Crypto's too volatile market that's the main risk. It's even more than the risk in the traditional market.

Here is an overview of how to find and UNDERSTAND your risk while investing in crypto. If you want to see how it works click this link:

https://www.amsinger.org/how-it-works

I have previous posts on here explaining an optimal entry point based on fundamentals on Feb 7. This is an explanation of May 2 to May 27.

Creation Cost - The variable cost it takes to create a bitcoin

On May 2 BTC risk hit its lowest since February. BTC was 15.1% above its price floor This is a rare and likely profitable situation. The price floor represents the price at which whales start buying due to the natural cash flow of cryptocurrency. It represents the point of strongest buying capability in the market.

On May 27, after the 59% price spike, the risk level increased to 55.5%. The price had virtually no support and due to the high price every miner and holder with any awareness of risk levels was selling and not holding.

I created fundamental analysis in order to provide my clients the information that they need to measure risk and understand the crypto market. With the fundamental price floor you know automatically if the price is low or high. $3000/BTC was INCREDIBLY high 4 years ago, $3000/BTC now is a mortgage-your-house steal. With price floor and cash flow analysis my clients know when the market is high and when it is low.

I truly hope that you find this information useful to you. I made this because of the pain I felt in Nov 2018. I needed to know why it didn't go to zero, and I found the price floor.

Aaron

Helpful Links:

https://www.amsinger.org/sample-analysis - 25-Day price floors and cash flow

https://www.amsinger.org/open-research - Research and data covering why Feb 7 was the optimal time to buy

Cryptocurrency, for some people may still be unfamiliar when they hear it. Cryptocurrency or crypto currency is a digital currency or has no form and is predicted to replace fiat currency because it is considered more profitable.Because crypto prices are fluctuating depending on market demand, and because the number of crypto is limited so that it will not experience inflation. Crypto trading is one way to invest by making transactions to buy, sell, and trade crypto assets that produce a difference as a profit. People want their investment to always go up, this is natural, but there is no guarantee that crypto will rise. Crypto is unpredictable, and this is precisely what causes people to be interested.
My advice, buy the crypto amount that you like in an amount that is not too large and don't over think it. If possible, do the transaction in crypto, asking that you be paid with crypto. This is another way to get crypto without retail prices.
Beginner investors should start investing in small amounts.  If you want to understand the risk of crypto, then my advice is you have to take part, so you can study and participate in an initial coin offering (ICO).

I think that the risk in the cryptocurrency market is not 50 to 50% of winning or losing, but perhaps 99% plus 1. Only you will win, or you will actually lose.  First of all, it is the volatility of cryptocurrency that increases the risk for each investor.