Risk in Crypto Assets Portfolio | Bitcointalksearch.org

Mauser

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Quote from: TheUltraElite on February 19, 2022, 11:51:10 PM

Greed is an emotion and it can be controlled. There are subjects who are prone to greed more than others, just like some of have a bad temper and get angry at little things, but such people need to train their minds to stay in control and not let greed take over, otherwise they need to stop trading for a while.

To be honest, such people dont last long either. They will get washed away while trying to make more and more and will be a small speck of dust in the trading timeline. Those who survive this game are the ones who are diligent and have controlled their emotions to not be greedy but be frugal.

The gambling mindset should be changed for this to happen. But there will always be some newbie willing to take the risk and become food for the whales.

I agree with you, the market tends to wash out traders that don't have the right mindset. Being controlled by emotions makes usually bad investment decisions. We can't listen to our stomach when to buy and when to sell. Greed is one of the worst emotions a trader can have, because it lets us focus mostly on returns and how to maximise them. But once we focus only on returns we tend to forget about the risks we are taking to achieve that returns. The chances of blowing becomes a big issue for too greedy people, similar to playing in casino and never stopping after a big win, until all the money is gone again. It's much easier to lose money than to earn it, that is why a good investment portfolio should focus more on the risk than on making the maximum possible returns.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: ?? on ??

Greed has become a human trait that seems to stick to every human being. sometimes people who already have knowledge about investing, they also still feel greed even though they understand that things like that are wrong and shouldn't be done, but many of them violate it. and to be able to control it we must be able to communicate with ourselves and keep practicing

Greed is an emotion and it can be controlled. There are subjects who are prone to greed more than others, just like some of have a bad temper and get angry at little things, but such people need to train their minds to stay in control and not let greed take over, otherwise they need to stop trading for a while.

To be honest, such people dont last long either. They will get washed away while trying to make more and more and will be a small speck of dust in the trading timeline. Those who survive this game are the ones who are diligent and have controlled their emotions to not be greedy but be frugal.

The gambling mindset should be changed for this to happen. But there will always be some newbie willing to take the risk and become food for the whales.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: AakZaki on February 13, 2022, 02:17:44 PM

those who want big profits in a short time will certainly continue to be greedy and will not be satisfied. when their portfolio already has a lot of profit they don't sell some of it, they continue to hold it until the price crashes and suffers a loss.

The loss is suffered only when the coins are sold and not when they are being held. With bitcoin this chance of suffering a lose is less too. Again this will depend on the trader's mindset being made of nerves of steel, in which case they will accept movements as opportunities and not gains/losses.

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Psychology must be controlled so as not to harm the investment made, so that the initial strategy continues to work properly. If the target has been achieved, sell and enjoy the profits. enter and exit the market at the right time and use the money that will not be used in the future for any needs.

Truely, selling and buying back must be done. But most traders fail to do at the proper time, in which case just hold, it will end up being the same.

Again this is the way the market weeds out the weak hands and only the composed diligent traders remains. Patience is important here, but being able to hold till the price reaches and then taking the chance to sell is equally important.

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Quote from: CaVO32 on February 11, 2022, 09:28:38 AM

Quote from: Slow death on February 11, 2022, 05:56:49 AM

Quote from: Questat on February 11, 2022, 05:21:46 AM

Quote from: Peanutswar on February 11, 2022, 05:02:31 AM

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

That is actually the most common misconception of most newcomers in the crypto industry. Because they thought getting easy money here is that easy peasy. And then, they will find out that it is not what it seems. With thousands of alts to choose from, for sure they will be confused where to start. As some are after for get-rich-quick projects, a lot are being screwed by these scam projects, giving them bad experience in crypto. And this is where some negative feedbacks are coming from. But it is not the general character of crypto, misleading some noncrypto users.

Well, when we talk about the btc market, it is very common for us to meet people who do not have much knowledge about the speculative market, whether it is about BTC or the stock market, forex, among others, the laws are going to be almost the same, You must have a financial education to understand the market, to understand the difference between market speculation and investment, which many when they enter the market mix these two concepts and make mistakes because it leads them to failure and make bad decisions, this is where they lose money and it is not the duty to be.

dunfida

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Quote from: AakZaki on February 13, 2022, 02:17:44 PM

Quote from: Slow death on February 11, 2022, 05:56:49 AM

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

those who want big profits in a short time will certainly continue to be greedy and will not be satisfied. when their portfolio already has a lot of profit they don't sell some of it, they continue to hold it until the price crashes and suffers a loss.
Psychology must be controlled so as not to harm the investment made, so that the initial strategy continues to work properly. If the target has been achieved, sell and enjoy the profits. enter and exit the market at the right time and use the money that will not be used in the future for any needs.

