đąFour key risk management planning methods
đ”Acceptance: Deciding to take on the risk of investing in an asset but not spending money to avoid it as the potential loss isn't significant.
đ”Transference: Transferring the risk of an investment to a third party at a cost.
đ”Avoidance: Not investing in an asset with potential risk.
đ”Reduction: Reducing the financial consequences of a risky investment by diversifying across your portfolio. This could be within the same asset class or even across industries and assets.
Next topic đą Why is a risk management strategy important in crypto?
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