5 Risk Management Strategies Every Crypto Investor Should Know 🧵

Managing risk > chasing profits. Here’s how to stay in the game:

1️⃣ Acceptance

Not every risk needs hedging—if the downside is small, accept it and move on.

2️⃣ Transfer

Use tools like options or insurance to shift risk (at a cost).

3️⃣ Avoidance

If it feels too risky, skip it. Capital preservation is key.

4️⃣ Reduction

Diversify—don’t let one trade decide your portfolio.

5️⃣ 1% Rule

Risk only 1% per trade + always use stop-loss.

💡 Extras:

• Hardware wallets for long-term holds

• App-based 2FA > SMS

• Burner wallets for DeFi

• Always DYOR

Good risk management = longevity in crypto.