{"headers":{"Content-Type":"application\/x-www-form-urlencoded"},"body":"source_lang=&target_lang=PT-PT&tag_handling=xml&split_sentences=1&preserve_formatting=1&text=Risk+Management+in+Crypto+Trading%3A+Simple+Rules+to+Follow&text=The+rules+of+the+risks+attached+to+cryptocurrency+trading+don%27t+need+to+be+impossible+to+follow.+In+this%2C+we+explore+risk+trading+and+how+to+manage+your+crypto+assets+safely.&text=Risk+refers+to+the+probability+of+a+negative+event+happening+in+your+activities%3B+an+event+that+goes+contrary+to+your+intended+outcome.+Risk+is+part+and+parcel+of+the+cryptocurrency+trade.+It+is+the+chance+of+an+undesired+outcome+on+the+trade%2C+which+translates+to+making+losses.+For+instance%2C+a+50%25+risk+on+a+short+position+simply+means+that+there+is+a+50%25+probability+that+the+Bitcoin+price+will+rise%2C+resulting+in+a+loss+on+your+part.%0A%0AToday%2C+we+take+you+through+the+simple+rules+to+follow+when+managing+risk+in+%3Ca+href%3D%22https%3A%2F%2Fwww.coininsider.com%2Fpt-pt%2Fcrypto-trader%2F%22%3Ecrypto+trading%3C%2Fa%3E.%0A%3Ch2%3ETypes+of+Risk%3C%2Fh2%3E%0AThe+crypto+trading+world+is+exposed+to+four+main+types+of+financial+risks%3A%0A%3Cul%3E%0A+%09%3Cli%3E%0A%3Ch3%3ECredit+Risk%3C%2Fh3%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0AThis+risk+affects+crypto+projects.+It+is+the+probability+of+the+parties+behind+the+crypto+project+failing+to+fulfill+their+due+obligations.+Credit+risk+is+mostly+attributed+to+theft+and+fraud+in+the+crypto+market.+A+good+example+is+the+hacking+of+Binance+in+2018%2C+which+led+to+over+%2440+million+loss.%0A%3Cul%3E%0A+%09%3Cli%3E%0A%3Ch3%3ELegal+Risk%3C%2Fh3%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0ALegal+risk+refers+to+the+probability+of+a+negative+event+occurring+with+respect+to+regulatory+rules.+For+instance%2C+a+ban+on+cryptocurrency+trading+in+a+specific+country.+A+practical+example+of+legal+risk+is+when+the+states+of+Texas+and+North+Carolina+issued+a%3Ca+href%3D%22https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-01-16%2Fbitconnect-closes-exchange-as-states-warn-of-unregulated-sales%22%3E+cease-and-desist+order+to+Bitconnect%3C%2Fa%3E+cryptocurrency+exchange+due+to+suspicion+of+fraud.%0A%3Cul%3E%0A+%09%3Cli%3E%0A%3Ch3%3ELiquidity+Risk%3C%2Fh3%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0ALiquidity+risk+in+respect+to+crypto+trading+refers+to+the+chance+of+a+trader+being+unable+or+incapacitated+to+convert+their+entire+position+to+fiat+currencies+%28USD%2C+YEN%2C+GBP%29+that+they+can+use+in+their+every-day+spending.%0A%3Cul%3E%0A+%09%3Cli%3E%0A%3Ch3%3EMarket+Risk%3C%2Fh3%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0AMarket+risk+refers+to+the+chance+of+coin+prices+moving+up+or+down+contrary+to+your+desire+in+an+open+position.%0A%3Cul%3E%0A+%09%3Cli%3E%0A%3Ch3%3EOperational+Risk%3C%2Fh3%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0AOperational+risk+is+the+chance+that+a+trader+is+unable+to+trade%2C+deposit%2C+or+even+withdraw+money+in+their+crypto+wallets.%0A%3Ch2%3EMain+Risk+Management+Strategies%3C%2Fh2%3E%0AThe+rule+of+thumb+in+crypto+trading+is%3A+%E2%80%9CDo+not+risk+more+than+you+can+afford+to+lose.%E2%80%9D+Given+the+gravity+of+risk+in+crypto+trading%2C+we+generally+advise+traders+to+use+not+more+than+10%25+of+their+budget+or+monthly+revenue.+Also%2C+trading+with+borrowed+money+is+not+advisable+as+it+puts+them+in+a+credit+risk+position.%0A%0ARisk+management+strategies+can+be+broadly+categorized+into+three%3A+risk%2Freward+ratio%2C+position-sizing%2C+as+well+as+stop+loss+%26amp%3B+take+profits.%0A%3Ch3%3E1.+Position+Sizing%3C%2Fh3%3E%0APosition+sizing+dictates+how+many+coins+or+tokens+of+cryptocurrency+a+trader+is+willing+to+buy.+The+probability+of+realizing+great+profits+in+crypto+trading+tempts+traders+to+invest+30%25%2C+50%25+or+even+100%25+of+their+trading+capital.+However%2C+this+is+a+disruptive+move+that+puts+you+at+serious+financial+risks.+The+golden+rule+is%3A+never+put+all+your+eggs+in+one+basket.+Here+are+three+ways+to+achieve+position+sizing.%0A%3Ch4%3EEnter+Amount+vs+Risk+Amount%3C%2Fh4%3E%0AThis+approach+considers+two+different+amounts.+The+first+involves+money+you+are+willing+to+invest+in+every+single+deal.+We+advise+traders+to+look+at+this+amount+as+the+size+of+each+new+order+they+take%2C+regardless+of+its+type.+The+second+involves+money+at+risk%2C+i.e.+the+money+that+you+stand+to+lose+in+case+the+trading+fails.%0A%0AThis+is+how+you+define+your+enter+amount%3A%0A%0AA+%3D+%28%28Stack+size+%2A+Risk+per+Trade%29+%2F+%28Entry+Price+%E2%80%93+Stop+Loss%29%29+%2A+Entry+Price%0A%0ALet%E2%80%99s+say+we+wish+to+purchase+BTC+with+USDT+with+a+target+of+%2413%2C000.+Our+parameters+would+be%3A%0A%3Cul%3E%0A+%09%3Cli%3EStack+Size%3A+%245%2C000%3C%2Fli%3E%0A+%09%3Cli%3ERisk+per+Trade%3A+2%25%3C%2Fli%3E%0A+%09%3Cli%3EEntry+Price%3A+%2411%2C500%3C%2Fli%3E%0A+%09%3Cli%3EStop+Loss%3A+%2410%2C500%3C%2Fli%3E%0A%3C%2Ful%3E%0AOur+enter+amount+would+be%3A%0A%0AA%3D+%28%285%2C000+%2A+0.02%29+%2F+%2811%2C500+%E2%80%93+10%2C500%29%29+%2A+11%2C500+%3D+1%2C150%0A%0AThe+ideal+amount+to+invest+in+this+deal+is+%241%2C150+or+23%2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This+refers+to+the+total+reduction+of+your+initial+funds+after+a+series+of+losses.+For+instance%2C+if+you+lost+%241%2C000+from+%245%2C000%2C+your+measure+drawdown+is+10%25.+The+higher+the+amount%2C+the+more+you+would+need+to+inject+into+a+trade+for+it+to+recover.+As+Dr.+Elder+advised%2C+stick+to+a+6%25+risk+limit.","timeout":15}