#ETHBreaksATH Avoiding risks in the cryptocurrency market requires a mix of conscious financial management and disciplined trading strategies, as the market is very volatile and rapidly changing. Here are the key points:
1. Capital Management
Only invest what you can afford to lose (do not use money you need for living).
Diversify your investments across several currencies instead of putting them into a single asset.
Use small ratios for entry (for example, 2-5% of capital in a single trade).
2. Protection from Volatility
Set stop-loss orders to determine exit points at a specified loss.
Do not chase prices after a sharp drop or rise (FOMO / Panic Selling).
Consider long-term investment in strong currencies instead of day trading if you are not an expert.
3. Beware of Scams
Do not enter into unknown projects or currencies with promises of guaranteed profits.
Use reliable and well-known trading platforms.
Store your coins in cold wallets if your investments are large.
4. Knowledge Development
Keep up with news and analyses, as regulatory decisions or hacks can have a significant impact.
Learn the basics of technical analysis (levels, trends, indicators).
Do not rely solely on others' recommendations without understanding.
5. Psychological Aspect
Avoid greed and fear, as they are the biggest reasons for losses.
Have a clear trading plan (when to enter, when to exit, risk ratio).
Stick to the plan and do not change it based on emotion or rumor.