Greed must be controlled and you should have set your own goals in the first place on what price and when you would be securing out your profits but we couldnt really blame out others on having that kind of HODL
kind of mindset since we know that if a potential project is on your portfolio then you would continue or keep on believing on it that it would be worth on hodling for long term which some people do mind off
but majority of them are really greedy or do comes after for the high price and not actually into its true relevance or potential and thats why we do really have these kind of mistakes
that have been done.

nurilham

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Everything in here has its own risk and one of the risks is the crypto market going up and down or unstable prices. for me, as a trader, the risk that can be obtained is the crypto market that goes up and down and as a trader, we must be able to choose coins that have good prospects to be purchased in a shorter period of time than investment. Besides that, monitoring the market is something that every trader must do wherewith it we can analyze the market well and can determine when to sell or buy crypto. But back again behind the existing risks, of course, there are benefits to be had too if we can use and manage it properly. so be more careful with this unpredictable crypto market.

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Quote from: Slow death on February 11, 2022, 05:56:49 AM

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

those who want big profits in a short time will certainly continue to be greedy and will not be satisfied. when their portfolio already has a lot of profit they don't sell some of it, they continue to hold it until the price crashes and suffers a loss.
Psychology must be controlled so as not to harm the investment made, so that the initial strategy continues to work properly. If the target has been achieved, sell and enjoy the profits. enter and exit the market at the right time and use the money that will not be used in the future for any needs.

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Quote from: CaVO32 on February 11, 2022, 09:28:38 AM

~

Imagine thinking that an unstable market would lead to easy money. Thinking crypto would be a money-maker within few days is the stupidest mindset that one could ever have. Sure there are a lot of alts out there that could be taken advantage of before the dump, but with these Metaverse and some crappy NFT games experience rug pulls, it's much more dangerous to throw in your money unlike before.

stomachgrowls

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Quote from: KaliLinux on February 12, 2022, 12:29:18 PM

Quote from: ?? on ??

Tore is no prediction work in the Crypto price. And it is risk that your crypto asset portfolio will be low and can be high. If your asset will be increased then it is good but if your asset will be decreased then you will be in loss.

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

Those would really be unrealized loss and its true that as long you arent dealing with leverage or futures then you could always opt on holding and doesnt matter on how long it is and as long

you dont sell then you wouldnt loss anything but if you are dealing with other things then you wouldnt able to make out some recovery of your investment.Risk would be always there and it would
totally start up on the time that you had put up your money here on crypto space via buying those coins/project in the market.

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Quote from: KaliLinux on February 12, 2022, 12:29:18 PM

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

Some people get it right and they are willing to stick with it, but there are always people who can't stand a drop in price and they panic so much to sell it. Building a good portfolio for long term investments is something that most people really hope for, but if they can't control their emotions during this volatile market then they really can't take maximum profit in the long term.

It's not really strange, but a lot of experience can usually make most people get a commensurate return on this investment. While panic and being overly concerned with fluctuations will only harm the trader on most occasions, it should absolutely be avoided in investing.

KaliLinux

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Quote from: ?? on ??

Tore is no prediction work in the Crypto price. And it is risk that your crypto asset portfolio will be low and can be high. If your asset will be increased then it is good but if your asset will be decreased then you will be in loss.

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

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Yes, of course, behind the big profits there is also a big risk. Crypto is already known to many people at high risk, but in fact crypto enthusiasts are still increasing, not decreasing. Countries are also starting to legalize some cryptos. This can be a good start. There is a risk, so we face it instead of running away from problems, this is often a challenge for traders because as traders we must be able to keep emotions well. There's nothing wrong with taking part in cryptocurrency, the important thing is that you believe and believe. It's useless if you enter cryptocurrency but just stay silent.

