Topic: Risk in Crypto Assets Portfolio - page 3. (Read 736 times)

this differ in what is our main objective in investing here in our market.

if you know how to trade then do it, but if not then best to HOLD.

actually that is the risk we must take and also those are the risk taken by the Billionaires now who trusted this currency since day one.
Never invest in coin that has no future , i mean those coins that has been created solely for the benefits of the team and not the whole market.

In general, the common ground that affects and positions at disadvantage/risky side all of the three kinds of people you have mentioned is volatility. The fluctuation of market price is definitely the main factor that could risk one's asset. It's the nature of crypto and we are all aware of that. It just depends on how we will manage and cope with it to our benefits.

As a retail investor, the volatility could affect your decision making in investing. There are times that the position is low or high depending on market demand. Sometimes, the price value of bitcoin in the market seems to be 'low' but it isn't it. And if you happen to invest in high position, you'll have a feeling of regret later. Since you can't really withdraw it after a while. You'll have to wait for the price to climb. Personally, if you're an investor for long term, I guess volatility brings you less risk. Unless you will be FOMO-ed.

As an asset manager, the volatility could make a huge impact to the account holder's portfolio the moment things go the way you perceived it to be. If ever things don't happen like what you predicted, you will be in a trouble. So you have to always have a plan B as a way out before it's too late.

As a trader, volatility could either make or break your asset. You should always watch the chart trend of pump and dump and do technical analysis as a basis of your decision. You should know when to take profit and when to cut loss. If ever you'll just hope for the best despite seeing that the position is going nowhere, your assets will be liquidated.

There are so many keypoints that I haven't mentioned here yet, but these are the things that first came into my mind. Hopefully, I gave you helpful insights.

Every investment or trade carries a risk of loss, including investing or trading cryptocurrencies. What needs to be considered when entering the crypto world is to minimize the risk of these losses, for example buying Bitcoin and selling it at the right time, this is very important because it will affect your investment and trading. Apart from that, investment plans and management are also required to fit your trading roadmap. We cannot eliminate the risk of loss, but we can minimize the loss.

I know most people find crypto hodling better and would disagree with me but I think trading is rather less risky. We are not yet very sure about the future of cryptocurrency. Imagine keeping holding on to it in the hope that it will rise very high. When it starts falling you still believe that it will rise again but the opposite happens. There are real examples when many cryptocurrencies couldn’t climb back. I prefer benefitting from price movements that happen during the period of a few days or weeks.

True, all of them bears the same risk.

And whatever they are in career, they're just taking the same risk as what we're taking as well. In cryptocurrencies, the same risk and it's depending to the tolerance of the investor.

And reducing the risk is better if you do research.

Every investment is risky but remember," the more the risk the bigger the profit" if you know how to handle your investment. Also you can minimize risk just learn how to do it. Also just choose from the top coins in coinmarketcap to make sure that you will earn and minimize too much risk. The volatility in crypto has  a good return because we can earn through this. Avoid investing huge amount in new coin without utility or use case.

Beside the price risk, to me among the biggest risk is losing your keys as an investor with a long term goal in mind, actually am currently facing such delimma, bought some Tokens back in 2018 at a very cheap price, now tokens have valued alot but my keys seem not able to open the wallet of the token, seem I must have copied it wrongly or so, now I can only see what's on wallet without access  , not a good situation.

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

Are you confusing risk with volatility?

To a large extent the buying and selling points are important and they determine how much profit you end up making. The asset managers are facing everyday changes in price so forget them - they dont even get to see a good profit being pushed into the field at bear or bull. But the retail investors are having an advantage here being the ones to enter the market at their own sweet time.

Make that top five. Top 100 is 95 shitcoins in my opinion.

A common mistake that I did not expect you to do. Some less experienced users might have this notion but you should not. Newly listed coins are very well shitcoin 99% of the times. Better to keep your money focused on bitcoin. Your returns might not be huge but similarly your losses will also not make you bankrupt.

