Maximizing Gains vs Reducing Risk - Which Is Better For Crypto Trades?

Maximizing Gains vs Reducing Risk - Which Is Better For Crypto Trades?


When it comes to cryptocurrency investing, there are two main approaches: maximizing gains and reducing risk. Both strategies have pros and cons that should be carefully considered before deciding which is best for you. Let's explore this concept further.

Maximizing Gains

The goal of this approach is to make as much money as possible in the shortest amount of time by taking calculated risks. This could involve investing in high-risk, high-reward cryptocurrencies or trading frequently on volatile markets. There are no guarantees that this strategy will pay off but those who are willing to take the risk have the potential for a big payoff.


Of course, this can be emotionally draining and involves considerable risk. After all, the markets can be unpredictable and sudden shifts in the market could lead to losses. Maximizing gains irresponsibly is typically not the best strategy for those that are highly risk-averse. If financially, you aren't in a position where you can sustain losses, this strategy should be avoided.

Reducing Risk

This is important for any crypto investor. By taking into account different factors, such as market conditions, liquidity levels, and the ongoing news related to cryptocurrencies, investors can better understand the potential risks and rewards of their trades. Losing money can be avoided by sticking to strategies such as diversifying investments, setting stop-loss limits, and conducting regular research.


Taking on too much risk has been known for causing losses, so reducing risk should always be the primary focus of any crypto investor. This can help ensure that the gains they make are consistent and lasting. However, some degree of risk is unavoidable, and understanding the markets can help reduce this risk. The more insights you have into the crypto markets the better prepared you will be to make informed decisions.

Asymmetric Investment

By combining both approaches, investors can seek to maximize their gains while reducing risk. This is known as asymmetric investment, where the potential reward outweighs the risk taken. Asymmetric investing requires more research and experience to identify opportunities with high rewards but low risks.

How To Track The Markets For Asymmetric Opportunities

Being able to monitor crypto in real time will help you identify asymmetric opportunities that are worth pursuing. Tools like Moonrig.io will send you instant crypto notifications and provide analytics to help you make informed decisions. With this free crypto portfolio tracker, it will become immensely easier to see which positions are too risky and how to allocate more appropriately.

Final Thoughts

Ultimately, the best approach for a crypto investor will depend on their individual objectives and risk appetite. Those who are more conservative may prefer to reduce risk, while those looking for bigger returns could opt for maximizing gains. However, the goldilocks approach, asymmetric investment, is a great way to combine the two strategies. By leveraging resources like Moonrig.io, crypto investors can easily track the markets and take advantage of these opportunities.