{"id":23741,"date":"2021-03-07T12:52:11","date_gmt":"2021-03-07T09:52:11","guid":{"rendered":"https:\/\/www.ibtdi.com\/?p=23741"},"modified":"2021-03-07T12:52:11","modified_gmt":"2021-03-07T09:52:11","slug":"how-to-manage-risk-when-trading-digital-currencies","status":"publish","type":"post","link":"https:\/\/www.ibtdi.com\/en\/how-to-manage-risk-when-trading-digital-currencies\/","title":{"rendered":"How to manage risk when trading cryptocurrencies"},"content":{"rendered":"
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\"Mastering<\/p>\n

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Risk management<\/a> It is the cornerstone of every successful trading strategy, before risking any real capital.<\/span><\/p>\n

With real capital, you need to define your financial goals and the amount you are willing to risk to achieve<\/span><\/p>\n

your goals. It is important to understand that you are compensated for taking on risk: the greater the risk,<\/span><\/p>\n

the greater the potential gains or losses. When trading cryptocurrencies, it is essential to<\/span><\/p>\n

identify the risks you face at both the portfolio and strategy levels.<\/span><\/p>\n

This article explores risk management methods that can reduce the inherent risks<\/span><\/p>\n

of trading cryptocurrencies, helping build greater confidence in transactions when applied.<\/span><\/p>\n

If you apply risk management methods comprehensively, you can trade \u0627\u0644\u0639\u0645\u0644\u0629 \u0627\u0644\u0645\u0634\u0641\u0631\u0629<\/a> successfully, making it a currency of<\/span><\/p>\n

the 21st century.<\/span><\/p>\n

.<\/p>\n

What is risk management?<\/strong><\/span><\/h2>\n

Risk is defined as the potential loss you may incur. You should create a profile<\/span><\/p>\n

for risk management that assesses risk at both the portfolio level and the<\/span><\/p>\n

strategy level for each trade. Once you\u2019ve created a plan, you\u2019ll need to stick to it<\/span><\/p>\n

They will help you achieve your financial goals.<\/span><\/p>\n

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.<\/p>\n

Regulatory approval<\/strong><\/span><\/h2>\n

Most of the inherent risks associated with cryptocurrencies can be mitigated through<\/span><\/p>\n

regulatory measures, which seems ironic given that cryptocurrency is a decentralized currency with no<\/span><\/p>\n

governance or regulatory framework.<\/span><\/p>\n

If achieved, some regulatory approval would imply acceptance and credibility in the eyes of the<\/span><\/p>\n

cryptocurrency community. However, not all U.S. regulators are created equal.<\/span><\/p>\n

For cryptocurrency to gain traction in the United States, it must navigate<\/span><\/p>\n

a range of diverse regulatory frameworks, including:<\/span><\/p>\n

financial-crime regulations such as the Bank Secrecy Act (BSA<\/span>) and the Office of Foreign Assets<\/span><\/p>\n

\u0627\u0644\u0623\u062c\u0646\u0628\u064a\u0629 (OFAC<\/span>), state banking departments, and the Commodity Futures Trading Commission (CFTC<\/span>)\u060c<\/span><\/p>\n

and Internal Revenue Service reporting requirements (IRS<\/span>) \u0648\u00a0FBAR<\/span>\u00a0\u0648\u00a0FACTA<\/span>.<\/span><\/p>\n

The best outcome would be regulatory approval from all of the above, but given the vested interests<\/span><\/p>\n

of each of these regulatory bodies, approval from at least two<\/span><\/p>\n

of these organizations should be enough to add credibility and trust.<\/span><\/p>\n

3 Things You Shouldn\u2019t Do When the Stock Market and Share Prices Fall<\/a><\/p><\/blockquote>\n