Crypto markets are exciting, but they’re also extremely volatile. One of the most important skills you can develop is risk management, which protects your capital and allows you to survive tough periods.

Start with position sizing. Never risk more than a small percentage of your total portfolio on a single trade. Many professional traders use 1–3% per trade. This way, even if a trade goes against you, your account won’t be wiped out.

Next, always use stop-loss orders. Decide in advance the maximum loss you’re willing to accept and stick to it. This prevents emotional decisions when the market swings violently.

Diversification is also key. Don’t put all your money into one coin or token. Spread risk across several assets with strong fundamentals.

Finally, control your leverage. While high leverage can amplify profits, it also magnifies losses. Only use leverage if you fully understand the risks and can handle potential liquidations.

Remember, trading without risk management is like driving a car without brakes. Protect your capital first, then look for opportunities. Discipline and planning will make you a better trader in the long run.