Crypto Asset Risk Management software
Introduction: Every enterprise in the market has an added risk in addition to the profit it makes. Every enterprise, whether small or large, comes with its own risk factors. Hence to evaluate and combat this risk, a sustained approach towards the risk factor is important.
What is Enterprise Risk Management?
Enterprise Risk Management or ERM is the process of planning, organizing, directing
and controlling the working of an organization in order to ensure a minimal risk factor
on its working capital and profits. ERM covers strategic risks, financial risks, operational
risks and any risks associated with accidental losses like fire, robbery etc.
This is the basic picture of what risk management is. Everything which gives you returns
comes associated with a certain degree of risk. A rapidly growing market which has taken
people by storm is the Crypto market. As much as it’s known for giving high returns to its
investors, it also comes with a certain risk factor. Now let’s understand the risk factor in the
crypto world and how Crypto Asset Risk Management Software helps in reducing this risk.
Risk Management in the Crypto World
As mentioned earlier, Crypto has grown significantly in the last one year. As people actively
invest and trade in crypto, they ignore the fact that it’s not just about the growing profits, but
also about the associated risks. In order to take the best advantage of your profit, you have
to have an efficient Crypto Asset Risk Management Software which will help you minimize
your risks and enjoy your gains to the fullest.
Risk management in the crypto world simply means to foresee and get control of any
potential future losses from an unsuccessful transaction.
The Importance of Risk Management
Let’s take a simple example to understand this,
You decide to invest in any crypto, say, XYZ from your entire deposit. And due to some
unforeseeable circumstances it’s value drops by say 50%. This way you lose half of your
deposit. Now come the main question, if you don’t have a strategy to tackle your risks, you
will be losing your money. By having a strategy or a trusted Crypto Asset Risk Management
Software, this loss could have been predicted or perhaps dealt with.
How to minimise losses for a safe trade?
- Never invest wholly in one crypto:
Taking the above example, if the investment had been in say 10 different places and XYZ held only 10 percent of your deposit then the loss would have been significantly less. Therefore it’s important to look into risk diversification and analysis of the market so as to not incur such huge losses. -
Analyze the size of your trade:
Seldom, the traders are attracted by the idea of invest huge percentages of their deposits in one deal, which may lead to serious losses if it fails. Hence, new traders should remember the 6% rule and 2% rule.The latter says that you never invest or open more than 2 percent of your entire deposit in one deal. The former says that if you’re someone who’s losing money time and again then you should stop trading if you’ve lost more than 6 percent of your deposit.
- Analyzing the profitability rate:
One aspect of trading is you cannot completely do away with losses. It’s important to
understand that they are a part and parcel of the game. The important thing is to understand the profitability ratio which ideally should be 3:1 or 2:1 in order to cover your losses.
Our solutions.
We PlatinX www.platinx.io here to assist you and provide you the best of crypto asset
risk management services. Our team consists of well qualified and experienced experts
who have decades of experience in studying and analyzing the crypto assets and the
market. PlatinX helps you prevent losses or get hold of any unsuccessful transaction through
our Crypto Asset Risk Management services.
Visit our website, www.platinx.io/crypto-asset-risk-management to read more about the
services we are to offer, as we promise to provide you the best experience in the crypto
market while ensuring the safety of your funds.
