Crypto Analyst Highlights Risk Management Challenges in Investment Strategies

According to PANews, crypto analyst Miles Deutscher recently shared insights on the challenges faced by investors in the cryptocurrency sector. Deutscher emphasized that a mindset of 'avoidance' is a significant threat to the industry, revealing that he lost millions during this cycle due to neglecting profit-taking and failing to identify risk signals promptly. Deutscher noted that during favorable market conditions, investors might become complacent due to excitement, while during downturns, they might ignore portfolio management due to avoidance tendencies, missing out on buying opportunities or necessary risk mitigation. He shared a personal example where he anticipated a weakening trend in the U.S. dollar but failed to hedge adequately, resulting in substantial losses in forex trading. Deutscher stressed that actions in investing are more crucial than opinions and advised investors to remain objective, continuously assessing risks and opportunities. Additionally, he mentioned that avoiding the review of a losing portfolio could be a manifestation of avoidance psychology, which exacerbates issues as portfolios require ongoing management. Deutscher believes that unless investors are entirely holding BTC or stablecoins, they should actively monitor market dynamics.