More risk, more profit, and vice versa

in Project HOPE3 years ago

Everyone wants to generate good dividends, either through hard work, exercising their profession, creating one or several businesses, writing or working somehow with cryptocurrencies, trading, or any other commercial activity, however, those benefits that we could obtain are directly related to Risks, it is a great reality, unfortunately it is something in which many are not aware of.

Only thinking about profits is a serious mistake, everything is subject to change, even the levels of risks that are present in a business when we enter are not the same over the years, there are many variables that will make these risks increase or decrease, of which we will have to be very aware, so that we are not taken by surprise decrease in the rate of return.

These are complex things, I am not a specialist in this type of calculations, but it is something I have been thinking about recently, since I have some investments made a few months ago and everything has changed nowadays, and not precisely because of the current drop in cryptocurrencies, but because of changes in the rules and the profits that could be obtained in certain projects.


image.png

Source

So what was previously established that you could win, is no longer the reality, and these are details that at first I may not have fully considered.

More if they are investments in cryptocurrencies, which is not only about the amount you can earn in terms of units, but the same price volatility makes that even when you earn equal or greater amount of tokens, it may happen that the gains are not even close to what you had anticipated.

That's how strong this market is, and it's something we can't always foresee. But it is something we must learn to live with if we want to be here, learning, making profits.


image.png

Source

Something to always keep in mind is that the most profitable businesses are usually the most risky ones, it is no coincidence, at least that is what I have been able to realize these 4 years that I have been in the crypto environment.

More and more cryptocurrency projects are created, they usually offer a lot of benefits at the time of starting, but these benefits are decreasing over time, when the project stabilizes, it reaches a point where profits may not be so attractive to many, but when the project is already stable, that manages to consolidate, in general the risks tend to decrease, and these "low income " are stabilized, and allow you to feel a little more secure with the project.

So being in projects that perhaps offer less profit than others will have its point of balance by giving us a little more security of our capital, and vice versa.

I would like to know what you think about it. I'll read you in the comments.

image.png
image.png
I authorize the use of this banner to everyone who wants to do it.

image.png
josevasGIFT FINAL.gifLOGOTOP.png
Sort:  

Greetings @josevas217 💕😊

there are many variables that will make these risks increase or decrease, of which we will have to be very aware, so that we are not taken by surprise decrease in the rate of return.

This is really the part most investors or traders don't understand. I have always been having issues with newbies about this same part probably because they've always thought you have to keep winning forever not knowing there are also time for losses and that's why it's called trading and business.

Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕❤️

Greetings @ josevas217
Very interesting publication that I fully identify with it, because I am currently living it and I am sure that many also, I have some investments made and I have to wait more than I had in mind, to get some profit or just lose it, but like any investment involves a risk and I feel calm, because I know that I can also lose everything, but if I do not risk I can not win.
Thank you very much for sharing your publication

Am not scare of taking risk but I try as much as possible to look at it critically and avoid the ones that the rate of loss is greater than profit because in cryptocurrency when we want to loss money it is always huge and sometimes I control myself to avoid greed in as much as I still like money. In conclusion I prefer to invest in less risky coin so as to have some peace of mind, sometimes half bread is better than none.

Without a doubt, half a loaf of bread is better than none at all. We have to be very meticulous in investments to avoid losses, however, no matter how much we study a project, there are its risks, especially in the crypto environment.

Risk and profit have a toxic relationship, lol. Most times i try to play safe, especially in cryptocurrency. The idea is to invest what you can lose, but the drive to invest even what you can't lose will always be there.

A toxic relationship, certainly, but I like that toxicity. Resisting the urge to invest even up to what you can't lose is something that sooner or later we end up taking on at some point....

Hello @josevas217!

Talking about big investments, they always require taking risks, which is usually a step that not everyone is capable of. However, the profits of taking high risks are way better than the ones with way less risk. For me, I would choose a lower-risk investment until I can afford to take a high-risk one and be ready to cover any losses from that. The Crypto world is huge yet everyone has their own mentality.

Thanks for sharing!

You are clear on what you want in this aspect of investments, that is a point in your favor, not everyone has such clarity. Thank you for commenting.

Crypto has certainly brought us a new market and in these times it has been of great help and the convenience of working from home, but it also has its degree in the risk that is run, as you say "the most profitable businesses are usually the riskiest" and is part of this game.
Excellent work, as always

Working from home is the best, I wouldn't trade it for anything, not anymore. Thanks for your comment.

I like your details analysis @ josevas, Hawley states that profit is a reward for risk taken in business. According to Hawley, the higher the risk in business, the greater the potential financial reward is for the business owner. ... This economic theory also works on the assumption that without risk there can be no great profit for an entrepreneur. Have a nice day..

I didn't know that author, thanks for the input. I will look into it. But it is a reality.

Cryptocurrencies have certainly been helpful but more so on some platforms than others and the risk is often worth it all. Good post.

By @hojaraskita

Good investments are usually risky, without taking risk there is definitely no reward of getting any profitable returns. A lot of people however are usually scared of taking risk meanwhile they want a huge reward at the end of the day.

Thanks for the timely reminder on the need to constantly make sacrifices if we desire huge profit.

I know too many people who want big profits without risk, they are delusional.

everything is subject to change, even the levels of risks that are present in a business

Yes first of all I agree with this point. Now regarding the topic yes more risk is equal to more profit.

But it also have lots of risk and you will be risk of losing everything. But if you don't take risk you cannot see the other side of the coin.

Sometimes it is good and sometimes it is bad but it is good to take risk once in a life.

Coin Marketplace

STEEM 0.29
TRX 0.12
JST 0.032
BTC 63122.36
ETH 3072.69
USDT 1.00
SBD 3.86