Risk management in Bitcoin. - page 2.

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Quote from: SuperBitMan on October 27, 2024, 07:33:05 AM

Bitcoin investment is one of the best investment right now and the best crypto coin in the world, however it is very important we know how to manage risk when it comes to bitcoin investment and this are some ways to manage risk.

1. Conduct a proper research.
In other to succeed in Bitcoin investment one needs to dedicate his or her time and effort to conduct a proper research about Bitcoin. Starting by knowing about Bitcoin and its history, knowing the various strategy one can use to accumulate Bitcoin and hodl.

Normally is good for everyone who want to become successful in Bitcoin investment should make a concrete research about the Bitcoin properly in other to gain huge profits in future, but not all peoples understand that they just introduce themselves in to the Bitcoins investment without a proper knowledge about and the Bitcoin has be coming best crypto to all over the world in terms of the investment.

There’s a lot of people’s that accumulate Bitcoin and hold it when the Bitcoins never hits the currently amount that is reading for, those people are the one enjoy and still some people didn’t sell all the Bitcoins they hold for a long period of time they divide it into, because their expectations about the Bitcoins is to reach all time high.

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Quote from: Scarlett_23 on October 29, 2024, 12:30:45 AM

Investing in Bitcoin can be done in different ways by each person. But we have to be careful that we often get separated from the main idea and waste time by knowing more. First we need to think about why I want to invest in Bitcoin? We really want more profit through long-term savings. First, the investment should be done little by little, the risk will be less. Another advantage in this work is that we can easily understand the market. Again, using a secure wallet means you don't have to rely on anyone else. Spend an amount of money on investments that is less of a risk to lose.

Everyone has a way of managing themselves, especially when it comes to investing in bitcoin. The issue now is that what is your motivation for investing and what is your goal when you want to invest? If you don't have a goal, you should have one; at the very least, you should have a target of what you want to get out of the investment, but people just invest without a plan or target, which is a very poor way of doing business. When you want to do long-term business, you need to have something on hand, a long time investment is not something you start and latter you start looking for exactly how to take some money out. For maybe emergencies so their is a lot of things that is ongoing that we need money, you have to have a job of more of somthing that will give you money, for sustainability and I believe in investing a good amount of money to get a good return, and trading also looks interesting.

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Quote from: SuperBitMan on October 27, 2024, 07:33:05 AM

1. Conduct a proper research.
In other to succeed in Bitcoin investment one needs to dedicate his or her time and effort to conduct a proper research about Bitcoin...

You can safely skip this paragraph, as Bitcoin has already been researched for you many times. Such proper research should be carried out if you decide to buy any shitcoin before risking your deposit.

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Quote from: hd49728 on October 28, 2024, 09:19:23 PM

There is always risk. Risk of loss with your investment, so please only invest money you can afford to lose.

Using redundant money is a safety measure to hold the investment for the long term. When you invest with necessary money (which will be needed after a certain period of time) you cannot keep it for long even if you want to. Even Bitcoin won't run at your beck and call. Are you willing to take a loss if the Bitcoin market crashes when you need it? No, no one wants to be intentionally harmed. Or you can't have any illusions about the money you earmarked for investment, that money must be treated as neglected money. Basically, invest money that you will never need and you can live without it. It is a fool's errand to invest the required amount of money and guarantee profit.

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Investing in Bitcoin can be done in different ways by each person. But we have to be careful that we often get separated from the main idea and waste time by knowing more. First we need to think about why I want to invest in Bitcoin? We really want more profit through long-term savings. First, the investment should be done little by little, the risk will be less. Another advantage in this work is that we can easily understand the market. Again, using a secure wallet means you don't have to rely on anyone else. Spend an amount of money on investments that is less of a risk to lose.

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Quote from: Publictalk792 on October 28, 2024, 08:46:15 PM

Quote from: Jewan420 on October 27, 2024, 10:59:23 PM

Everyone has their own investment approach for Bitcoin investment. Even in the field of security measures are taken from each position as desired. No matter how well you ensure your security measures, you cannot be risk-free. Even if a person does not need to know so much before starting to invest, it will necessarily waste his time and he will lag behind in investing. This knowledge may be needed after starting to invest. You can discuss the fundamentals of investing and leave them free to take action.

Yes Investors have different ways of investing in Bitcoin and they take different steps to keep their investments safe. However no matter how hard they try there is always some risk. You do not need to know everything about Bitcoin to start investing but not knowing basics can lead to mistakes and missed chances. Finding balance is important. Understanding basics of investing is crucial but thinking too much about every detail can stop you from taking action. This balance helps investors make informed decisions without getting overwhelmed.

