Risks of Crypto Trading - Crypto Economy

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Altcoin Fantasy, Teaching Crypto Trading Risk-Free

Altcoin Fantasy, Teaching Crypto Trading Risk-Free submitted by prnewswireadmin to cryptonewswire [link] [comments]

Key Factors of Crypto Trade Risk Management

Key Factors of Crypto Trade Risk Management
Every pro trader uses risk management when talking about Bitcoin trading strategies and it’s one of the most important elements to successful trading.

To better help traders manage the risk, DueDEX has designed the Risk Manager.

Check out the guide: http://ow.ly/TPGh50yMEkK


https://preview.redd.it/9nqtnu2t46n41.png?width=1624&format=png&auto=webp&s=362e29a49f95ad132aaad2b0bb6906f7c4283873
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Blog: New Crypto Strategy going public. Momentum Trading comes from a hedge fund environment and covers the risk/reward approach.

Blog: New Crypto Strategy going public. Momentum Trading comes from a hedge fund environment and covers the risk/reward approach. submitted by GregorKobal to ICONOMI [link] [comments]

Risk management in crypto leverage trading

Risk management in crypto leverage trading
If you are looking forward to improving your risk management, consider taking a look at the fifth episode of #DueDEXConnect on our website.

Plenty of food for thoughts!

http://ow.ly/I0fb50AB6MI

#Crypto #CryptoTrading #Bitcoin #RiskManagement


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How to Best Manage Risk in Crypto Trading? | Crypto Markets Live With Charlie Burton and Naeem Aslam

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Risk Management in Crypto Trading

Risk Management in Crypto Trading
Author: Gamals Ahmed, CoinEx Business Ambassador
Financial risk management is one of the most controversial topics in trading. Traders want to reduce the risk and potential loss, but on the other hand, these traders also want at the same time to get the best profits. It is known that in order to obtain greater returns, you also need to take greater risks.
Some may consider trading an entertaining and difficult pastime, but everyone should be aware that the most important aspect of trading is risk management.

What are the different risk management techniques used in trading?

Long-term trading
Stock market traders use historical data to make long-term strategic business decisions. The long-term cryptocurrency strategy depends on current activity, and you will be more inclined towards hopeful information rather than reliable information and more suitable for cryptocurrencies.
Short term trading
Short-term traders benefit from the volatile cryptocurrency market by using swing trading when the price differs in short bursts of movement.
Technical Analysis
Technical analysis of cryptocurrencies requires research into project that affect the market based on price and volume data available through analytical technology.
Fundamental analysis
Traders often look to blogs and information sites and study the whitepaper for cryptocurrencies or cryptocurrency community forums.
https://preview.redd.it/bcdhftsba0351.jpg?width=864&format=pjpg&auto=webp&s=4763c03a2d5ecaa082cfa78ed3693c0d7e1186e0

Why should you stick to risk management?

