Bitcoin Forum

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

When bitcoin goes up, alts mostly go up higher.
When bitcoin goes down, alts almost always dumps harder.

The 3-5% capital allocation is recommended simply just so that you can have a chance to make back your money if you ever lose a few trades. In contrast to going all in on one trader, where if you lose that  trade you're pretty much done.

As for recommendations, look around the forum mate. There are so much trading advice threads posted that I pretty much see redundant threads every few days.

There is no exact percentage that will be the best for everyone because that will depend on how much money people use to trade or invest and how they can manage the risk. What you read on Twitter could be the basic lesson to manage the risk, but you will know after you practice with your own money. Using 3%-5% will be recommended, but if you have high trade skills and you can deal with the risk, you can use more capital to trade because you know that you can analyze better the market situations. We need to adjust our money to be used in trading and not greedy to chase profit.

This is commonly happened but some alts sometime have exception with this. I've noticed that when bitcoin is down there are some altcoin retain their position and these projects are highly strong in support. Example of this is egld or elrond project. When btc dumped they still have their price at green mode.

Anyway that's only for few ones but you are right majority are being dragged down.

Totally. And that's why I chosen my words carefully, using the phrases "mostly" and "almost always" because I totally get that what I said doesn't 100% apply every single time. 😁

Sir if i have 500$ in trading account. HOW much should i took risk in every single trade ?😊

Sir how many trades should i take at a time...😊

Like what you already said in your main post, 3-5% allocation per trade should be a good starting point especially when you're a beginner. Heck, even if you're already a trading expert, 3-5% is still mostly the better choice because going greedy and going as high as 10%(or higher) per trade can be a recipe for disaster.


There is no standard number of trades you should take at a time. What's important is that you can actually monitor your trades, and the number will completely depend from person to person. Probably start with a maximum of 3?

Thanks Sir😊♥️

3%-5% of loss, then you should trigger stop loss and let that loss get out before your loss go more than that percentage.

My suggestion is to invest to bitcoin and if you're liking to invest in alts, invest most in bitcoin and just around 20%-30% of your money in alts.

Thank you for this suggestion sir i will try...😊♥️

I'd say that as a trader you don't want to take more than 1-2% risk per trade if you are trading on the short term.

As far as I have noticed most of the time altcoins go down against BTC when BTC is pumping against USD. That is due to traders wanting to profit from the BTC move and of course FOMO.
When BTC dumps usually people lose trust in altcoins as well. At least lately altcoins seem to rise when Bitcoin is consolidating.

You're welcome.

Try it and just go with the experience and if you ever are losing, treat that as a lesson and don't give up. You're just starting out and there's more to go.

Good luck with your journey.

Just because bitcoin pumps doesn't mean that alts will dump, that is not the case most of the time when you look at the fiat prices of the coins, you have to realize that when you are trading. Just because bitcoin went up and some altcoin went down in btc price doesn't mean that it will go down in fiat, it could go up in fiat and that is what we are looking for right now.

I personally think that we are in a situation where we are going to end up with altcoins and bitcoin both will go up soon, so you could invest into alts as well. That "alt season" people are talking about is already here, we literally had all time high price on ethereum for example, and people are still saying bitcoin pumps and alts dump, how the hell do you manage to think btc broke 1.5x over the previous ath price and ethereum broke over ath price and they do not act together.

When it comes to risk management or how much you should spend % of your total capital into your trades then its up to someones decision and this will really vary from person to person
because we do have different capacities when it comes to financial aspect and the level of risk management.

It doesnt matter if you do make use 5% or 10% or even more as long you do saw some chances for you to take advantage then its up to you.Its your money and its your right
on whatever position you would make.

Just make sure that you are aware on the risk on putting up much bigger but if you are a type of trader that doesnt really like to gain some peanuts then
you can always opt on making your trading position bigger.

The huge volatility increases the risk of REKT and for protecting the trades we have to use the best suitable money management depending on the trading strategy. The perfect money management is all about cutting losses and let winning trades run while adjusting the trade lot size. The minimum volatility is the best environment for learning the trading but the medium volatility can cause big fluctuations if the money management is ignored by the trader.

As a trader one of the first thing you have to learn is risk management how you manage your lost in the manner that you won't lose all you funds. Firstly when trading in Cryptocurrency or investing in Cryptocurrency always make sure you invest or trade with 20%-30% of your capital. Secondly somepeople might see stop lose as a useless idea but I will advise you to always use stop lose because is better for you to lose 5%-10% of your funds than to lose 60%-70% of your funds so always use stop lose. Thirdly always know when to exit the market always know when you will always take your profit and leave the market you don't have to be greedy.

