Topic: Risk management in Bitcoin. (Read 542 times)

We can always learn about Bitcoin online which there are so many video on YouTube and on other social Media. Whether we are traders or Bitcoin investors it is normal for us to learn and keep getting information on how we can be a good Bitcoin investors  and traders without being greedy. Greediness has been one of the ways investors can lose money from either trading or investing if caution is not taken. There are so many videos online for those that are interested in learning how to trade or risk management so they don't enter the market blindly taking more risks than the actual profit they can make.

Yes, I also agree with you, these days there are many scammers who steal all the accesses of our devices in the name of online tutorials. They keep trying to trap us in different ways. So we must always be careful. Best of all, if we can learn these subjects offline through classes, we can be completely safe.

And yes, we have many big experts in this forum too, we can take help from them to learning anything. We have different sectors in this forum, like {Development & Technical Discussion, Trading Discussion, Mining support, Pools, Mining software (miners), Hardware, Mining speculationm, Wallet software.} a newbie go to that sector and ask about the topic you don't understand, you will find, all the experts giving you the right advice.

Just to add a little to what CryptopreneurBrainboss mentioned about risk management and lose of capital, the best way to also protect your investment when buying bitcoin is to make sure that you have a low entry point into bitcoin, what that means is that, always make you buy your bitcoin when the price of bitcoin is low, avoid jumping to invest in bitcoin when the price is already high or durinea bull market.

The best way to DCA is to always open you buy order when the price of bitcoin is at a discount level, that way you reduce your risk of losing immediately to the bearest minimum, and also have increase your chances to make profits within the shortest periods of time, when you buy Bitcoin at low price.

Bitcoin investment is the best investment crypto wise; it is the safest investment when you want to keep your asset safe and when you want to plan against inflation; I think these two points is not necessary when you invest in Bitcoin. You have to trust Bitcoin before you invest in it, extra research is always good, but it is mostly useful when trying to invest in altcoin, but as for Bitcoin, I think you are always safe because other coins (altcoins) are all looking at Bitcoin, so no need to panic when you invest in Boycoin.


These points are very important especially the type of wallet you will use to save your Bitcoin. Having good knowledge about key and address is very important because it will guide you to choose the best wallet for yourself and to know how to send and receive Bitcoin using your Bitcoin wallets addresses provided to avoid making error or sending Bitcoin to another person.

Online tutorials are good but be careful because we don't know the kind of information given to us by those people and mostly of them after the audio note then ask your to click some links for further instructions and learning and if the link is from scammers then you system will be infected with a virus and apps might be hacked. So in addition to your suggestion, I will also prefer offline class for cyber security if you know anyone around you. And most preferably. You can ask what you want to do in this forum and people will answer your questions and you learn from here. This forum has cyber security gurus which can help you to secure your wallet well. We have discussed this in the wallet Board if I am not mistaken it I have seen them discussed it.

Bitcoin is the most important investment you need everything with caution especially when you are trading especially when you are doing futures trading you need to be more conscious of putting the right things in place, things like leveraging and stopping loss and the rest. before you start trading things you consider first how to reduce risk. because that is what you are supposed to take seriously, a lot of coaches will encourage you to take risks it is good but make sure that the risk you can take is something that you can afford to lose, sometimes you can stake high but you will lose some money for sure if it is trading.

The thing is that trading is more delicate than we think so if you don't put the right things intact then you will know why they say that knowing is important because you will even lose more than what you can afford but most people, and this is simple if you can not handle gambling then you should just focus on spot or even holding so just to reduce or even avoid risk.

They would never know what's best to do with their bitcoin until they experience to lose a lot of money by trading it since doubts always comes late for people using it for fast money grab schemes.

If they just think about long term then accumulate then hold for sure they would never think about anything more bigger than buying and holding it. Because execution of this investment is so easy since there's no need to have deep knowledge since even newbie could able to do this investment especially if they do DCA method the way how they accumulate their bitcoin. People should not really invest on things they don't understand sine its dangerous stunt if they go with it since market is really risky especially for those people aiming to earn money for short period of time.