You can get a series of successful deals based on good luck. You can also get a series of bad deals that depend on luck and feel.
It even happens to successful, experienced professional traders that they lose 10 trades in a row. Without risk management, this could result in your capital loss and final exit. The most important goal in trading is to stay in the market and preserve your capital. As long as you are in the market, you can recoup your losses.
If you lose 10% of your capital, this means that you must make a profit of 11.1%. If your budget is $ 1,000 and you lose $ 100 ( ~ to 10%), you’ll have $ 900. $ 100 is 11.1% of that.
This means that losses hurt more than profits of the same size. This becomes worse with more losses. If you lose 50% of your capital, you must double your money to offset the loss.
The new trader’s rule for managing at most risk is 1% of the capital for each trade. If you lose 10 deals in a row (which is unlikely) and lose 1% each time, how much do you have left? Still 90%.
If you risk 2%, what remains for you after losing 10 recurring deals is only 81% of the capital. You have to make 11% or 23% profit to make up for it. Even if you lose 100 deals in a row with a 1% risk management plan in hand, you still have 37%.
A seasoned trader may use 2% occasionally. A trader who risks 10% disappears quickly.
You might be wondering, if I decide to follow risk management with just 1% in the deal, does this mean that I can only invest 1% of the capital for each transaction? No. This is the ratio for determining the maximum acceptance of a loss from a single trade.
Initial decisions
I assume you know your total capital, no matter if it is $ 100 or $ 1 billion. The main point is to have a specific budget available. Do not use borrowed money, which you have to repay in a deadline. Do not use money you need in the future. If you are emotionally attached to this money, these emotions will make you feel stressed. You want to be a successful trader and not an emotional gambler.
The next step is to find a deal. It does not matter if you do this daily and trade specific currencies or not. You have tools like fundamental and technical analysis to research deals. Immediately before entering into a trade, there is a basic calculation that must be performed:
Determine the entry price, stop loss and the amount of risk.
Well, the risk is easy. We already know that we will choose 1%.
The entry price is also easy. It could be the current market price or the limit you set for your order.
Now, stop loss: it is necessary to know and set the stop loss before entering a trade. Another rule is that you are not allowed to adjust your stop loss afterward to accept more losses.
How to determine the stop loss? Technical analysis is the only method available regardless of the random selection of something. Perhaps you will use something like “beyond the next support level (or resistance)” or “the other side of the trend line we just broke”.
Now we have the four components of risk management: budget size, entry price, stop-loss and risk-taking. The time to use the calculator.
The size of the deal
Now to find out how much money you are allowed to invest in this deal.
Transaction Size = (Risk Size * Budget) / (Entry Price — Stop Loss)
For example: If you have a budget $ 1,000 and want to buy bitcoin for $ 2,300 with a stop loss $ 2,200 and a risk 1%, then this means: The deal size is (1% * $ 1,000) / ($ 2,300 — $ 2,200) ) = $ 10 / $ 100 = 0.1.
So in this example you are allowed to buy 0.1 Bitcoin units for this trade.
You must make this account before every trade! Even if you do, you will encounter errors sometimes, but risk management will help you to preserve your capital. Courage will shout at you to take greater risks, because you are very sure of your prediction. But always remember, to succeed you must stick to your stop loss and strategy.
Setting goals
Before entering into a position, you must also have a target price in mind for sale. The risk must be doubled. If you risk 1% of your capital, the potential profit must be 2–3% of your capital. If the goal for profit is equal to stopping the loss, you must stay away from trading and ignore this deal.
This does not mean that you will always reach or lose your goal. You are allowed to manually track stop loss or exit early. However, the goal should be possible given the volatility of the market you are in.
Level of risk
Well, I got away from the plan and ignored your strategy. The deal entered without due diligence. whatever. How much risk did you just take?
You know your budget, entry price and deal size. You must quickly define the next stop loss. How much risk?
Risk = (Trade Size * (Entry Point — Stop Loss)) / Budget
For example, I bought 0.3 bitcoin at a price of $ 2,500 with a budget of $ 1,000. Stop loss is $ 2345. This means that the risk is (0.3 * 155 dollars) / 1000 dollars = 4.64%.
Risk reduction
Now for some good things that can’t be used practically, however, the concepts are sound. Why the reader may ask 1% risk? Is it just a rule? Is there an ideal ratio? In theory, yes there is. We can use the Kelly standard. The formula is simple:
Risk = p-((1-p)/r
Getting those variables P and R is difficult. You have to know your profit rate, which is the number of times your goals are reached. You also need a profit-to-loss ratio, which is the average profit per trade.
For example, if you earn 47% of the time and 117% of your average capital, then the ideal risk is 1.7%.
In practice you don’t really know this specifically or variables p and r, so I recommend sticking to 1% as the basis for risk management.

