The Importance of Risk Management in Crypto Investments

The first days of June have been interesting to say the least.

During the last weeks I have had the privilege to meet and discuss the Crypto market conditions in New York, Miami and Sydney Australia with some of the best traders and investors in the world.

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Contrary to what pop Culture indicates, they do not have a YouTube channel, drive the same rental Lambo from a Shop in Bird Rd or talk more like a Digital Marketing person rather than a Finance professional.

So If you are hoping to see motivational quotes or “Be your own Boss” stuff, you can stop reading now.

In these lines, I would like to share with you some of the pearls of wisdom that I was able to gather from them.

Ever heard the phrase “don’t put all the eggs in the same basket”? Well this colloquial term is what we refer to in a more technical way to Diversification.

In plain English diversification is no more than building a portfolio of several investments (tokens in our case) from a wide range of sub niches and jurisdictions.

In that way, if one or two of those investments go under, well you will have a chance of performing a balancing act with the rest of the tokens in the portfolio.

Trust me it does puzzle me why this is so hard to understand for so many. Greed maybe? Believing that they do possess the info of One specific investment that will perform a 100x in a week?

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More than Risk Management 101, this is “Survival for D…mies”

I do appreciate that with a limited pocket, it is very hard if not impossible to build a diversified portfolio, however in the current environment, there are plenty of investment funds and protocols suitable for all kinds of budgets.

Do your own research and find out what is the best option available for you and Diversify!

I am not here to scare you, quite the opposite, I want you to grow and be successful in this wonderful industry. (Crypto). That’s why I am sharing a few topics you need to be careful with in order to “Survive, to Trade and Invest another day!”.