Risk management in crypto

[GoldenLady]

With the very high volatility of cryptocurrency, and how Bitcoin controls market direction most of the time, it's good to practice risk management so you don't lose all your capital.

There are numerous ways to do so. One of which is to always have some extra stablecoins left as liquidity to buy coins you want in any dip.

Another way is to not hold onto a loosing trade but instead accept losses and moving on. This makes it very important that you plan your trades so at least half can be profitable.

 

[Monster Masterpiece]

I know such a feature is available in Uphold where you could receive crypto and store USD and then after you trade your USD to crypto again as they provide deposit address for USD account in BCH, LTC, ETH, MANA ...etc

 

[Xantus]

Learning to take loss is a key risk management practices that most traders need to adopt

 

[Monster Masterpiece]

Learning to take loss is a key risk management practices that most traders need to adopt

Take loss stops further losses means it is expected you lose 20 $ but take loss stops at 5 $ loss for example like target profit could limit earning even stop loss to limit losses as simple as that.

 

[Flower]

It is very good to have a good knowledge around the risk management in cryptocurrency because this type of investment is a very risky venture.

 

[Nomad]

If you want to manage the risk, try investing in safer crypto assets like Bitcoin and Ethereum. Or diversify your investment by investing in the traditional market.