Risk Management Tips for Cryptocurrency Investment

1. You should never risk more than you can afford to lose.
However, this error is very common, especially among Crypto traders who are just starting out. The Crypto market is very difficult to predict, so traders who want to invest more than they can actually put themselves at risk of market and losing their money.
2. Don’t trade by all of your capital at same time.
Anything can affect the Crypto market. The smallest news can affect the price of a particular currency in a negative or positive way. Instead of trade with everything you own”, it is better to follow a more moderate path and trade reasonable amounts of your capital.
3. Improve your risk management performance
Fortunately, there are several ways to help avoiding these mistakes and avoid loss. You must have a well-tested trading plan that includes all the details of managing financial risk in Crypto. The trading plan should be practical — and you should be able to follow its steps easily. Experts recommend that it is better to focus on high-probability deals.
Crypto trading involves a high degree of risk, so it is essential that you be disciplined in all of your financial transactions. You should also be able to pay extra attention to your past mistakes, and practice trading activities in a demo account first. The time and effort you spend in creating a trading plan is often considered a major investment that helps you achieve a profit-able future.
4. Control your emotions and risk management
As a Crypto trader, you need to be able to control your feelings and emotions towards your open, future, and closed positions as well! If you cannot control your feelings, you will not be able to reach a position where you can make the profits you want to trade. Market sentiment can often trap traders in volatile positions in the market. This is one of the most common market risk for Crypto trading. Those with stubborn nature tend not to do well in the Crypto market.
These types of traders tend to wait too long to exit the trade. When a trader realizes his mistake, he must leave the market as soon as possible, to take the least possible loss. Waiting too long can cause you to lose a large portion of your capital. Once you exit the deal, you need to be patient and re-enter the market when it presents a real new opportunity.
5. Basic concepts in risk management
To reduce the financial market risk for trading Cryptocurrency, you will need to remember some of the basic points mentioned below:
The evaluation of money changes, and often affects companies and individuals participating in global stock exchanges.
Liabilities, assets and fund flows are affected by changes in exchange rates.
By trading small amounts of your capital and monitoring market movements, you will be able to see these concepts take hold throughout your daily trading sessions.
6. Important tips for developing a risk management plan model
Below is a series of simple tips that you can consider and include in the financial risk management plan model when trading Crypto, which may help you reduce trading losses associated with market risks:
1. Stop losses
Trading without a stop loss is like driving a car without braking at full speed — it won’t end well. Likewise, once your stop loss is set, you should never lower it. There is no point in having a safety net in place if you are not going to use it properly.
The goal of stopping a loss is to limit the size of the potential loss in order to be able to in-crease your total profits, and what needs to be done on the other side is to set profit-taking orders as well!
2. Do not link all your investments in one place
This applies to all types of investment, and Crypto is no exception. Crypto should be part of your portfolio, but not complete it. Another way that you can expand it is to invest or trade more than one crypto coin.
3. The general trend is your companion
You may have made the decision to be a long-term trader, with plans to keep these deals for an extended period of time. However, regardless of the deal you ultimately decided to take, you should not resist current market trends or movements. There will always be strong players in the market, and the best way to keep up with them is to absorb such changes and follow the general trend, and change your strategies to reflect this.
4. Keep teaching yourself
The best way to learn the financial risk management system in Crypto and become an efficient and successful Crypto trader is to know how the market works. However, as we mentioned earlier, the market is constantly changing, so if you want to stay ahead of your game, you have to be always ready to learn new things and update yourself about market changes.
5. Use the plug-in
To advance in Crypto, you may want to use some trading software that can help you settle your choices. However, these systems are not ideal, so it is best to use them as a consulting tool, and something to refer to rather than use as a basis for making business decisions.
6. Limiting the use of leverage
It can be very tempting to use leverage to make big profits. However, this can make it easy for you to lose a huge portion of your capital, too. So do not support the use of giant leverage. All it takes is one quick change in market direction, and you can easily delete your entire trading account.
Crypto risk management is not difficult to understand and implement. But in order to invest in any financial instruments, whether it be bonds, exchange-traded funds, stocks, contracts for the difference in prices or cryptocurrencies, you need to acquire advanced knowledge in the field of risk management. The hard part is having enough self-discipline to adhere to the rules of this risk management plan as the market moves against your positions.
The content is for opinion sharing only and should not be relied upon to make any investment decisions.
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@binance: RT @cz_binance: As the winter ice begin to thaw and more people getting into #crypto, please learn risk management. Don't risk everything you have on one trade or even one asset. Stay #SAFU.

@binance: RT @cz_binance: As the winter ice begin to thaw and more people getting into #crypto, please learn risk management. Don't risk everything you have on one trade or even one asset. Stay #SAFU. submitted by rulesforrebels to BinanceTrading [link] [comments]

@cz_binance: As the winter ice begin to thaw and more people getting into #crypto, please learn risk management. Don't risk everything you have on one trade or even one asset. Stay #SAFU.

@cz_binance: As the winter ice begin to thaw and more people getting into #crypto, please learn risk management. Don't risk everything you have on one trade or even one asset. Stay #SAFU. submitted by rulesforrebels to BinanceTrading [link] [comments]

Copper Claims New Tool Removes Credit Risk From Crypto Trading - CoinDesk - CoinDesk

submitted by prnewswireadmin to cryptonewswire [link] [comments]

Copper Claims New Tool Removes Credit Risk From Crypto Trading

Copper Claims New Tool Removes Credit Risk From Crypto Trading submitted by a36 to AllThingsCrypto [link] [comments]

Copper Claims New Tool Removes Credit Risk From Crypto Trading

submitted by Ranzware to BitNewsLive [link] [comments]

One of our contacts are giving our community some good inputs on Crypto-Trading. https://www.binance.com/en/futures/funding-history/3 TOP 20 % traders Looks like BTC Futures on Binance and other places are Long - Going for a major uptrend, but guys remember your stop limit / loss to reduce risk.

