The Most Overlooked Skill in Crypto Trading: Risk Management
Many traders obsess over finding the “perfect” entry point, but overlook the equally important art of risk management. In crypto, where volatility can wipe out gains in minutes, knowing how to protect your capital is critical.
Here are 3 core principles:
Position Sizing: Never risk more than 1–3% of your capital on a single trade. This way, even a string of losses won’t wipe you out.
Stop-Loss Orders: Always have a stop-loss in place. Emotional exits often lead to bigger losses.
Diversification: Spread your capital across different coins and strategies. Don’t put all your funds into one asset, no matter how promising it looks.
Remember: trading is a marathon, not a sprint. The traders who last the longest aren’t the ones with the biggest wins — they’re the ones who avoid devastating losses.
What’s your go-to rule for managing risk?