Risk and Risk Management [The concluding part]

^freepik

Hi friends, welcome back to this space. I feel more than excited each time you breeze in to read up what I prepare. I want to believe you're getting value from everything I dish here. Keep showing up here again and again as I won't stop dispensing these stuffs...just the way you love them.

So far, we have discussed extensively on Risk and Risk Management. We defined it, talked about diverse kinds and how to manage. I decided to warp it up with it Importance today. I also added a little more point on how to manage these risk, it more like an addition to the point shared in my last post. So friends let get into it right

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Risk management Strategies (additional points)

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So here we go, I deemed it fit to add these two extra point to what was shared in the last post...

• Choose Trusted/Reliable Crypto Trading Platform.

Here is another way of managing potential risk in this space. You would always have to transact such as trading, buying, selling, swapping and the likes. Your best bet is to get a platform that is trusted so you don't end up in some messy situations.

I would love to recommend that you go for exchanges that have stood the test of time and not the new emerging ones. Am not trying to "demarket" them, am just saying that water needs to be tested over time before you commit you resources into.

Test the security layers of Whatever platform or exchange you're gonna be using is key. I would have love to mention some exchanges but nah! I didn't come here to do some paid adverts...lols

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• Go for good storage options

This point cannot be overemphasized. You would always need a storage for your Cryptos, it's therefore imperative to look out for good ones just as you've done in the case of exchange. You could go online to make your findings about the perfect one for you.

And lastly, always do your research on every step you're going to be taking. This point to me stands tall among others. There are so many information out there flying all around. If we are to follow all blindly no matter how well meaning they sound, we would definitely harm ourselves. Hence the need to DYOR.

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Importance of Risk management

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In this segment, we would be considering the importance of subscribing to Risk management in every of our activities in this space (crypto). Enjoy the ride.

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• Reduces Loss:The goal of every trader is to make profit from his trade. I know it quite impossible never to lose a trade but then the level of loss can always be controlled to the minimum. With risk management, losses can be checked by putting every necessary thing in place.

If you're a trader, the use of stop loss, good entry and exit strategy, tested and trusted risk reward ratio would go a long way in saving you a lot of headache in the market. All these is to the end that your loss is brought down to the lowest.

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• Capital Preservation : it is one thing to make losses from trade, it is another thing to make losses that wipes off ones capital. Capital is suppose to be what is invested to bring in the desired profit but when it's tampered with, it means the case is closed.

Every trader try as much as possible to ensure that have their working capital intact and this they have successfully done using Risk Management strategies. It's actually your best bet if you really want to keep your capital safe.

^freepik

I've heard people say things like "I just blew up my account"...hmmmm. That invariably means they will be starting all over again because everything is completely gone.

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• Emotional Control: Risk management helps keep your emotion in check. It helps stabilize your mind and put it in order. Someone with a very good risk management and trading plan would not be swayed or tossed back and forth like the wave of the sea

They feel so calm and reserved and would always like to take informed decision rather than decision made from impulses sponsored by FUD or even greed/fear.

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• Sustainability: I know we have always wondered sometimes how some businesses stay afloat and survive for years in spite of different harsh economic situation they have faced over the years.... Well the truth is that they have mastered our topic of discussion, risk management.

It is true that this is not all there is to the solid success but it definitely one of it. A good risk management will help you flourish in the market until you compromise. In other words, it create sustainability which every trader would love to enjoy.

So many rushed into the market in the past but they are no where to be found as they are completely recked and shown the exit. So you see, the need for risk management can't be overemphasized.

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• Safety:Let me add this to it as well...I hope you know risk management is not limited to just trading alone. I mentioned different areas where risk management can be applicable and that includes the use of wallets for holding crypto. There are several risk attached to the use of wallet.

You're automatically a target to hackers and scammers when you have something substantial in your wallet. But when you learn how to walk your way around this, you would definitely be saved from these malicious players.

^freepik

One of these measures include keeping your active key safe by all means, avoiding unwarranted link and mails and storing your keys properly so you don't risk losing it. Experts have advices that you write it down somewhere i.e on a piece of paper.

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Conclusion

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There you go friends.I would love to wrap it up at this juncture. I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.

Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!

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^{Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.}

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Regards
@lhorgic♥️

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