It is very important to maintain our balance in any investment, when we invest in anything, we do not need deep knowledge or complete understanding of that subject, but we must gain general and basic knowledge about that subject. There is always some risk in investment, but we must have proper knowledge to deal with that risk, collect the right information and learn about risk management strategies. And of course we must invest in the right place, not every investment can provide security like Bitcoin. Everyone who is aware and has proper knowledge of cryptocurrency invests in Bitcoin, because long-term investment in Bitcoin often provides much greater guarantees of profit. So I think a new investor should first choose Bitcoin as a crypto investment. Because Bitcoin is the safest and most profitable (only long-term) investment currency.

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Quote from: Jewan420 on October 27, 2024, 10:59:23 PM

Everyone has their own investment approach for Bitcoin investment. Even in the field of security measures are taken from each position as desired. No matter how well you ensure your security measures, you cannot be risk-free.

There is always risk. Risk of loss with your investment, so please only invest money you can afford to lose.

Other risks like storing your bitcoins improperly like on centralized exchanges without full control of your bitcoins because you don't have private keys or mnemonic seeds. Risks like don't have safe and secured wallets to use (non custodial, open source) and backups for wallet recoveries later.

Risk-free does not exist in life. It's only small or big and you only can minimize risk by having good strategy and methods for what you're doing.

Quote

Even if a person does not need to know so much before starting to invest, it will necessarily waste his time and he will lag behind in investing. This knowledge may be needed after starting to invest. You can discuss the fundamentals of investing and leave them free to take action.

If you are a long term investor, you only need to understand fundamentals for Bitcoin, choose a good wallet for your Bitcoin storage, make multiple backups, and make sure you hide your investment information with others to avoid risks of hack and physical attacks.

Investors are different than traders, and they don't have to spend or waste too much time in the market like traders.

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Quote from: Jewan420 on October 27, 2024, 10:59:23 PM

Everyone has their own investment approach for Bitcoin investment. Even in the field of security measures are taken from each position as desired. No matter how well you ensure your security measures, you cannot be risk-free. Even if a person does not need to know so much before starting to invest, it will necessarily waste his time and he will lag behind in investing. This knowledge may be needed after starting to invest. You can discuss the fundamentals of investing and leave them free to take action.

Yes Investors have different ways of investing in Bitcoin and they take different steps to keep their investments safe. However no matter how hard they try there is always some risk. You do not need to know everything about Bitcoin to start investing but not knowing basics can lead to mistakes and missed chances. Finding balance is important. Understanding basics of investing is crucial but thinking too much about every detail can stop you from taking action. This balance helps investors make informed decisions without getting overwhelmed.

Jewan420

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Patience and hard work are the keys to success.

Everyone has their own investment approach for Bitcoin investment. Even in the field of security measures are taken from each position as desired. No matter how well you ensure your security measures, you cannot be risk-free. Even if a person does not need to know so much before starting to invest, it will necessarily waste his time and he will lag behind in investing. This knowledge may be needed after starting to invest. You can discuss the fundamentals of investing and leave them free to take action.

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Quote from: ThemePen on October 27, 2024, 08:25:34 PM

Yes you are right Bitcoin market is highly unpredictable with frequent price drops and increases. Investors are good with this pattern know well how to take advantage of it. Buying Bitcoin during dips or bear markets can be smart strategy. Bear markets offer better investment opportunities than dips. Those who invested during last bear market would have made significant profits when Bitcoin value peaked. Even now profits would be substantial. Investing in bear markets has some advantages. It allows for buying more Bitcoin and potentially earning higher returns.

If you don't have good knowledge on Bitcoin market history like cycle longevity and performances in bearish and bullish years, you will be more sensitive with FUD and dips. Sensitive here means more vulnerable to big movements and panic sell or FOMO.

Next, if you don't have good strategies for your investment entry and exit, you will be panic in times of market dips, and waste great opportunities of "Buying dips" and enjoy good profit with bounces, rallies and growth later.

A very good strategy is Dollar Cost Averaging and there are several websites with free tools for calculating possible results (backward) from DCA investment.

https://dcabtc.com/
https://costavg.com/
https://www.bitcoindollarcostaverage.com/
https://www.cryptodca.org/

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Quote from: SamReomo on October 27, 2024, 06:18:24 PM

Well, in Bitcoin market we often see dips and then pumps and that's the nature of the market and of Bitcoin in general. The crypto market is more volatile than any other market and the ones who are in crypto know that thing very well. When it comes to Bitcoin investment it's always better to accumulate Bitcoin during the dips or during the bear market, I believe bear market gives way higher opportunists than any of the dips.

