It’s Invest Diva's Kiana Danial https://www.investdiva.com/ with News BTC and here is your cryptocurrency update. As I’ve covered in previous videos, cryptocurrency risk is one thing that can’t be ignored when investing in this exciting market. That’s why, in today’s educational piece, I’d like to briefly cover some risk-management methods you can quickly use for your investment portfolio. If you’ve ever followed my investment education and strategies on InvestDiva.com, you’d know I talk a lot about methods to calculate your unique risk tolerance. That is because the only way you can achieve your investment goals, is to invest at a risk level consistent with your risk tolerance assessment. Here are three simple guidelines for your cryptocurrency risk-management. 1: Build your emergency fund first. You can calculate your emergency fund by dividing the value of your total immediately accessible cash, by your necessary monthly expenses. That will give you the number of months you can survive with no additional cash flow. The result must be greater than 6 months. But the more the merrier. For more on risk tolerance calculation visit investdiva.com, and read my book, [IMG] Cryptocurrency Investing for Dummies. Building your emergency fund is actually the one thing you must have before creating any investment portfolio, let alone adding cryptocurrencies to it. Once you have a high enough risk tolerance, you can move on to the second risk management guideline, which is 2: Be Patient. The risks involved with cryptocurrencies are slightly different than those of other, more established markets such as equities and precious metals. However, when it comes to managing your portfolio risk, similar methods can do the work. The most common reason many traders lose money online is the fantasy of getting rich quick. However, I can say with confidence (verifiably) that the vast majority of my long-term students made money and in many cases a lot of money but the key has been patience. The third risk management guideline is to 3: Diversify outside and inside your cryptocurrency portfolio. The “don’t put all your eggs in one basket” rule. Again, this is a same-old investing advice that remains true to our revolutionary cryptocurrency market. But other than diversifying your portfolio by adding different assets such as stocks, bonds, or ETFs, diversification within your cryptocurrency portfolio is also important. In Chapters 3 and 25 of my book, I provide some ideas for this. Thanks for watching, invest responsibly, and I’ll see you with more updates tomorrow.