Risk in Crypto Assets Portfolio - page 2.

noormcs5

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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.

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.

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Quote from: Vatimins on February 11, 2022, 03:33:32 AM

Knowledge is basically not enough without proper wisdom. Only with having both knowledge and wisdom can one be a better doer. Just think about it, what would knowing help if you do not understand the ways to apply the knowledge you have or when you should apply it? In contrast, only understanding the ways won't do you any good without the concrete knowledge to back it up.

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. For example, 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.

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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 is depend on how they trade and their behavior in trading, Maybe he is just too afraid to lose in which not needed in this market because the more the price is volatile is the more chances of gaining.

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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.

Exactly , we have our own batch of currencies and we have our belief in each coin, when from others it is not worth trusting well in our part that is the most promising so the thing is? for someone to profit there must be someone that needs to lose right?

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Quote from: andriarto on October 31, 2021, 02:24:44 AM

Quote from: Vatimins on October 28, 2021, 11:19:07 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.

If you really think about it, there will always be risks in whatever investment you make. The only thing that makes the difference is your knowledge about a specific investment, how much you know about it; the do's and don'ts. Another thing would be how you carry yourself as an investor and how you manage your portfolio and risks. Knowledge is one thing, but knowing how to apply that knowledge is a whole new level that would need actual experience or mentoring. Anyways, hope you understand what I am trying to point out.

with knowledge we will understand the risks and rewards, so that we will be able to take a realistic view of the type of investment that we do. like bitcoin, which has a high fluctuating nature, so we are required not to panic sell, and if we can manage it then we will get the rewards we want, but to take profit we must also be realistic by putting aside greed

Knowledge is basically not enough without proper wisdom. Only with having both knowledge and wisdom can one be a better doer. Just think about it, what would knowing help if you do not understand the ways to apply the knowledge you have or when you should apply it? In contrast, only understanding the ways won't do you any good without the concrete knowledge to back it up.

Although I got your point clear as day, I just wanted to clarify that while knowledge is important, wisdom is also as important and that having both is even more important. I say this because without those two, the things that you have mentioned above will be impossible to achieve.

batang_bitcoin

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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.

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Quote from: jostorres on November 07, 2021, 02:48:31 PM

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

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.

When you talk about risks that are involved in investing money in cryptocurrency, it all comes down to one thing which is loss. Anyone who is investing in cryptocurrency or trading it is likely to lose their money at anytime, it doesn’t matter whether you are an asset manager, a day trader, Or a retail investor. Whatever you are in the market,you’re going to face the risk.

Though, as an asset manager I would say that you are taking more risk, as the asset you are managing belongs to other people or should I say other investors, and losing such a huge money is going to be a huge risk for you. That’s why being an asset manager is not a job that’s meant for just anyone, you have to be someone who is really brilliant and well experienced in everything that has to do with trading and economy. If you’re not good in technical analysis or fundamental analysis, managing assets is going to be a huge challenge.

It's a skill that does not belong to everyone, as you mentioned a simple trader handle his own money the risk of losing is in his hands while with asset manager, it's a compound investment that being entrusted to you, deeper experienced and really knows how to work with this business rely the fate of this investment money that you are holding.

Though it's just the same, the market is so volatile, without knowing what adjustments to take will risk your money to lose.

In the other hand, knowing the fundamentals and keep improving your knowledge are your best advantage in making your way to succeed.

chanler

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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.

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The important thing to do when you decide to invest in cryptocurrencies is to allocate your portfolio. The question is where and how much should you invest. However, there is no exact answer to this as each investor will have to decide how much money they want to allocate to their crypto investments according to their goals, capabilities, risk profile, situation, etc. personal finance.
Possible risks when investing in cryptocurrencies:
- cryptocurrency is an emerging asset class, the liquidity of many cryptocurrencies is not high or cannot exist in the market.
- cryptocurrencies are not regulated by any government agency or organization, however this can lead to a lot of legal risks and other consequences.
- price volatility is one of the attractive points of BTC for speculators, but it also brings many risks.

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

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.

When you talk about risks that are involved in investing money in cryptocurrency, it all comes down to one thing which is loss. Anyone who is investing in cryptocurrency or trading it is likely to lose their money at anytime, it doesn’t matter whether you are an asset manager, a day trader, Or a retail investor. Whatever you are in the market,you’re going to face the risk.

Though, as an asset manager I would say that you are taking more risk, as the asset you are managing belongs to other people or should I say other investors, and losing such a huge money is going to be a huge risk for you. That’s why being an asset manager is not a job that’s meant for just anyone, you have to be someone who is really brilliant and well experienced in everything that has to do with trading and economy. If you’re not good in technical analysis or fundamental analysis, managing assets is going to be a huge challenge.

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Quote from: DewiKirana on November 07, 2021, 05:47:19 AM

Each of these three points has a big risk as well as a big profit. Investors and asset managers have the same great risk if they have crypto assets, but the ones who are most directly at risk are crypto traders, because Bitcoin prices fluctuate.

Everyone has risks, I don't see what he chooses. So all require good management and not all can do that. Fluctuations have indeed become the nature of all cryptos so don't make that a problem. I am sure traders, retail entrepreneurs and others who seek to profit by utilizing these fluctuations despite different sources. What plays a role here is the expertise of analysis, market analysis and risk compounds that must continue to be trained.