Don't rely on informations you get from social media, most especially crypto-twitter as most users you see on that platforms are pretenders only wishing they have they level of success in trading they post about. We're currently in the altcoins season so the scenario that involves alt market dumping isn't as it was few months back when the pumping and dumping of bitcoin resulted to altcoins bleeding out most especially DeFi related projects.

Now bitcoins pumps influence the reaction of the alts as they gain value. Your risk management do have a lot to do with your trading capital. If you have very low capital then you don't expect to use just 3% and come out very profitable. In the trading game, the more capital you invest produce a profitable output so maybe increasing your own to 10% might just be ok provided you would be comfortable risking that amount.

I would say risking as much as 10% could be the max, because 3% is very little, 5% is not bad, and 10% is the max, anything between 5% and 10% would be fine. I haven't really had any trouble with the 10% I do, even if I end up losing some I end up 1-2% of my total and that is something I can recover most of the time.

I am not a big time trader so do not take this advice like it is the rule book, it is not and it is just me and I usually invest and not trade, but sometimes I get bored and I want to trade a bit and I have fun with it, and at that point I do just 10% and when I earn I earn like 2-5% at most and when I lose I lose 2-3% at most which are totally fine levels for me, I could handle losing that much without really hurting my investment. If you end up dealing with 3% that would be so tiny that any profit you make would not be worth it in the end.

In real fiat currency trading there is a high risk in it, while in cryptocurrency is not due to most of the time altcoins goes up only when
Bitcoin price value is decreasing it in the market. This happened here several years now and even up to now it is still happening in the market.
But whether it is pumping or dumping they are both good opportunity to me in my own perceptions.

Those twitter accounts get advertisements and that is the reason why they are insisting on sharing things constantly even if it will result with bad results for people and what not.

I have seen people who started sharing when it was just few followers and I have followed them all the way to 5K+ followers as well and they started to share things with links, that was affiliate marketing and that's fine, but they started to make a decent amount of money with it even if not a lot, after they reached to 20k+ levels they started to share some ads about crypto related stuff, even exchanges that are unknown gave ads to share it, mostly in disguise as discounts and promotions and not ads, and lastly when it reached to 100k+ it became such a horrible position that they charged as much as 100 bnb for one ad that was about anything at all, I have literally seen a bicycle advertisement. So, it is very very profitable for them to do it.

Have you checked the date of whatever you read?
Those are old school rules.
Bitcoin up, alts go down, and vice versa.
But that doesn't happen anymore. It is really difficult to predict the market.
Mostly, what will happen is Bitcoin up alts go up. It's like they are being attracted by each other.
I don't really know the reason behind it but it happens.

This is really a very important concept from a trader's standpoint. People generally tend to ignore it. Risk Management is the most important concept and has become even more popular after the recent GameStop thing. Now the traditional notion of Risk Management is to Risk 3-5% of your capital on each trade and this actually is a pretty good strategy. This is usually done using Stop losses and take profits using Pivot Points. But there is a problem here. The problem is that crypto markets are highly volatile. You can pretty easily see a huge dump of 10% and see the very next 5 Minute candle of recovery from that dump. Now this makes Risk management using this traditional approach a very hard thing. But still best you can do to overcome this is to widen the gap of Targets and Stop loss and also try to use the Risk-Reward Ratio Concept. Keep a Risk Reward Ratio of at least 1 and recommended 2.

In my opinion, risk management ultimately depends on your trading capital and how much you're willing to lose in case of your trade goes sideways. That's what I see a lot of people don't understand. You have to assess this yourself and make adjustments as you go on. There is no "one size fit all" risk management techniques - 3%, %5, 7%, 10%, 20%?  - These are all textbook examples that might had work in the past in traditional markets like stocks. Over here in crypto, the markets are always evolving. You just have to adjust and evolve too. Like I said, you're in the best position to determine what your risk management level should be. Not some random people on Twitter or on medium or other blog posts.

Risk management by dividing capital will be very effective so that when there is a loss the capital will remain safe.
For example, by dividing the capital in several parts to make entries on several coins with the same percentage of capital on each coin.
Opening a different position on each different coin will make it easier if you want to get out of a position that is likely to experience a loss, but when there are other positions that have a good percentage you will get a bigger profit.

You read that from twitter/blog/Another BS social media channel - Learn to ignore all that. When you are into cryptocurrency trading which is one of the most psychologically demanding trading processes, you have to avoid all types of manipulation.

