Fundamentals of Risk Management in Cryptocurrency Trading

Types of risks

There are risks in any financial transactions, there are quite a lot of varieties.

For example:

  • market risk - the risk of an unfavorable change in the value of an asset;
  • credit risk - the risk of bankruptcy of the cryptocurrency issuer or failure to fulfill its payment obligations;
  • liquidity risk - the risk of being unable to convert the entire position volume into fiduciary currency (or equivalents) at the best prices;
  • operational risk - the risk of being unable to perform trading operations or deposit / withdrawal of assets.

These and many other risks affect the operation and stability of financial markets and individual participants.. When a financial institution or corporation defaults, suffer losses from transactions in financial assets or in operating activities, this negatively affects the prices of the respective assets. Такое положение дел обычно идет вразрез с интересами стейкхолдеров.

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Each has its own probability?

Well, при подходе к важным уровням лагерь разделяется — кто-то начинает усиленно шортить, as the market has already come a long way up and the probabilities, in their opinion, shift towards the shorts. Someone, like rezvyakovtsy, will buy, since the likelihood of the trend continuation, in their opinion, always more than the other way around. All in all, each has its own probability, what is alarming. In my opinion, the probability is always the same.
And what, if it doesn't go up or down, but chatting back and forth in a narrow range, bumping feet and at one camp and at another, which in my opinion is most likely, так как никто такого сценария не описывал — все либо вверх, either down, and the minority always wins.

Well, при подходе к важным уровням лагерь разделяется — кто-то начинает усиленно шортить, as the market has already come a long way up and the probabilities, in their opinion, shift towards the shorts. Someone, like rezvyakovtsy, will buy, since the likelihood of the trend continuation, in their opinion, always more than the other way around. All in all, each has its own probability, what is alarming. In my opinion, the probability is always the same.
And what, if it doesn't go up or down, but chatting back and forth in a narrow range, bumping feet and at one camp and at another, which in my opinion is most likely, так как никто такого сценария не описывал — все либо вверх, either down, and the minority always wins.