The cryptocurrency market is characterized by its high volatility, and periods of abrupt declines can challenge even the most experienced investors. Having a clear risk management plan can make the difference between preserving your capital or facing significant losses.
It is essential to adopt structured approaches, such as balanced asset distribution (asset allocation), fund rotation, and the application of hedging strategies with derivatives. These tactics allow you to mitigate risk and ensure that your investments remain aligned with long-term goals, even amid market turbulence.