đš 5 STRATEGIES TO MASTER YOUR RISKS IN CRYPTO
Because 90% of traders fail without risk management
đ 1. 1% RULE
Never risk >1% of your capital per trade
Ex: 10,000$ capital â max 100$ potential loss per position
â Crypto Advantage: Limits the impact of extreme volatility
â 2. STOP-LOSS & TAKE-PROFIT
Automate your loss thresholds (stop-loss) and profit thresholds (take-profit)
3 benefits:
â Avoids emotional decisions
â Protects overnight/weekend
â Locks in gains before reversals
đ 3. DIVERSIFICATION & HEDGING
Don't bet everything on 1 token: Spread across different cryptos (BTC, ETH, altcoins)
Advanced hedging:
â Use futures to protect your portfolio
â Ex: Sell futures contract on BTC to hedge against a drop
đȘ 4. PREDEFINED EXIT STRATEGY
Plan your exit scenarios coldly
Risk avoided: Excessive "diamond hands" that turn +100% into -50%
đ 5. DYOR (DO YOUR OWN RESEARCH)
Always check:
â Whitepaper
â Team & partnerships
â Real community (not shills)
â ïž Beware of viral "trading tips" that are often misleading
"In crypto, risk management is not optional â itâs your trader's life insurance."
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