How to reduce risks in crypto investment

Investing in crypto always carries risk. Crypto broker Anycoin Direct explains how to minimise it.

Investing in crypto always remains exciting, because there are always risks involved. Where one wins, another loses. Yet there are ways to ensure that you, as a beginner or expert, can reduce the risks of an investment. Together with cryptobroker Anycoin Direct MASTERS will help you with your crypto exit strategy. Text: Patrick Stoffer

Step-by-Step Method

The Step-by-Step Method can prevent you from becoming too greedy, or from selling too late or too early. In short, this method means that you never sell everything at once. You will instead be trading 5-10% of your stock holdings. This is based on price targets or a technical analysis. Below is an example of how you could handle your Bitcoin investment. You can always use a stop/loss. This is a way to automatically trigger sales or purchase orders at certain price points.

POINT OF SALE PERCENTAGE TO SELL % €25,700 10 % €35,700 10 % €49,700 20 % €79,700 20 % €104,700 20 % €155,300 20 %

Return on investment

The next step is quite simple. You take the invested money out of the position. A simple example could be that you invested €50.000 in 2017. Once this position has (for example) doubled, you can withdraw the original investment of €50.000 to avoid a loss in the worst case. This way it is impossible to ever go below your original investment amount.

Invest again

You just made a huge profit on your investment. But what now? Do you leave this money or do you continue with it? This is a decision everyone has to make for themselves. If you decide to move forward for a significantly higher profit, it may be wise to invest your funds on multiple projects, so that your investment can never fail due to one mistake.