Let's assume if someone who bought Bitcoin during the previous bear market then that person would have made a lot of profit already when Bitcoin reached a new ATH in this bull market. Even at current rate of Bitcoin that person would have made a lot of profit and that's why bear market gives way higher profit and one can accumulate higher amount in bear market then any such dips.

Yes you are right Bitcoin market is highly unpredictable with frequent price drops and increases. Investors are good with this pattern know well how to take advantage of it. Buying Bitcoin during dips or bear markets can be smart strategy. Bear markets offer better investment opportunities than dips. Those who invested during last bear market would have made significant profits when Bitcoin value peaked. Even now profits would be substantial. Investing in bear markets has some advantages. It allows for buying more Bitcoin and potentially earning higher returns.

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Quote from: SuperBitMan on October 27, 2024, 07:33:05 AM

2. always stay updated.
Bitcoin is very dynamic which is also influenced by various factors, so as an investor who is into Bitcoin investment you need to always stay updated in other to know if there are new strategy one can use to run his or her investment, if there's a dip because one can accumulate more Bitcoin with less price if Bitcoin is in dip, etc.

Well, in Bitcoin market we often see dips and then pumps and that's the nature of the market and of Bitcoin in general. The crypto market is more volatile than any other market and the ones who are in crypto know that thing very well. When it comes to Bitcoin investment it's always better to accumulate Bitcoin during the dips or during the bear market, I believe bear market gives way higher opportunists than any of the dips.

Let's assume if someone who bought Bitcoin during the previous bear market then that person would have made a lot of profit already when Bitcoin reached a new ATH in this bull market. Even at current rate of Bitcoin that person would have made a lot of profit and that's why bear market gives way higher profit and one can accumulate higher amount in bear market then any such dips.

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Quote from: Ojima-ojo on October 27, 2024, 06:09:30 PM

1: know how much you can risk in holding Bitcoin for a long term.
2: have strong wallet security and know how best to invest in Bitcoin, that is when the right time to buy Bitcoin that will put you in a better position.

Aside from the above mentioned, points, I don't believe we will be needing all those things that you listed in the ops, because we need to be more flexible in our Bitcoin investment journey, so that we won't burn ourselves out while making that attempt to become a Bitcoin investors.

Much also you have to make the conclusion that, you can hold only the amount of Bitcoin that you can afford to hold for a long time, without any pressure to let go of the Bitcoin holdings to sort other emergencies.

It seems that OP missed that. I would change the number 1 which in my opinion should be, only hold the amount you can afford to hold for long term although yours isn't wrong or there's nothing wrong about it. OP only pointed out the things that a Bitcoiner should do and no specific things to do and you can say that it is very vague on what OP wanted to do like the one you mentioned which is specific like knowing how much you can afford to lose when you want to invest or invest what you can afford to risk without pressure.

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1: know how much you can risk in holding Bitcoin for a long term.
2: have strong wallet security and know how best to invest in Bitcoin, that is when the right time to buy Bitcoin that will put you in a better position.

Aside from the above mentioned, points, I don't believe we will be needing all those things that you listed in the ops, because we need to be more flexible in our Bitcoin investment journey, so that we won't burn ourselves out while making that attempt to become a Bitcoin investors.

Much also you have to make the conclusion that, you can hold only the amount of Bitcoin that you can afford to hold for a long time, without any pressure to let go of the Bitcoin holdings to sort other emergencies.

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Quote from: SuperBitMan on October 27, 2024, 07:33:05 AM

Lastly if you are not sure of anything about Bitcoin investment seek advice from those who has been into it for years who are professionals.

This is pretty much the shortcut of it and that's why we tend to see newbies ask the oldies if it's a good time to invest. While there will be experienced ones that will answer them as-is, definitely we are going to say that it is a good time to invest at any rate because we've been here and we like Bitcoin no matter what people say. But, always take it with a grain of salt because not everyone who's experienced is going to say such helpful tips for the newbies, some of them do have personal intentions so the risk is there as you're discussing it OP. So, as your #1, highlight it with a DYOR.

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Quote from: Egii Nna on October 27, 2024, 04:17:04 PM

Quote from: Jawhead999 on October 27, 2024, 08:07:47 AM

What's exactly the risk management from these all points?

Exactly my point. I see nothing related to risk management in the context of OP, all what I know is that when we are talking about risk management, it means how you will be able to utilize the money you get to trade so that you will not be a victim of regret. But all what OP is saying is just outside the box.

