.

djgtr

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Quote from: sisule on January 28, 2020, 11:05:44 PM

Quote from: Maslate on January 28, 2020, 06:15:56 PM

Quote from: DoublerHunter on January 28, 2020, 01:52:03 PM

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

What's the best strategy to minimize here is with bitcoin all alone and I couldn't find any good picks on altcoins while it wasn't gaining good value for a moment. There's no potential increase on selected alts yet, and it doesn't showed any further growth even btc started to rise fews hours ago. That's very important to accumulate our btc balances and keep holding for several months, then you'll the results of your patience.

btc78

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Quote from: Coyster on January 27, 2020, 06:40:43 PM

Quote from: RapTarX on January 27, 2020, 12:17:59 PM

Are we safe to say investing on both these coins are minimizing the risk

No, with my understanding of trading, investing in two altcoins isn't minimizing the risk, you can research on two altcoins and yet they turn out to be shitcoins. Investing in many altcoins raises the risk of losses because I don't trust altcoins diversification as they are so many and you cannot pick out the one that will be the right one for your investment plans.

Quote from: RapTarX on January 27, 2020, 12:17:59 PM

I have got this site providing correlation of different altcoin against bitcoin- https://coinpredictor.io/altcoins

Can this site be trusted, do you think a trader can invest based on their predictions?

there are some types of trading and it depends on what we are basing here,if OP wants to be in Daytrading then that is really risky to Buy more than one altcoin but if he can stand for at least semi long term?in which he can afford to hold the coins when suddenly dump after being added to His folio?for me that is tolerable to Buy 2 or more alts for less risk,well this is how i see things because i am not really a trader as i am a Holder and don't want to make way into more risky like DayTrading.

sisule

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Quote from: Maslate on January 28, 2020, 06:15:56 PM

Quote from: DoublerHunter on January 28, 2020, 01:52:03 PM

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

goinmerry

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Quote from: RapTarX on January 27, 2020, 12:17:59 PM

Are we safe to say investing on both these coins are minimizing the risk; provided that I will have a good research on both these projects to ensure that these are not shitcoins? Ignore the fact that all coins without BTC is a shit (Note for bitcoin enthusiasts).

The floor is wide for you to make some test. As I read some of your responses here, you already have a good knowledge to start with. It is just that you are confused about some of your good ideas.

We have our own definition of "minimizing the risk" and maybe your way, can be considered as one but on the other hand, it might can't be considered on our own strategy.

Quote from: Bagaji on January 28, 2020, 05:48:17 PM

I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

Read that statement again by the OP "carefully" and "slowly".

Maslate

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Quote from: DoublerHunter on January 28, 2020, 01:52:03 PM

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

tenakha

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Quote from: RapTarX on January 27, 2020, 12:17:59 PM

Are we safe to say investing on both these coins are minimizing the risk; provided that I will have a good research on both these projects to ensure that these are not shitcoins? Ignore the fact that all coins without BTC is a shit (Note for bitcoin enthusiasts).

There are some opposite pairs in markets such as Forex, if you open a order with both of them, you will make profit. Because this market can be regulated. But, I have never heard of such pairs in crypto trade because of being unregulated. You can make this kind of analogy, but you can not get a definitive result. The being decentralized and the sovereignty that gathers in one power will prevent you. The best way would be to diversify the investment among some coins, but this will not give you the exact result you expect, if everything goes well, one's green will recover another's red, and more green will be your profit.

Bagaji

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I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

DoublerHunter

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I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

Topic: Minimizing the risk- How much possible it is? - page 5. (Read 824 times)