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Risk management is essential in finance - every investment involves some degree of risk. Having a thorough understanding of the assets you invest in is a critical component of risk management. simplifies research in the crypto market to help you evaluate the risks associated with the top crypto assets.
1. Investing
Investing is slow and steady. Investing is the process of putting money at risk to get a return. It is very much focused on the long term. Good investors tend to do a lot of research before committing capital and are willing to wait a long time to see an investment payoff. Investors may invest in things that are currently out of favor because they believe that others will recognize the value with time.
CryptoEQ’s fundamental analysis provides everything needed to make up-to-date and informed decisions regarding the quality of a digital asset in this ever-evolving and revolutionary industry. The analysis encompasses a proprietary rating system coupled together with the experience and expertise of CryptoEQ’s Core Fundamentals Team for a comprehensive, nuanced, and tactful market outlook in an industry riddled with unreliable data.
The 5 Core Ratings
- The highest rated assets with notable advantages across the 10 Core Categories and has earned the analysts’ highest level of confidence. Considered the lowest risk.
- The second highest rated assets with advantages across many but not all of the 10 Core Categories and gives the analysts a high level of confidence. Considered moderate risk.
- The third highest rated assets with advantages that outweigh the disadvantages across the 10 Core Categories and gives the analysts a sufficient level of confidence. Considered high risk.
- Assets that have scored below average on the 10 Core Categories but do not display any obvious deficiencies .
Deficient - Assets where at least one major issue has been identified in the 10 Core Categories that outweighs any benefits.
Intuitively, a higher CORE rating typically produces a higher ROI, illustrating that fundamentals DO matter, even in crypto.
2. Trading
Trading involves more frequent transactions, such as the buying and selling of assets. Trading involves short-term strategies to maximize
returns daily, monthly, or quarterly. There are a few different trading strategies:
- Position Trader: Hold for months to years.
- Swing Trader: Hold for days to weeks.
- Day Trader: Trade throughout the day and do not hold positions overnight.
- Scalp Trader: Only hold for seconds to minutes with no overnight positions.
Traders often choose their trading style based on account size, time dedicated to trading, trading experience, personality, and risk tolerance.
CryptoEQ "oversold" signals in green triangles (i.e. entry points). "Overbought" signals in red, catching pullbacks in pice during a bull market.
3. Gambling
Gambling is nothing more than luck. A gambler puts up money in the hopes of a payoff if a random event occurs. The odds are always against the gambler and in favor of the house. Gamblers hope that, if they get lucky, their return outweigh their more likely losses.
Some gamblers believe they can beat the odds, but gamblers lose their initial capital more often than not. They get excited about the potential for a big win and get caught up in the glamour of the casino, and soon the odds go to work and drain away their stakes. We see this in crypto, with new investors purchasing memecoins like Dogecoin or Shiba Inu without adequately researching the assets.
Proper research can reduce the amount of risk in your portfolio. Use to avoid taking significant losses in your crypto portfolio.
Risk management is essential in finance - every investment involves some degree of risk. Having a thorough understanding of the assets you invest in is a critical component of risk management. CryptoEQ simplifies research in the crypto market to help you evaluate the risks associated with the top crypto assets.
