Do you need risk management in Bitcoin trading?

[GoldenLady]

The best way to manage the risks associated with bitcoin and other crypto will be to learn as much about it as possible.

Another way I think will be good is to avoid having all your funds in just one cryptocurrency, but to instead, have at least 2 or 3 to reduce losses.

 

[BrolySSJ]

Risk management has the function of planning, controlling, and controlling activities to minimize risk in Bitcoin trading, so I think risk management principles need to be mastered, so in your opinion, what are the points of risk management that Bitcoin traders need to master?

I think that the most important risk management tool in the crypto world is to make sure that you are able to make decisions based on trends and knowledge rather than emotion. Emotions are what cause panic buying and selling, which leads to greater risks. However if you look at crypto and how volatile it is, you should be able to manage crypto well without involving emotions and i think that this is the most important sense of risk management.

 

[WhiteHouse]

Yes, absolutely.

1. do not sell at a loss
2. do not invest into a single currency. spread across many.
3. do not invest into currencies that aren’t already widely accepted

lastly, what’s up with this “do not invest more than you are willing to lose” mantra? everybody repeats it, but it makes no sense. i don’t want to lose anything, and i’m pretty sure nobody buys bitcoin saying “i hope i lose all of it. because you know, i’m willing to.”

 

[Nurudeen]

Risk management is very important in trading bitcoin. You need to know how to diversify your portfolio, know how to control your greed and know how to manage your emotions in trading. If you can stay put in all this you are good to go in making money with Bitcoin trading.

 

[Aniwhyte]

We don't only need risk management in bitcoin trading but also with other cryptocurrency as it is important in other not to loose all your money. As it you will be knowing the appropriate time to trade, time to sell and time to invest in another coin entirely. So risk management is very important.

 

[Erik4150]

Cryptocurrency trading is always a risky business and bitcoin is not different. Proper risk management is required to avoid loosing money. As for cryptocurrencies like bitcoin, knowing when to buy bitcoin and when to sell is very important. You have to buy only when the price falls and sell when the price rises.

 

[Ojonuyo]

Yes, risk management is very important in Bitcoin investment, because not everyone has the heart and sustaining ability to continue investing after experiencing a lost. These loses arise from the fall in price and worth value. Most times when this happens you can get to loss all your money invested. That is why it is best you go for low risk investment

 

[Highflyer]

Risk management helps cut down losses. It can also help protect a trader's account from losing all of his or her money. The risk occurs when the trader suffers a loss. If it can be managed it, the trader can open him or herself up to making money in the market.

 

[Sotherefore]

all form of online trading require a lot of risk management if not you lost all your funds in just one day that is why expert teaches newbie how to manage risks before going into the main training itself, If you cannot manage risks when you are trading then you are not likely to succeed because you might wipe out your whole account,to become a successful trader you must know how to manage risk that's how the market work

 

[Kelvin7656]

Yes one really need risk management because The rule of thumb in crypto trading is: “Do not risk more than you can afford to lose.” Given the gravity of risk in crypto trading, we generally advise traders to use not more than 10% of their budget or monthly revenue. Also, trading with borrowed money is not advisable as it puts them in a credit risk position.

 

[Tienda]

I think anything we do we need a risk management, in this case in cryptocurrency trading volatility, at any moment we can be surprised! Planing and get prepared for any surprise we get is very important.

 

[BrolySSJ]

Yes, absolutely.

1. do not sell at a loss
2. do not invest into a single currency. spread across many.
3. do not invest into currencies that aren’t already widely accepted

lastly, what’s up with this “do not invest more than you are willing to lose” mantra? everybody repeats it, but it makes no sense. i don’t want to lose anything, and i’m pretty sure nobody buys bitcoin saying “i hope i lose all of it. because you know, i’m willing to.”

The phrase of do not invest more than you are willing to use, in my opinion, is a way in which to constantly remind or rather warn the newbies that are entering into crypto that the currencies here are rather volatile and that the price can change at any point. Therefore in a way crypto is like a gamble and when you gamble you hope to win but you have to be prepared for the possibility of losing.

 

[Damscooguns73]

I think timing is the most appropriate factor to consider when considering bitcoin trading or even any form of trading. An individual needs to master the time per each trade to know which is favourable

 

[Sammyesx]

Risk taking is necessary in bitcoin trading and business in general, most successful people are risk takers, but you have to be wise in doing so, you cannot just start taking risk recklessly, your risk has to be calculated, so you don't loss all your money.

 

[Seun4luv]

Do not risk more than you can afford to lose.” Given the gravity of risk in cryptocurrency trading. We generally advise traders to use not more than 10% of their budget or monthly revenue. Also, trading with borrowed money is not advisable as it puts them in a credit risk position.

 

[shakky2]

management in bitcoin trading depends on the residual knowledge you have had on bitcoin trading.if you are vast in the trading then u might not need Management unless you feel it's reauired but if u are a novice then management is essential

 

[clandongan]

Investing bitcoin carries some well-known risks. The bitcoin price could drop fast. Bitcoin cost fluctuations are completely unpredictable in the short term, which only adds to the riskiness of this asset but to predict exactly how much Bitcoin will cost tomorrow is almost impossible.

 

[Sammyesx]

Risk management has the function of planning, controlling, and controlling activities to minimize risk in Bitcoin trading, so I think risk management principles need to be mastered, so in your opinion, what are the points of risk management that Bitcoin traders need to maste

Bitcoin trading is a risky investment, so risk management is necessary so as not to loss all the money you invested. When the trade seems not to be in the favour of the trader it is better to pull out to avoid losing excess amount of money.

 

[Adetayo100]

The rule of thumb in crypto trading is: “Do not riskmore than you can afford to lose.” Given the gravity of risk in crypto trading, we generally advise traders to use not more than 10% of their budget or monthly revenue. Also, trading with borrowed money is not advisable as it puts them in a credit risk position.

 

[Abbas ali]

Every successful man must face one risk or the other, as risk management is part of what make one successful in lifeLet me exemplify, you are holding bitcoins because the price is going up. It is 34K now