You don't need to spend all your time conducting that dip of a research on Bitcoin like it's something new that nobody knows about. Just buy and hodl and you're good to go. There isn't anything new that you'll learning by conducting your research as you say. You only need to be mindful of your wallets and get to secure them safely and that's all.

Risk management should reduce the risks in loss of money and you can do that by being more mindful of your capital and don't invest above your limit. DCA when needed and understand what you're getting involved with. I always advice people's to start small and increase as you get hold of what the industry is all about. When I say just invest, I'm not asking you to throw in money and expect a return asap. Obviously you shouldn't invest into something you don't understand yet so get familiar with how to send, receive and safely store your Bitcoin before purchasing some.

I quite agree with you especially when you made mention of making use of the dollar cost average in a responsible approach, that implies more about investing with an amount that you can be comfortable with to accumulate Bitcoin irrespective of the price points, this takes away emotion driven and pressure in terms of making investment decisions, Bitcoin might be risky yeah but not really as risky as most people say because if only one can invest an amount he or she is not going to make use of which could be as little or more that suits you over a long term, perhaps Bitcoin retain values as well unlike Fiat hence there is no point panicking.

Same thing I wanted telling OP, the title of the post doesn’t really correlate with the post itself.

This an important part of investment if you ever want to succeed in cryptocurrency because you cannot just invest without knowing anything about the project especially now that there are lots of coins coming up. Bitcoin is very different from all other coins so to some extent you don’t have to research much about it when investing for a long period all you have to do is to learn the basics about bitcoin and how to setup a wallet and safely secure your wallet.

Researching about other people strategy is good but might not be convenient for you as everyone has different strategies that suits their income and responsibilities so copying another person investment strategy can be difficult so you should rather adopt a strategy that is convenient for you.

People need to understand that bitcoin and cryptocurrencies are not a get rich quick scheme where they can expect fast profits. To make a reasonable profit in a short period you need to invest a huge amount which is impossible for most investors so long term investment is the best option for them.

Yes you are right investing in cryptocurrency requires caution but with good decisions we can earn much. To avoid losses we should learn about market trends and invest wisely and consistently and we should buy when prices are low and consider saving Bitcoins. Remain informed and patient also helps and investing for long term reduces risk and increases profits. It is better to hold on your Bitcoins instead of constantly buying and selling as this will help you build wealth and earn more money in future. With following these strategies we can successfully understand cryptocurrency markets and achieve our financial goals.

Although there are risks in Cryptocurrency you can get high profits with proper management but you need to be wise about timing and investment. You should engage yourself with activities that can help you become more careful about protecting your capital over time. You should accumulate crypto through structured activity and tend to buy lump sums during price corrections to accumulate more stacks in shorter time spans.

Besides, you can reduce the investment risk to a great extent by depositing bitcoins. By following the DCA method tending to accumulate Bitcoins for the long term can greatly reduce your investment risk. If you decide to trade it will constantly expose you to risk, so tend to accumulate for long periods thereby increasing your chances of getting a stack of Bitcoins and higher profits in the future.

This is the core of Bitcoin and cryptocurrency risk management in general, choosing and securing your wallet is the most important aspect of holding Bitcoin. Knowing all the terminologies and technicalities in the crypto space with all the knowledge about Bitcoin circles is not enough, if you make wallet related mistake, then you can lose your coins forever. After gaining basic knowledge like knowing the most reputable cryptocurrency, which is no other than Bitcoin and understanding it's circles, next step is risk management which revolves around wallets.

Understanding about cold and hot wallets, knowing that we have fake wallets and also knowing the reputable wallets are the first stage of risk management. Then knowing how to secure your wallet so that your coins will not be lost forever or be stolen is the most important aspect of risk management in Bitcoin. Newbies should DYOR on these points raised.

Yes I agree with you, the main attraction of bitcoin and its real profit we can only get by using long term holding strategy. And the best method for long term holding is DCA method. The best and most effective and most popular method of investing in Bitcoin is the DCA method. we know the Bitcoin market naturally fluctuates all the time, that's why it may not be profitable for us to aggressively invest in Bitcoin, but by investing through DCA method we can invest at different prices on a regular weekly or monthly basis, It becomes more profitable for us as we can buy more bitcoins in any given week or month at the same price (when bitcoin price dump). and thus invest for a long time, We get an average value of Bitcoin, which gives us more profit in the future.

