By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Egypt’s IDA gears up to provide its services for investors online
    Egypt’s IDA gears up to provide its services for investors online 
    March 29, 2023
    Egypt. Germany discuss promotion of cooperation in communications, digital transformation
    Egypt, Germany discuss promotion of cooperation in communications, digital transformation
    March 29, 2023
    Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador
    Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador
    March 29, 2023
    Volatile trading on EGX amid anticipation of interest rate movement
    Volatile trading on EGX amid anticipation of interest rate movement
    March 29, 2023
    Mohamed Nasr El-Din appointed as new CEO of Telecom Egypt
    Mohamed Nasr El-Din appointed as new CEO of Telecom Egypt
    March 29, 2023
  • Politics
    PoliticsShow More
    Iranian FM says Tehran, Moscow taking final step toward signing long-term cooperation agreement
    Iranian FM says Tehran, Moscow taking final step toward signing long-term cooperation agreement
    March 29, 2023
    Health Minister, UNODC discuss bilateral cooperation in combating drugs, corruption
    Health Minister, UNODC discuss bilateral cooperation in combating drugs, corruption
    March 29, 2023
    UAE President appoints Khaled bin Mohamed bin Zayed as Crown Prince of Abu Dhabi
    UAE President appoints Khaled bin Mohamed bin Zayed as Crown Prince of Abu Dhabi
    March 29, 2023
    Al-Sisi directs development of imams to keep abreast of contemporary issues
    Al-Sisi directs development of imams to keep abreast of contemporary issues
    March 29, 2023
    Egyptian Health Minister directs accelerating completion of New Heart Institute in El-Shorouk 
    Egyptian Health Minister directs accelerating completion of New Heart Institute in El-Shorouk 
    March 29, 2023
  • Interviews
    InterviewsShow More
    Developers have to offer innovative products, state should provide more facilities to stimulate industry: Kareem Mamoun
    Developers have to offer innovative products, state should provide more facilities to stimulate industry: Kareem Mamoun
    March 27, 2023
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Risk Management in Cryptocurrency Market
Share
Notification
Latest News
Egypt’s IDA gears up to provide its services for investors online
Egypt’s IDA gears up to provide its services for investors online 
Business
Iranian FM says Tehran, Moscow taking final step toward signing long-term cooperation agreement
Iranian FM says Tehran, Moscow taking final step toward signing long-term cooperation agreement
Politics World
Egypt. Germany discuss promotion of cooperation in communications, digital transformation
Egypt, Germany discuss promotion of cooperation in communications, digital transformation
Business
Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador
Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador
Business
Volatile trading on EGX amid anticipation of interest rate movement
Volatile trading on EGX amid anticipation of interest rate movement
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Risk Management in Cryptocurrency Market
Business

Risk Management in Cryptocurrency Market

Daily News Egypt
Last updated: 2021/07/27 at 1:19 AM
By Daily News Egypt 5 Min Read
Share
SHARE

The cryptocurrency market is no doubt a highly volatile one. The volatility of this market makes it highly risky. Cryptocurrency traders and investors will suffer a great deal of loss if the risk is not managed. Risk is the probability of not getting the desired outcome from an investment or venture which translates to making losses. Although the cryptocurrency market is a highly profitable one, it could be a fruitless venture with little or no profit to show for it, if investors or traders are without effective means or strategy to control and minimize risks that come with the negative effect of the market’s volatility. The volatility of the market also makes it possible to get massive returns on a little investment. The market can earn one a lifetime fortune, and likewise misfortune, the difference is how well risk is managed.

Risks associated with Cryptocurrency Trading

– Price Change Risk:  The price of cryptocurrencies is not stable, and this is because of the high volatility of the market.

–  Liquidity Risk: Liquidity is an asset’s ability to be converted into cash on request. The problem of liquidity is one of several factors leading to abrupt changes in the Bitcoin price. Improved liquidity can thus contribute to reducing Bitcoin’s risk.

Managing Risks

There are several strategies one can leverage to get you over risks associated with trading cryptocurrency.

  • Using trading bots: High ranking and effective trading bots like the British bitcoin profit offers the best news trading approach by scanning billions of Twitter posts to identify volatility driving news. This makes it the best tool to speculate on Bitcoin. This is a good tool to capitalize on volatility.
  • ●       Stop Loss + Take Profit:  Stop losses save you from trading in unyielding deals. It closes an open position when a price decreases to a specific barrier. Take Profit on the other hand lets you get out of a trade before the market turns against you. Use crypto terminals like Superorder to set Trailing Stop Losses and Take profits.
  • Only put money into investments that you can afford to lose: When starting out as a trader, it’s customary for new traders to make significant initial deposits with the goal of reaping larger returns later on. Increasing your investment quantities can result in greater earnings, but increasing your investment amounts might also raise your risk of losing your investment money. Beginners must make every effort to be as safe as possible while learning the foundations of trading, which is why they should start with lesser quantities of money and progressively raise their investment over time as they gain more experience.
  • Start with small Investment: Regardless of whether or whether you have sufficient cash flow to work with, it is never a wise idea to devote every dime from the start. Instead, you must familiarize yourself with the market’s elements as well as the way the trading platform operates in order to ensure that you are obtaining the most benefit for your money. That is why you must continuously start with a little quantity of cash and, as you gain earnings, gradually raise your working capital as your business grows. This will result in the natural development of your cryptocurrency profits without the need to take any significant risks.
  • Withdraw your Profit: After every profitable trade, make sure to make a profit and deposit it into your account. This will assist you in distinguishing between your invested capital and the profit you have made so far.

Conclusion

Before investing or trading cryptocurrency at all, risk management should be your major consideration, since your aim of making that decision is to raise or get money from the market. The consequences of not managing crypto trading risks can be disastrous owing to the volatile character of the cryptocurrency market.

You Might Also Like

Egypt’s IDA gears up to provide its services for investors online 

Egypt, Germany discuss promotion of cooperation in communications, digital transformation

Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador

Volatile trading on EGX amid anticipation of interest rate movement

Mohamed Nasr El-Din appointed as new CEO of Telecom Egypt

Share this Article
Facebook Twitter Email Print
Previous Article In the world today, many tax authorities have tried different techniques to bring tax regulations on Bitcoin. Crypto Trading Simulators With the Skills Any Aspiring Trader Can Use
Next Article Agreement must be reached before GERD’s second filling: EU South Sudan’s Foreign Minister arrives in Cairo to discuss Ethiopian dam crisis
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Egypt’s IDA gears up to provide its services for investors online
Egypt’s IDA gears up to provide its services for investors online 
Business
Iranian FM says Tehran, Moscow taking final step toward signing long-term cooperation agreement
Iranian FM says Tehran, Moscow taking final step toward signing long-term cooperation agreement
Politics World
Egypt. Germany discuss promotion of cooperation in communications, digital transformation
Egypt, Germany discuss promotion of cooperation in communications, digital transformation
Business
Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador
Egypt-Australia trade exchange reaches AUD 1bn in FY2022: Ambassador
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?