I could tell you a random percentage, does not mean that it will be correct to manage your risk. In general in gambling 10% of your capital is max to be used in each bet. You could apply the same to trading. Of course lower than that is also a safe bet.

What I can suggest you is to try trading yourself and see how you can manage your capital and lower your risk by doing research on what you are buying. Specific numbers dont help here, rather quick and calculated decisions do.

Now as what we have observed Bitcoin market value goes up, and the alts value also follows not as same movement of bitcoin but it takes time and it follows the movement of bitcoin market value. But to be honest from time to time the responds of altcoins to the bitcoin price movement couldn't be predicted by fix conclusion that whenever the bitcoins price pump and so the altcoins too. It is still a wise decision to have a risk management in trading, though risks are inevitable but atleast you have your control over it.

It just happens in the past where Bitcoin rises, altcoins will do the same thing, and that usually what we still seeing this time. But if we are thinking about history repeats itself, guaranteed not, it remains unpredictable.

A lot of influencing factors affecting the trend and also influential personality could easily make hypes if they want that could merely make changes on the coming situation. What it helps us to have this risk management certainly be effective is to have our trust in crypto, as I know it never gives us disappointment.

You should not "ignore" all that bullshit because those are the same people who end up trading as well and that is why what they say is important. Is it still bullshit and they are just making up stuff that is obviously wrong and they just create assumptions and sell it as predictions? Of course, they are the most vital piece of .. thing in the world and they should always be seen as lower level scum who try to scam people via their prediction selling and so forth.

There are horrible people in social media and this is not just true in crypto, this is true in everything about life. However we should still care about it, not agree not accept but care about it because what they do may have some consequences and that is why we should be checking it up, it is like having this politician you hate but you still read the news of it, same logic applies here as well.

I would say the best way to do for me is buying at each price, so that way I am never too out of touch with bitcoin. Did I buy bitcoin back when it was under 1k? I did, did I buy when it was around 3k? I did, did I buy when it was 10k? I did, and now I bought at around 21k as well.

So, basically I bought bitcoin at all prices, when it goes up, when it goes down, I always end up buying bitcoin without any interruption. This is why I get to actually enjoy my safety, because I am rarely ever under the purchasing price, and whenever I am, I just buy more and see that as an opportunity and not a loss.

Many people go all in and that is the problem I believe, when you spend all your money buying bitcoin or any other crypto, you are going to lose money when it goes down, since you do not have any money at all you are not going to be able to buy more to drop your average neither.

If I am trading right now, I would up that risk a bit higher because pretty much all my capital are all those that I don't fear losing like around 7% - 10% maybe but hey it depends on how worth does the amount really hit you when you lose it as you assume it.

On your second statement, it's quite common for it to already happen because we're all inside the crypto space. There are investors considering to take opportunity of other coins in the market as BTC show its green in the chart, but then dump really really hard when BTC doesn't smile upon the greens that's why many tokens tend to be dry.

We can stop this, we're giving them too much power. we're already making ourselves gullible by following their social media handle. With that in mind they take advantage of the situation by selling us their ads. Why I'm not against them profiting from the service they offer, what I'm against is them scamming their followers just for some selfish gains. An example is them shilling/pumping a particular coins just because they must have loaded their bags previous.

99% of the so called crypto influencers or educators we have on twitter and youtube are money driven, hardly before you'll see anymore that had the motivation of enlightening/educating the public. And if there is any, it's just a matter of time before he/she monetized their handle by offering ads to their followers without considering if those ads who be harmful or not.

I think learning how to remove yourself from social media presence is important here. Some people get misled and this is how how they assume things from such people to be true.

I dont completely agree though. You could remain bluepilled and ignore them as much as you want. They will always be a voice out there trying to make a demand but you can go on your way and not give any importance.

I would not compare politicians with this, after all running the government is a different job, than running a brainwashing twitter page.

Crypto prediction and social media are something if put together can be a losing combination if followed. Rather than doing your own research you would blindly follow someone else who is running you like a puppet and draining your money.

That is sort of what I was going for as well. It is about knowing what other people are saying but not agreeing with them. So the politician thing is about similar, because a bad politician you hate will say something that may have a chance to change the country but you hate them and do not agree with them, whereas a bad social media person in crypto world that you hate and disagree could say something and change the price as well. Like for example Elon pumped doge, and I do not think that doge deserved that at all, but he did it anyway and I am aware of it and saw his tweets, I didn't ignore it just because I didn't agree with it.

