Risk Management & Portfolio Diversification
Crypto Trading & Investment Strategies
Protecting Your Investments
Even the best traders never risk everything on one asset. Here’s how to manage risk effectively:
🔹 Diversification – Spread investments across different assets.
🔹 Position Sizing – Never invest more than 5% of your portfolio in a single trade.
🔹 Risk-Reward Ratio – Ensure potential profits outweigh risks.
🔹 Stop-Loss & Take-Profit Orders – Automate exits to avoid emotional trading.
✅ Example: Instead of investing 100% in Bitcoin, diversify like this:
50% BTC (Stable asset)
30% ETH (Growth potential)
10% Altcoins (High risk, high reward)
10% Stablecoins (USDT, USDC for liquidity)
⚠️ Golden Rule: Never invest more than you can afford to lose!