Imagine waking up to more than a 50 per cent boom in your assets and losing the same within a few hours. This is what makes crypto, a very thrilling subject that requires tact and proper advice on how to move within the space.
While volatility is part of the game, proper crypto risk management can help you buy crypto and sell crypto smartly without losing sleep. Whether you’re a beginner or a seasoned trader, these essential risk management tips will help keep your portfolio safe.
1. Never put in More Than You Can Afford to Lose
This is the golden rule of crypto trading. Unlike traditional stocks, crypto can swing wildly in a matter of hours. Before investing, ask yourself:
- Can I afford to lose this money without affecting my daily life?
- Will losing this amount put me in financial trouble?
If the answer to the second question is yes, reconsider your investment amount. Crypto should be part of a diversified investment plan, not your entire financial future.
2. Diversify Your Portfolio
Never put all your money into one coin, no matter how promising it looks. Spread your investments across:
- Bitcoin & Ethereum(more trusted, long-term assets)
- Altcoins(higher risk, but potential for growth)
- Stablecoins(to protect against volatility)
Think of it like building a sports team; you wouldn’t play with just one star player. A mix of assets helps balance risk and reward…
3. Secure Your Funds with Cold Storage
Crypto hacks are real. If you’re holding large amounts of crypto, don’t leave them on an exchange. This is advised because exchanges do not offer 100 per cent control over the safety of your crypto. Instead:
- Use hardware wallets (cold storage) to keep your crypto offline and safe from hackers.
- Enable 2FA (Two-Factor Authentication) on all trading accounts.
- Avoid sharing your private keys or recovery phrases.
The best security strategy is treating your crypto like cash in a vault—safe, private, and inaccessible to anyone but you.
Looking for a secure and easy way to trade? Mybitstore has got you covered! Start trading wisely today!
Disclaimer: Mybitstore is not an investment platform and does not offer financial or trading advice on cryptocurrency
