💡 Beginner’s Guide to Risk Management in Crypto Trading

1️⃣ Only Invest What You Can Afford to Lose

Crypto markets are unpredictable—never risk money that would impact your daily life if lost.

2️⃣ Plan Your Entry & Exit Points

Know in advance where you’ll buy and where you’ll sell. This helps avoid panic moves during market volatility.

3️⃣ Use Stop-Loss Protection

Set stop-loss orders to automatically sell if the price falls too much—protecting your capital from heavy losses.

4️⃣ Diversify Your Holdings

Don’t bet it all on one coin. Spread investments across different assets to balance risk.

5️⃣ Maintain a Solid Risk-to-Reward Ratio

Aim for trades where potential gains are at least 2–3x bigger than possible losses—this builds long-term success.

6️⃣ Avoid Excessive Leverage

Leverage can multiply profits—but also losses. Start with spot trading before stepping into margin trading.

7️⃣ Stay Updated

Follow market news, token developments, and regulations—information is your defense against surprise risks.

8️⃣ Stick to Your Trading Plan

Set clear goals and limits before trading. Follow your strategy, not emotions.

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