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DewiKirana

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Each of these three points has a big risk as well as a big profit. Investors and asset managers have the same great risk if they have crypto assets, but the ones who are most directly at risk are crypto traders, because Bitcoin prices fluctuate.

zaesvlas

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There are quite a few risks in cryptocurrency. A completely working option is to buy different coins and just wait for growth. But it is worthwhile to understand that this can also be past.

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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.

It's true that there's always a level of risk associated with investment in general. As per cryptocurrency, the high volatility makes it even more!

So as a retail investor, a trader or an asset manager, there's always an option to manage losses or gains. The stop loss and take profit button is very useful in this case.

Also, knowledge is very important in doing anything. A knowledgeable person will definitely know how to cut loss and take more profit when compared to someone bent on making only money without the knowledge of what he's/she's doing.

In general, it is better to always invest what one can loss such that the effect will not be suicidal.

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Quote from: Shenzou on November 06, 2021, 04:39:51 PM

Quote from: ?? on ??

It must be understood that all types of investments have risks, such as bitcoin which is a very risky type of investment, because it is too risky so I recommend investing only the money you have in hand, never dare to sell property or other assets to buy bitcoin. it's better to have a special budget to buy bitcoins on a regular basis by setting aside some of your salary to buy bitcoin.

That is true but we can all agree on the fact that long term investment in bitcoin is way safer than investing in anything else, if you asked me about investing in bitcoin three or four years ago i would be hesitating and i would recommend otherwise because back than there were no regulation for it, and it seemed like government were against it, but today we are seeing not only big multi billion dollar companies invest in it, but entire countries accepting it and making it as an accepted currency, and due to its nature and limited supply the price is always going to go up so in terms of long term investment it is safe, but the other alt currencies not so much.

Thus, we can't push or encourage people to choose long-term investments as it was too difficult for doubtful people. It is very common that these people will think about what ifthe price will dump? the market will collapse? They are not totally sure about their decision but rich people can make it. That's helped me to think that talking about the long-term will also base the status of our life. Having multiple sources of income (like rich people) could make it but if you are poor or coming from a third world country that is something rare, most come and decide on a short-term investment goal as they think this could safeguard their money.

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Quote from: ?? on ??

It must be understood that all types of investments have risks, such as bitcoin which is a very risky type of investment, because it is too risky so I recommend investing only the money you have in hand, never dare to sell property or other assets to buy bitcoin. it's better to have a special budget to buy bitcoins on a regular basis by setting aside some of your salary to buy bitcoin.

That is true but we can all agree on the fact that long term investment in bitcoin is way safer than investing in anything else, if you asked me about investing in bitcoin three or four years ago i would be hesitating and i would recommend otherwise because back than there were no regulation for it, and it seemed like government were against it, but today we are seeing not only big multi billion dollar companies invest in it, but entire countries accepting it and making it as an accepted currency, and due to its nature and limited supply the price is always going to go up so in terms of long term investment it is safe, but the other alt currencies not so much.

Issa56

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Surely when it comes to cryptocurrency their is always risk because nobody is certain about anything that will happen and not even cryptocurrency alone, even in life nobody knows what will happen in the future. I will be talking about cryptocurrency trading, you must make sure you do due research and trade a reliable coin which if you are in sport trading you don't really have to make use of stop lose but some people still use stop lose for sport trading but me personally I only use stop lose for my future trading to avoid lose of all my funds. (Liquidation).

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

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.

Both retail investors and traders may not need to hold bitcoin so that they will never need to bother about the fluctuations of bitcoin markets but if the asset manager is about holding bitcoin for long period of time then they should plan of for more than four years of holding so that they could beat the fluctuations of bitcoins as bitcoin is known for growing up at least 10x in every four years.

By long term holding, we can eliminate the risk factors involved in bitcoin investment please note that only when you are holding bitcoin for months to years then you will get affected by its fluctuations at the same time if you are planning for holding for 4 to 8 years then you can get more chances to come out in profit by beating all the risks.

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So anyway, I applied as a merit source :)

Quote from: noah tall on November 02, 2021, 04:11:36 AM

There are so many risk in crypto asset portfolio . Just like scammer can produce there own tokens and thay grab the money of investors and ran away . And other one is when you link your wallet with other apps . Than hacker can easily clean your wallet. So be careful about your portfolio.

These things are client-side problems that can be overcome by being vigilant, doing due diligence when investing and keeping your devices safe from malware. Easy to speak but most people dont end up taking preventive precautions and the first attack only makes them careful.

For a retail investor and trader, this can be devastating. For a asset manager, the fault is from their side, but an asset manager will already have learnt the basics on how to keep the assets safe from theft before joining.

But this is just one risk in crypto. The speculative risk is what is more happening everyday on the market .

Quote from: ?? on ??

It must be understood that all types of investments have risks, such as bitcoin which is a very risky type of investment, because it is too risky so I recommend investing only the money you have in hand, never dare to sell property or other assets to buy bitcoin.

I think majority of the stories of someone investing their life savings of entire property on bitcoin, are only stories to put risk-taking traders at bay and not real at all. Take them with a bit of salt, invest responsibly.

Quote

it's better to have a special budget to buy bitcoins on a regular basis by setting aside some of your salary to buy bitcoin.

That is a good idea, but keep the prices on check, not every month will have a proper price to buy at, during such times - just hold the fiat.

noah tall

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There are so many risk in crypto asset portfolio . Just like scammer can produce there own tokens and thay grab the money of investors and ran away . And other one is when you link your wallet with other apps . Than hacker can easily clean your wallet. So be careful about your portfolio.

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