Bitcoin mining and trading is popular but the level of risk is high, those who don't know much about crypto can't make money from mining or trading, many people get hurt by it due to lack of proper experience and knowledge.

So I think we should focus only on Bitcoin investment and continue DCA for long term, and take all kinds of security to keep your holding safe.

Well trading it would be one of the risky decision people could think since we cannot really see the potential to gain from bitcoin in short period of time. But if they think for long term with this coin and do some back tracking for each price milestone reached by this coin provably that majority of new investor would think that bitcoin is really for long term and patience is important if we want to deal with this coin.

What I also see the problem with this thing is they always check the price and get scared easily on fuds. This is the result of lack of knowledge to determine what best action to do in bad situation happen with this coin. That's why lots of people regret why they sell since they don't know how to asses this situations. So people should grab more knowledge to became more successful since the key to succeed when choosing to invest with longterm investment with bitcoin is good income flow,patience and also knowledge.

Risk management in Bitcoin trading deals with the systematic way of knowing, assessing, and how to manage the  potential investment losses. Such as your interest and payment method also handling of your funds in general .
Cryptocurrency comes with a lot of risk, and you need to understand and manage it before you can successfully trade crypto,if it is not well properly managed up , you might end up losing all your funds.

There are different ways of making money with Bitcoin, but the best way is to invest in Bitcoin by buying and holding for a long period of time. With this strategy, one can potentially achieve reasonable profits. Other common ways of making money in Bitcoin are mining and trading, though I think these carry more risk than simply investing in Bitcoin.

Buying Bitcoin using a dollar cost averaging (DCA) approach is a great way to accumulate Bitcoin, as it allows one to acquire Bitcoin at different price levels, potentially increasing profits in the future. Alternatively, one can buy Bitcoin in a larger amount, but only with what they can afford to lose.As for wallets, it is always advisable to use a non-custodial wallet, as this is the only way to have full control and ensure proper security.

Another thing I would also like to add to these is to get the right mindset and better understanding of the market that it can never be predicted. Before making decision to invest bitcoin one needs to understand that bitcoin is not an investment to go into to make profit quick, with this mindset I think the investment is in a risk which one won't be able to hodl due to lack of patience.

Sometimes people go into the investment with a time frame of when to make profit and when it gets to the time that was predicted and they couldn't get the profit which they were expecting they lose the interest of hodling. What people really needs to invest bitcoin is the right wallet,  the right strategy, and a clear understanding of the market, with these it is possible to invest bitcoin.

In addition to what OP has said about this, acquiring bitcoins and just feeling relaxed is not a good practice for anyone who owns some amounts of bitcoins. Being updated with some important news which directly or indirectly affects bitcoin will help a great way in helping us better manage our risks. Many bitcoin investors who have been following up scam related news will rarely fall for scammers because they already know how they operate and know how to better protect themselves. The same regular updates will help them act swiftly if peradventure the exchange they are using gets hacked or the government imposes some unfavourable restrictions on the exchange which will be disadvantageous to those who hodl bitcoins with the exchange.

Ignorance will really be too costly if we lose our bitcoins because we were not aware of what was going on.

Yes, Bitcoin market is unpredictable and it has been that way since its start, but after growing to high marketcap it's somehow predictable to some extent now then it used to be. Buying during dips can be good strategy for the traders and also for the ones who're doing DCAying, but it's not for the ones who want to earn high profits. Let's say someone who's already rich having capital of $1M or $10M can earn good profit even after dip Bitcoin grows by 1% to 3%, but someone with capital of $1000 may not earn good profits from the dips.

Well, bear market is the best time to purchase and accumulate Bitcoin for everyone, the traders, the ones who make money with DCAying and dip buying, and also for the ones with small capital. Let's say if someone who invested $1000 in Bitcoin when it was still below $20k then as of today that person would have made profit of more than $2400 with that investment. Similarly if someone who had invested $1M or $10M in Bitcoin during that time then that person could enjoy the profits for many years without doing anything else.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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/

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.


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.

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. 

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.

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.