One of our contacts are giving our community some good inputs on Crypto-Trading. https://www.binance.com/en/futures/funding-history/3 TOP 20 % traders Looks like BTC Futures on Binance and other places are Long - Going for a major uptrend, but guys remember your stop limit / loss to reduce risk. submitted by Rhine19 to u/Rhine19 [link] [comments]

One of our contacts are giving our community some good inputs on Crypto-Trading. https://www.binance.com/en/futures/funding-history/3 TOP 20 % traders Looks like BTC Futures on Binance and other places are Long - Going for a major uptrend, but guys remember your stop limit / loss to reduce risk.

One of our contacts are giving our community some good inputs on Crypto-Trading. https://www.binance.com/en/futures/funding-history/3 TOP 20 % traders Looks like BTC Futures on Binance and other places are Long - Going for a major uptrend, but guys remember your stop limit / loss to reduce risk. submitted by Rhine19 to IEOnews [link] [comments]

One of our contacts are giving our community some good inputs on Crypto-Trading. https://www.binance.com/en/futures/funding-history/3 TOP 20 % traders Looks like BTC Futures on Binance and other places are Long - Going for a major uptrend, but guys remember your stop limit / loss to reduce risk.

One of our contacts are giving our community some good inputs on Crypto-Trading. https://www.binance.com/en/futures/funding-history/3 TOP 20 % traders Looks like BTC Futures on Binance and other places are Long - Going for a major uptrend, but guys remember your stop limit / loss to reduce risk. submitted by Rhine19 to airdrops [link] [comments]

I have identified the greatest risk all traders face

TLDR? HoDL
After a lot of reflection and research, perusing over anecdotes by other traders, and an assessment of the significant amount of FUD I see, the results are in......the biggest crypto trading risk is you......let that sink in a moment. Yes YOU are the biggest risk to your future wealth. What is one of the biggest reasons early ETH and BTC adopters aren't stupidly rich? They were "smart" and sold for healthy gains in the best case. Or maybe they lost their stacks trying to market time. Maybe, thinking it was a NEO style pump and dump they sold and walked away. Whatever the reason, they got off the ride.
Now assuming you don't buy shit coins and are in the good ones ETH and OMG, literally walk away from this for as long as you have the sand to do so. Each day we look at these charts and the news is but a sliver in the bigger picture. What we are dealing with isn't a fad or a trend, it is the birth of a major wealth generation engine. It is basically unprecedented. And when the rest of the world realizes what is at stake, the FOMO will be so large you won't be able to walk away because people will be talking about it 'out there'....like a 2008 style inverse crash.
If anyone out there has 401k's or IRAs where you watch the small tics up and down over so many years, treat crypto like that, you will not be sorry you did.
Obviously, you can buy and sell and increase your stack but your tax rate within the year will be at the short term gains rate, which is much worse than long term (15%). If you are clever you can find ways to make it zero, legally.
Note: effect will be magnified if you got in stupidly early or threw stupid fiat at this engine, or both. If timing the stock market isn't really possible, timing this market is even less so. And I see some of you sitting there saying, nah I can time it and have done well. Good on you, but I hope you know who you are up against in this zero sum world.
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Crypto Trading Gets the Boost it Deserves. The DueDEX Risk Manager™ Brings Protection to Derivative Markets

Crypto Trading Gets the Boost it Deserves. The DueDEX Risk Manager™ Brings Protection to Derivative Markets submitted by a36 to AllThingsCrypto [link] [comments]

DueDEX Announces Risk Manager Tool to Absorb Risks While Trading Crypto

DueDEX Announces Risk Manager Tool to Absorb Risks While Trading Crypto
"Risk management in crypto trading is a very sensitive issue for newbies and professionals. The DueDEX team is attempting to solve this with a game-changing trading tool" - Vladislav Sopov

#DueDEX #Crypto #Derivatives #Trading #Exchange

Link here: https://u.today/duedex-announces-risk-manager-tool-to-absorb-risks-while-trading-crypto

https://preview.redd.it/ahmyweo8nyj41.png?width=718&format=png&auto=webp&s=26515cecb0b430d55eb36a63b8802bf5cab540d5
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/learn-crypto-trading is becoming an epic repository of information

Building a repository of information on everything related to trading crypto, it serves as a good resource for systematic study and content creation.

