What Should Crypto Traders Do in a Volatile Market?

1. Make a Trading Plan

Decide your entry, exit, and stop-loss levels before you trade.

Stick to your plan—don’t let emotions control your actions.

2. Control Your Risk

Never risk more than 1–3% of your total capital on one trade.

This helps you survive even if the trade goes wrong.

3. Avoid High Leverage

Leverage can multiply your losses in a volatile market.

Use it carefully—or avoid it completely if you’re a beginner.

4. Use Stop-Loss Orders

Don’t just think about stopping—place real stop-losses on your trades.

This helps protect you if prices drop fast.

5. Diversify Your Portfolio

Don’t invest everything in one coin.

Spread your money across different assets to reduce risk.

6. Keep Some Money in Stablecoins or Cash

Always have some funds outside the market in case of emergency.

Don’t invest money you may need soon.

7. Consider Hedging

You can use stablecoins, futures, or options to protect your portfolio.

Hedging reduces your risk in case the market crashes.

8. Secure Your Assets

Use a hardware wallet for long-term storage.

Use two-factor authentication (2FA) on all exchange accounts.

9. Follow Trusted News Sources Only

Don’t follow hype or rumors on social media.

Stay updated with real news, market data, and official announcements.

10. Keep a Trading Journal

Write down why you made each trade and what the result was.

This helps you learn from your mistakes and improve.

11. Understand Tax Rules

Keep records of your trades for tax purposes.

Check the crypto tax rules in your country.

12. Take Care of Your Mental Health

Don’t trade when angry, tired, or stressed.

Take breaks if the market feels overwhelming.

13. Know When to Stay Out

Sometimes the best decision is not to trade.

Wait for a clear opportunity instead of forcing trades.

📌 In crypto, your number one goal is not just to make profits—but to protect your capital so you can trade again tomorrow

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