Topic: Risk management in Bitcoin. - page 3. (Read 541 times)

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.

There is always a minus in the Bitcoin market, it should not be neglected during the process of investing. Adapting to the risk management comes with accepting all of these, including patience to accumulate successively without going in too aggressive and getting to flatten what we worked for so far.

Permit me to add to this that in addition to securing your coins the above mentioned devices, take basic cyber security courses if you can pay for it, YouTube is a university where almost everything is free. The benefits of cyber security courses is that you not only learn to secure your coins, you learn how to secure your electronic device and ever other personal information you hold dear.

You have raised very important points in your message, but you have not detailed them well. I would like to add regarding security that it is crucial to remain vigilant against new threats such as scams and data breaches.

I would also like to add that it would be better to develop an asset allocation strategy that includes cash and other less volatile investments to better manage market fluctuations. I find this better than the idea of an emergency fund.

I would also like to add that the notion of long-term investing should be a bit nuanced, as the market evolves rapidly. Sometimes, it is better to be flexible and know when to take profits.😅

Definitely Risk management is vital in every investment non exclusive.
But I would like to point out somethings

1. Researching others strategy doesn't mean you would be successful. What works for A wouldn't necessarily work for B.

2. Staying updated for dips? This is too narrow minded and depends on the strategy

3.Securing your holding like you is very important and should be one of the most important method in mitigating risk.
Like our tutor used to say "Before learning how to On a machine learn how to off it first "


In summary, Don't invest more than you can afford and secure your wallet properly.

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. Plan risk is always good for investment.

Conducting risk management in your Bitcoin investment does not mean you will eliminate all the risk in Bitcoin investment however you will reduce the risk.
Trying to use long time experience or knowing your investment well may cause you a lot of money and some newbies lift Bitcoin investment because they lost a lot of money so is better one engage himself in risk management especially newbies so as to prevent lost.

Honestly, when it comes to Bitcoin, there's just two things to follow once you've made the call that Bitcoin sounds like a good investment to you:

1) Learn how to secure your coins using a hardware wallet or cold storage
2) Buy in by using Dollar cost averaging in a responsible manner

That's it, everything else is just noise.

I believe where there is no risk, there is no gain then. Be it with bitcoin or other form of investment, taking risk is crucial. However, even if you conduct all those steps OP, there will always be risk with bitcoin investment, most especially that its market is highly volatile that makes it very unpredictable, then the guarantee of creating profits will never be certain. But if you know your investment well, you have acquired knowledge and experience in the market, hence the risk to lose will be minimize while you gain more confidence to increase your profits.

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

Honestly if you want to invest in Bitcoin, the only thing you need to care is how much money you can able to not touch it. Let's say you earn $3K per month, $2K for monthly needs, $1K left, but you can only afford to invest $500 because you need to hold the other $500 for emergency funds.

But, if you're a trader, then you need to know how much you trade, how many % you take profit and cut loss etc, the risk management is more deeper in trading.

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 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.

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.

3. Secure your Bitcoin investment.
Making sure that your Bitcoin investment is secured is very important because if you don't secure it very well you will lose everything.
In other to secure your Bitcoin investment you need to choose a very good wallet, use a very strong password missed with alphabet and numbers, don't share your password or secret phrase with anyone, don't connect into people's wifi to open your wallet, etc.

Another face of securing your Bitcoin investment is by having a strong backup funds this backup funds comprises of emergency, floats and reserve funds this funds will prevent you from dipping hands into your Bitcoin investment when ever you are faced with financial issues instead of dipping hands into your Bitcoin investment you dip hands into your backup funds.

4. Consider long term investment.
People usually love quick profit and I must say is very tempting, considering how highly volatile Bitcoin is in it's nature involving one's self in long term Bitcoin investment will be less risky than going into Bitcoin trading.

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.