The reason why you are saying my points are outside the box is because you read them without fully understanding them, now when we talk about risk management in investment is the process of identifying, assessing and controlling threats to the investment now from this definition you will see that considering long term investment, conducting a proper research, Securing one's Bitcoin investment and always staying updated are ways we can manage risk in Bitcoin especially for newbies who are just starting the journey of Bitcoin investment this are the steps they need remember I made this post in Beginners & Help board which means newbies are the once to benefit from it.
The way you view risk management is very wrong before talking about utilizing the money used in Bitcoin investment you need to first know what you are going into as a newbie conduct a proper research on it then you open a wallet and make sure you secure it very well to avoid being scammed then you always be updated and if this was not important this forum won't have been created is very important to be updated about Bitcoin happens and chosen a long term Bitcoin investment reduce risk of losing money in Bitcoin investment which we all know, so how is this outside the box of risk management.

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All I can read is all about keeping your security measure strong and plan on earning profit. Risk is all part of investing in cryptocurrency either it's Bitcoin or different coins. There's different strategies that you can use and different ways to increase your security measure. Even those who doesn't have investments still did those things because everything online can be hacked at any time if you are very careless that's why I said that even though a person doesn't have investments but the wallet he/she will use to receive Bitcoin might also be compromised so doing all the things you mentioned will help.

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Invest what you can afford to lose is one of the major factor when holding bitcoin, investors feel the need to sell early (quick profit) because they never planned with a stable income. Bitcoin investment is risky, there’s no risk free investment although bitcoin risk can be considered as carelessness meaning bitcoin investment is more reliable compared to other investment choice but it all depends on an investor and their approach towards risk.

Quote from: SuperBitMan on October 27, 2024, 07:33:05 AM

2. always stay updated.
Bitcoin is very dynamic which is also influenced by various factors, so as an investor who is into Bitcoin investment you need to always stay updated in other to know if there are new strategy one can use to run his or her investment, if there's a dip because one can accumulate more Bitcoin with less price if Bitcoin is in dip, etc.
One can stay updated through engaging in discussions in this forum.

There’s no point bothering about different strategy, when it’s time for the dip an investor can buy when the money is available meanwhile the DCA is the most popular strategy. I don’t know much concerning new strategy if it’s worth a try, continuous research and discussion can help in accomplishing a good plan.

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Quote from: Jawhead999 on October 27, 2024, 08:07:47 AM

What's exactly the risk management from these all points?

Exactly my point. I see nothing related to risk management in the context of OP, all what I know is that when we are talking about risk management, it means how you will be able to utilize the money you get to trade so that you will not be a victim of regret. But all what OP is saying is just outside the box.

Quote from: Obim34 on October 27, 2024, 02:02:05 PM

You have said some reasonable things but adding to all that, we should not also forget that Bitcoin is not a quick rich scheme. Investing in BItcoin comes in different stages which we must undergo to become successful and yield for ourselves a decent amount of profit

Secondly, there should be no intermediary between you and your Bitcoin portfolio or wallet. The best security measure is by keeping it only to yourself except for the fact that it is being passed on as a WILL which involves giving out some certain privacy.

Having this two things in mind will not only help you from lost, but also help you to have a good mental health. The main vital thing to know about bitcoin investment after know that it is not a quick get rich scheme is security and privacy. Because they are the two factors that if not well understood and digested it will lead you to lost what you have worked for and be in regret in the future.

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Quote from: SuperBitMan on October 27, 2024, 07:33:05 AM

1. Conduct a proper research.
In other to succeed in Bitcoin investment one needs to dedicate his or her time and effort to conduct a proper research about Bitcoin. Starting by knowing about Bitcoin and it's history, knowing the various strategy one can use to accumulate Bitcoin and hodl.

You can also do research on different successful Bitcoin investors in other to know how they went about there investment the strategy they used, how consistent they were, there obstacles and how they bye passed it.

For the beginners, this kind of research is needed. But for experienced investors, they only need to do a research/analysis about the right time for entry and exit in each cycle. There is no doubt about Bitcoin, it is totally the most recommended one in crypto investment. Even there are people who only invest in Bitcoin. This is just a proof that Bitcoin is purely trustable. However, I admit that we must also understand about the right timing for buying or selling the Bitcoin. Even we are investing in Bitcoin for a long time, we must have a clear plan for the exit time. Well, I think this is the only research that we are necessary to do.

Quote from: Youngrebel on October 27, 2024, 09:49:38 AM

Risk is part of human beings. And no investment in the world is risk free and bitcoin is not exclusive. I am new to the system but risk management is a general term.

Of course, no investment has no risk. But each investment has a different level of the risk. In crypto, I think investing in Bitcoin is in a lower risk level. Even if you are new, it is quite safe for you if you understand the cycle of bearish-bullish. Just learn the price cycle, you won't be worried so much whenever you understand it.

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