• Get Changera. Shop like a local anywhere you go.
Tuesday, February 7, 2023
Bitmama Blog
Changera Virtual Cards
ADVERTISEMENT
  • HOME
  • NEWS
  • PRODUCT UPDATES
  • EVENTS
  • Bitmama ACADEMY
    • Crypto Basics
    • Tips and Tutorials
    • Market Trends & Updates
    • Crypto Glossary
  • VISIT Bitmama
No Result
View All Result
Bitmama Blog
No Result
View All Result
minimize risks in crypto trading

Getting started: 3 Smart guides to cryptocurrency trading

How to use Bitcoin ATMs

How to minimize risks in crypto trading

Bitmama Team by Bitmama Team
November 21, 2022
in Cryptocurrency, Tips and Tutorials
459
1
319
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

The Cryptocurrency industry welcomes new investors by the second! However, there is no denying the fact that there are a lot of risks involved in crypto trading, mainly due to the volatility of the market and this could sometimes discourage potential investors.

We however cannot also deny the fact that cryptocurrency is here to stay, the only way of making heads way in the emerging market and its underlying technology is by seeking means to protect your funds and be smart about the risks involved and possible ways to avoid these risks.

Bitmama-crypto-card
Bitmama-crypto-card

Important precautions to take in Minimizing Risks in Crypto Trading

Below are the most important precautions to take:

Understanding the Trends of Analysis

Knowing the main principles of the analysis and their trends plays a huge role in managing risks. It helps in having a clear and complete view of the market. There are two basic types of analysis recognized in cryptocurrency:

  • Technical analysis: This is a form of trading discipline used to evaluate investments and also to identify trading opportunities by analyzing statistical trends based on recent trading activity, this includes volume and price movement.
  • Fundamental analysis: This typically involves the analysis of the measurement of a security’s intrinsic value by examining related economic and financial factors.

In addition to grasping the trends of analysis, there are also other important crypto trading strategies you need to know.

Pay-bills-from-your-bitmama-crypto-wallet
Pay-bills-from-your-bitmama-crypto-wallet

Grounded Education

There are a lot of trusted cryptocurrency organizations that have their records and achievements speak for them and there are also individuals with years of experience to learn from. Do whatever you must to speak to these individuals for guidance and participate in webinars or meetings organized by trusted organizations.

A comprehensive education package with insight on the latest security methods backed by anti-malware, backups, cold storage, strong and frequent password protection, and regular updates of software can help reduce cyber fraud risks and protect you from crypto-jacking, hacking of payment gateway, etc.

Risk Management Framework

A standard risk management framework would normally cover policies, standards, and procedures relating to cyber, fraud, operational credit, physical security assets, IT security, and data.

To be effective, the framework has to cover mostly real-life information and scenarios and it must also cover software upgrades, simply because cryptocurrency relies on technology changes and development. The framework needs to be quite comprehensive and broad, as most of the risks are not exclusive from each other.

The-best-crypto-exchange-platform
The-best-crypto-exchange-platform

Diversify

The saying “do not put all your eggs in one basket” literally applies here. There is a need to diversify your investments in cryptocurrency. On this issue, a bitcoin expert once stated “If two assets in the same portfolio move in the same direction, then gains in wealth will be greater and losses more severe.”

For example, if the price of Bitcoin sharply declines, it is commonly held that there are a few other cryptocurrency assets that will not follow. It is however a safer option to choose options correlated directly to the value of Bitcoin.

Finally, as the cryptocurrency world evolves, it is certain that more opportunities would come up to steer investors in the right direction. It is also unlikely that cryptocurrencies are going away in the near future, it is safe to say that it is a savvy choice to make. Listed above are some of the ways to keep your hard-earned money safe in cryptocurrency.

Recommended – 6 Bitcoin hacks to boost your trading

Tags: cryptocurrency tradinghow to minimize risks in crypto trading
Get Virtual Cards on Changera. Get Virtual Cards on Changera. Get Virtual Cards on Changera.
ADVERTISEMENT
Bitmama Team

Bitmama Team

Related Posts

How to start Crypto Trading
Tips and Tutorials

How to start Crypto Trading | Beginner’s Guide

February 7, 2023
buying airtime online
News

Buying Airtime Online: Steps To Follow

February 7, 2023
Online Payment Platforms In Nigeria
Market Trends & Updates

Online Payment Platforms In Nigeria

February 7, 2023
how to activate atm for online payment
Crypto Basics

How To Activate Your ATM Card For Online Payment

February 7, 2023
is zugacoin legit
Crypto Basics

Is Zugacoin Legit: All You Need To Know

February 7, 2023
how to exchange dapp token for ethereum
Crypto Basics

How To Exchange Dapp Token to Ethereum | Steps To Follow

February 7, 2023

Recent Comments

  • What is Bitcoin Mining? Beginner's Guide to Mining Bitcoins - Bitmama Blog on Crypto 101: Beginners guide to digital currencies
  • What is Bitcoin Mining? Beginner's Guide to Mining Bitcoins - Bitmama Blog on This is exactly how Bitcoin works
  • 3 Ways to Identify Cryptocurrency & ICO Scams - Bitmama Blog on Wait! Know this before you invest in Bitcoin …
  • What is Cryptocurrency ? Beginners Guide to Digital currency - Bitmama Blog on This is exactly how Bitcoin works
  • What is Bitcoin and How Does it work? - Bitmama Blog on HODL or FOMO? Here are some crypto lingo every trader should know

Categories

  • Crypto Basics
  • Crypto Glossary
  • Cryptocurrency
  • Events
  • Featured
  • Featured
  • Learn
  • Market Trends & Updates
  • News
  • Product Updates
  • Technology
  • Tips and Tutorials

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
ADVERTISEMENT
  • Get Changera. Shop like a local anywhere you go.

© 2022 Bitmama - Best platform to buy, sell and trade Cryptocurrencies.

No Result
View All Result
  • HOME
  • NEWS
  • PRODUCT UPDATES
  • EVENTS
  • Bitmama ACADEMY
    • Crypto Basics
    • Tips and Tutorials
    • Market Trends & Updates
    • Crypto Glossary
  • VISIT Bitmama

© 2022 Bitmama - Best platform to buy, sell and trade Cryptocurrencies.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In