All investments have risks, and cryptocurrencies are a type of high risk investment, but we must always be vigilant because many things can happen in cryptocurrencies, to reduce risk I will hold the top 100 rankings, while for big profits in the short term I will buy new listed coins .

     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.

I will answer this question a bit. I hope this answer can help many people

1. As a retail investor: the risk you get is speculation when prices decline and investors can't do anything. because the nature of investors is to wait like a holder

2. As an asset manager (hedge fund business): when the market is unstable this will disturb the asset manager owned

3. As a trader: when the market dumps the trader must be able to control and manage assets well. because this is the advantage that traders can switch from one crypto coin to another at any time to reverse the lost profit with various trader techniques

When you are making such rush decisions just because you are in a hurry on making profits then thats really a big mistake for you to make.
You cant be sure on what would happen next and its just right that you would really be minding about the risk involved and would really be
that careful on making actions just because you do know that you could lose money if you are really that careless or would make actions
without any basis. You are the ones who would make out such plans and decisions according on what you had learned.

There must be risks in the world of cryptocurrencies, whether investing or trading. Both are equally risky, but there are things you can do to reduce the occurrence of these risks. In trading you can use a stop loss, this point should not be forgotten because it is really important to reduce losses. Besides that, you also have to determine the right time when selling or buying coins. What is also often forgotten by many traders is usually their emotional control is trapped and finally emotions, therefore you must often practice your patience.

Yes, it's true that everything has a risk. The risk that can be obtained from the crypto world such as investors or traders is the crypto market that goes up and down. This ups and downs crypto market makes them have to be able to think carefully to be able to sell or buy coins properly. besides that they also have to be able to choose good coins to invest or trade. This risk can be overcome if we are careful and alert. do all that with careful thought and also do not rush.

I don't see any difference between investing as a retail investor, asset manager or as a trader. They all face the exact same risks everyone faces which is volatility. The crypto market is very volatile. The price may go up or down within few seconds. The risk is less if they are willing to invest and hold coins for long term. Coins like Bitcoin and Ethereum will give them a good profit. There is also the regulatory risks. Any new regulations added by the government might cause problems to current investors.

you can only have good analysis if you are very familiar with the coin you are trading with. if you are just blindly following the fud in the market, you can easily lose your hard-earned money. whether you are a retail investor or asset manager or trader, the knowledge about the coin you are trading with is very important, as it will give you insights on where the coin is heading.
also, one thing that i noticed is you should follow or subscribe their social media channels, as sometimes they will give updates or hints on what's going on that you can't find on their thread here. so some of the developments have an impact on their price, so it is better to keep updated with their progress.

Some cases of loss according to them wrong analysis and rush to make decisions. Judging from the price movement of Crypto itself, many people speculate in trading, regardless of the analysis they have done before deciding to open buy. Actually there is nothing wrong in analyzing if the knowledge of the market is broad and already has skills in the market. Talking about profit, no one can guarantee, but the profit ratio is bigger if based on good analysis.

Good thing you have understood this. Most newbies entering this market are coming from hyped shills who promote altcoins that are dying out. Eventually these newbies get fooled into buying those shitcoins without learning about how the market works. Doing a little bit of research can save a lot of money in this market. But without prior knowledge of speculative asset trading and how things work this can be bad for many new entrants.

Big or small amount is a relative term. I guess people understand the market and see how it moves first before increasing their average volume. But it is true that risk takers will always go big no matter what, their appetite is much larger. Retail investors are likely to be more cautious.

we know that bitcoins is digital decentralized crypto currency which mean its unregulated and we also know that the value fluctuates a lot , which makes it a high risk high reward asset ,
Although the returns on investing in cryptos are astonishing high but we can  never be sure about cryptos crashing , the chances are low but they aren't that low to be ignored , the value highly depends on the supply and demand ,
I don't think many retail investors and asset managers would opt crypto for big amounts considering the risk , but for traders they can just invest in any other crypto which is more stable and are regulated .