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Cryptocurrency discussions / Re: MANAGING RISK IN THE CRYPTO MARKET
« on: January 14, 2024, 10:12:39 AM »
Risk management is very important in trading because of the volatile nature of cryptocurrency. It is good that you make your research, for you to know the right coins to invest in. Trading is something that needs special skills because of its complexity, and for that when you want to go into trading, you should know that you must run at loss, because even professional traders run at loss too. From my own side, I don8see diversifying into various coins because the risky will even be more higher compare to when you are dealing with one coin. However, this depends on the coin that you want to trade with. For example, we all know that bitcoin is king amongst other cryptocurrency. Therefore, whoever buys bitcoin, don't need to diversify into any other coin. This is because bitcoin price movement controls altcoins. I will say that the best way to trade is to use only the amount of money that you can afford to lose, so that if the market goes in opposite direction of your plans, you wouldn't regret it, because you will not become emotional.