Pull-requests welcome!

https://github.com/infominer33/learn-crypto-trading

Contents

Other Files in the Repository

pinescript.md - Learn Pinescript and some TradingView tipsntricks.

Join me in Discord if you'd like to chat:
Crypto SuperSource - https://discord.gg/ahTuPMY

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Crypto Capital and Bitfinex’s missing millions: Reggie Fowler of Global Trading Solutions was indicted on Tuesday. The US Government has filed a motion to detain him as a flight risk. And it's amazing.

Crypto Capital and Bitfinex’s missing millions: Reggie Fowler of Global Trading Solutions was indicted on Tuesday. The US Government has filed a motion to detain him as a flight risk. And it's amazing. submitted by dgerard to Buttcoin [link] [comments]

#Learningmondays CRYPTO GLOSSARY Margin trading accounts are used to create leveraged trading It increases your risk of loss in trading due to high leverage position in the market

#Learningmondays CRYPTO GLOSSARY Margin trading accounts are used to create leveraged trading It increases your risk of loss in trading due to high leverage position in the market submitted by digitalticks to u/digitalticks [link] [comments]

The crypto market is a known as a very risky and remarkable market attracting considerable attention. Bankdex aims to establish a training system for beginners in order to boost their risks before entering the real trading world to carry out transactions.

submitted by Ugodan to BankdexICO [link] [comments]

Top 10 things to follow to minimize the risk of loss in crypto trading

Research on the market sentiments, follow news & make informed decisions. Follow advanced charts, never forget to see support and resistance. Automate the process in trading to never miss any opportunity. Follow high performing leaders in your circle, learn from them & execute accordingly.
Backtest first your allocations, a well-conducted backtest will help in generate results and analyze the risk involved before going to live trade. Diversify your trades, never go all in. Do paper trade first & build strategies before jumping into live trades. Trade only with that amount what you can afford to lose. Trade on good exchanges or trading platforms. Lastly, never forget to put stop loss
submitted by scottyy12 to CryptoCurrency [link] [comments]

Cryptocurrencies Trading Strategies  Risks and Opportunities with Crypto Fund Manager Ari Paul Risks of Trading in CryptoCurrencies Trading Crypto 101: Risk Management The risks of bitcoin trading - YouTube 5.8 Risks Of Investing In Cryptocurrency

The exchange: Exchanges are where you trade the cryptocurrency tokens (see Chapter 4 of Cryptocurrency Investing for Dummies for more information). You need to make sure that your trading host is trustworthy and credible. There has been countless numbers of security incidents and data breaches in the crypto community because of the exchanges. Beware Of Crypto Risks - 10 Risks To Watch. These types of issues are being remedied as more institutional investors enter the space and more markets and trading platforms open. In the Even binary options trading / forex related sites will allow you to place bets and wager on whether you think the value of Bitcoin will rise or fall over any given time period. There are some huge risks that you should be aware of. When you trade and bet on the value of Bitcoin, you run the real risk of losing your investment. 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. In order to Hedge Crypto Trading Risks, there are several things to consider first: #1 Diversification. Diversification is a common way of mitigating cryptocurrency trading risk in the market. Diversification is all about maintaining a healthy mix. In the stock market, there are a multitude of industries.

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Cryptocurrencies Trading Strategies Risks and Opportunities with Crypto Fund Manager Ari Paul

**Cracking Crypto** The #1 source for Cryotocurrency trading, mining, and events! Join Cracking Crypto team membe JayWiseFree for an informative lecture on a fundamental principle of trading, risk ... In this episode, we learn how some of the most advanced and sophisticated crypto fund managers are trading them, beginning with Ari Paul. How are crypto fund managers managing risk? The Risks of Investing in Cryptocurrency I Fortune - Duration: 2:02. Fortune Magazine 7,391 views. ... Bitcoin Live Trading - MONTHLY ENGULFING!! - Tom Crown Tom Crown 324 watching. -Investing Strategies from Buy and Hold to Active Trading of Cryptocurrency -ICO (Initial Coin Offerings) Risks and Rewards and how they compare to stock market IPO's. -Using Fundamental Analysis ... In this episode of Blockchat with Pat with Damien Moser, Head of Sales at Napoleon Group, we mainly discussed the optimization of liquidity in crypto, the strong topic of regulated products, risk ...

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