Assessment ratio of risk compliance with investments in crypture
The world of cryptocurrencies has developed quickly since its inception, and prices floated uncontrollably between ups and downs. While some investors have made a significant profit, others have lost wealth due to unhappy investment. A key factor that determines the success of the Crypto currency is its relationship to risk between gains and potential losses.
What is the risk that suits?
The ratio ratio refers to the measure to justify the potential refund of investment levels. In other words, how many times the potential gain is compared to the amount lost in a particular period. A higher ratio of regular risk indicates that the investor has more room for growth, as well as less likely to lose the overall investment.
Factors that affect the risk-assembled with
Several factors may affect the relationship between the Crypto currency, including:
- Volatility : Cryptum prices are known for their unpredictability and extreme volatility. Higher balance price can significantly increase gain and potential loss.
- This may lead to increased commercial activity and lower prices, which potentially affects the ratio of risk.
3 High risk exchanges or low safety wallets are especially harmful to the risk -ordered ratio.
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Examples of cryptocurrency with a high relationship in accordance with the risk
Several crypto currencies have a high rate of risk reward because of its unstable nature or other factors:
- Bitcoin (BTC)
: With a market capitalization of over $ 2 trillion, Bitcoin is one of the most famous and widely traded currency currencies. Although its potential reward can be significant, its volatility and lack of central government make it an extremely high investment.
- Ethereum (ETH) : As the second largest market value of the crypto currency, Ethereum has passed significant prices changes in recent years. His problems of volatility and scalability also contributed to their relationship with the raising of the risk of being relatively low.
Examples of Crypto Currency with Low Risk Relationships
On the other hand, some crypto currencies have greater relationships in accordance with the risk because of their most stable nature:
- His low volatility makes him an attractive option for investors seeking a higher risk reward.
- Dogecoin (Doge) : As one of the latest Crypto currency, Dogecoin has been significant in recent months. Although its price floated uncontrollably, its relatively stable market capitalization and limited supply make it more attractive than some other options.
Investment Investment Strategies Cryptocurrency
For effective risk management-adequate:
- Diversify your portfolio
: Spread investments in various cryptocurrencies to reduce exposure to any particular property.
- Research and duty : conduct a complete research of each crypto currency before investing, including its pile of technology, market trends and potential risks.
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- Use stopping orders : Set the price level at which you will sell or close the loss limit position if the price drops significantly.