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Quote from: batang_bitcoin on November 21, 2021, 06:58:24 PM

Quote from: chanler on November 21, 2021, 05:32:28 PM

the risk that can be obtained of the three is the crypto market which goes down and makes the market chaotic. other than that someone who invests or trades shitcoin will certainly get the losses and will get nothing so before investing into crypto we must be more careful in choosing the coins. The coin that we choose will also have an impact on the profit we can get, invest and trade the coins that do have good prospects.

Why anticipating loss already by trading or investing those type of coins? There are investors and traders that are making a lot of money from trading those.
It's that it's not ideal for us because they're not our choice. But to them, they're making a lot of money from it when they get to ride the hype at the beginning of it.

For me, Cryptocurrency trading and Investments are mostly about knowledge and some level of luck. You might be right when you said, people are making money from investing in some type of cryptos, a lot of other traders have lost money from those too so it wasn't because they knew it was a better option but just took a higher Risk = Higher reward.

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Quote from: Cryptmuster on February 11, 2022, 04:36:57 AM

Things are not even in wisdom, but in discipline and understanding of how to apply your knowledge. Just do not need to complicate for yourself, what can be done simply.

I acknowledge your idea but discipline and understanding falls into wisdom which is also gained through experience. That's why people often say "wisdom comes with age."

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we see that in the long term, bitcoin and gold are constantly growing in price and it is not difficult to guess that this is due to the constant increase in the money supply and rising inflation. Therefore, there is no problem just buying bitcoin and gold and waiting for them to grow in price.

Yes that truly is the case, but you also have to consider that not all people have good enough financial capabilities. Which is why knowledge and wisdom is needed for people less capable so they can manage their finances and have better investment plans. All throughout the years we have seen dozens of stories from a wide variety of people investing blindly; putting all eggs in one basket or even investing money that they cannot afford to lose and end up getting rekt. I hope you get my point.

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Quote from: Questat on February 11, 2022, 05:21:46 AM

Quote from: Peanutswar on February 11, 2022, 05:02:31 AM

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

The OP lists three kinds of people that are involved in crypto and they are: retail investor, asset manager (hedge fund business) and trader. Although I agree that trading is risky but I think the position of being an asset manager has more risk than in trading because the asset that you are managing are not yours but it was the asset of other people and if you lose it, your going to have a hard time paying it and if not, your going to face serious punishments.

This discussion wont be complete if we are not going to talk about retail investor. This type has the lowest risk among the three because you usually pick old coins as old coins works well in investing or hodling for long term.

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Quote from: Slow death on February 11, 2022, 05:56:49 AM

Quote from: Questat on February 11, 2022, 05:21:46 AM

Quote from: Peanutswar on February 11, 2022, 05:02:31 AM

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

That is actually the most common misconception of most newcomers in the crypto industry. Because they thought getting easy money here is that easy peasy. And then, they will find out that it is not what it seems. With thousands of alts to choose from, for sure they will be confused where to start. As some are after for get-rich-quick projects, a lot are being screwed by these scam projects, giving them bad experience in crypto. And this is where some negative feedbacks are coming from. But it is not the general character of crypto, misleading some noncrypto users.

Slow death

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Quote from: Questat on February 11, 2022, 05:21:46 AM

Quote from: Peanutswar on February 11, 2022, 05:02:31 AM

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

Questat

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Quote from: Peanutswar on February 11, 2022, 05:02:31 AM

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

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Quote from: noormcs5 on February 11, 2022, 04:37:03 AM

Quote from: Wenbing on October 07, 2021, 04:36:23 AM

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

As a retail investor, the biggest risk is that you know when to invest and for how long you can invest. If you are investing for short term, then there is a risk that prices may be down when you need to cash out.

cashing out is always the issue in our investment because it is easy to buy a coin and trust this but the problem is when we will be needing the currency and where we will bring this.
Have been in this situation many times before but lucky that i also have funds in banks so whenever i am badly needed? i can take out my funds in banks instead of my funds inside crypto.

Quote

As a trader, you should understand the different types of trading which include spot and futures trading. Your account can be completely washed out if you are not careful and do not follow the TA with money management.

That is the saddest part, if you made a wrong action and decision and suffered a complete lose , this will end up your career and you may curse bitcoin or crypto all your life.

Peanutswar

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The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

Topic: Risk in Crypto Assets Portfolio (Read 736 times)