Who many risks in Cryptocurrency Trading?

in #trending5 years ago

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How many risks in cryptocurrency trading ?"

One of the most commonly-answered questions in cryptocurrency trading is " How many risks in cryptocurrency trading?".

There are a range of "risk" figures, but one that is more commonly associated with trading is volatility.

Voltaire himself considered the risk in trading to be the smallest of all possible risks. In fact, his famous motto was "All men look to profit, but no man looks to loss".

In addition to volatility, traders are often concerned with "volatility volatility", but that's a bit of a misnomer. It's not that there is an exact mathematical formula as such for determining how risky trading is. Instead, a more qualitative approach for determining risks would be for an investor to calculate a "risk-adjusted return", where the risk is determined by the volatility and return over the time period in question.

This can be seen in real trading terms in the above chart from E*TRADE. This is their performance at the year end period, in terms of return. The yellow line represents the daily return

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