So, all I am saying is you should check them out even if you disagree with them, there is no hurt and actually it would benefit you, if you checked people who you disagree with saying or doing so that you know what your "opponents" are doing.

The risk management you must do upon getting into trading relies on the amount of capital you have that is intended for trading purposes. No exact percentage to be specific on the amount you can be able to risk for doing trades for the reason that you must know yourself well as well as your capacity and be realistic into which amount you can only attain to risk for that specific trade and that will also depend on the kind of coin you wish to trade with for if it is worth risking, then there is somehow an assurance that you can earn from it. Just always remember the limited resource you have is your funds so be responsible on budgeting and handling it wisely so you can make up gains instead of losses in trading.

Varies from trader to trader because we do have different capacities or capabilities when it comes to financial aspect and risk management levels which amount will really be in different figures.

To know that there are several factors that would affect on making out our own position in the market.Thing here is that you should really be ending up profitable and dont tend to chase up losses

or trying to make out some perfect trades because it cant really happen.Just really make yourself sustainable and that should really be target you had in mind.

We always keep on telling that we must trade an amount that we are willing to lose or we are willing to take risk to lose. But i guess dealing with cryptocurrency was a more attracted than what we are expecting, we are expecting that we could smartly analyze the market so we can formulate a good risk management but i guess this is what a thing that sometimes aren't happen in reality because we are tend to do a things that wasn't align on the first plan because we have this mindset while we are on the process that this was the best thing to do rather than the one thaw was already planned.

It all depends on your strategy. First you need to determine which strategy you are following. Are you trading short term or long term? Are you more of a trader or more of an investor? What level of profit is sufficient for you to close the trade? Do you trade only one trading pair or a select few? Or do you trade any trading pairs?
   As for limiting the risk of 3-5% per trade, this is a very popular method. But what happens if you have a series of unsuccessful trades, each of which takes 5% off your deposit? If there are 10 unsuccessful deals in a row, then you will lose more than 50% of your deposit. What will you do next?

Not many people do that, it is really not that possible for many people to actually leave their emotions aside I suppose, they should 100% do those things but unfortunately they do not. I personally do exactly this, my goals are a bit dynamic because I do trailing stop loss so that if it goes up I just let it go up constantly, I do not like selling at certain point until it actually starts to fall, but always have a 10% stop loss ready at the peak so that I would be getting out with 10% missed profit but that's about it, nothing more to lose, and that helped me make thousands of dollars in profit, that is really a cool thing to do for me.

Of course not everyone has a goal but everyone who starts trading should have at least a goal to make this much or that much in order to keep following that strategy otherwise they are just winging it and that is not a good way to trade.

clear objectives and how the trading strategy to be carried out must be thought of first. Many people start trading without any preparation, they enter with their fillings without doing market analysis and what strategies will be used. This kind of trade carries a lot of risk. Risk management, financial management, psychology management need attention, because it will determine the success or failure of trading. It is better to earn little by little than to force it to get a bigger profit.

Things have changed drastically OP, now it's not the same as when BTC drops, alts will follow because some alts go against the trend and show great profits while when BTC starts going up, alts are outperforming BTC in terms of gains and recoveries are damn quick (let's take example of today's dip and then recovery, both were as big as BTC). I believe people get rekt because they simply don't follow their own rules of not going all-in into one position. Sometimes it becomes profitable when you understand the risks involved but have the guts to go all-in just many of us May have done today.

In fact the risk should be even lower than that especially if you are investing in new altcoins, this does not mean that you should only invest 1% of your capital on each coin, what this means is that you should only be willing to lose that amount of capital on each trade.

This is in fact very easy, lets suppose that you have 100 dollars so a loss of one dollar should make you sell whatever coin in which you invest, if you invest in a coin 10 dollars and each coin was worth one dollar then that means that as soon as that coin is worth 0.9 dollars you must sell as you will have a loss of one dollar or 1% of your capital.

You asked a very good question, as my opinion don’t invest your all Fund at once and Don't invest your all fund on One coin. If you have 1000 usd then you can invest 300 usd, and if you see that your invested coin again has dump, then you can again buy. This will very profitable for Trading. I use this formula.     

The risk you can accept depends on the type of trading you use, If you are a short-term trader then 2% -3% is enough, but if you are a long-term trader the risk of 30% -40% in my opinion is still small, because the long-term trader's profit target is above 200% to 500%.
Other considerations are sometimes needed, such as the funds you have, the more funds you have then you can accept a greater risk, but also with a potential profit of more than 500%.

Always be friendly with the stop-loss feature that's for sure the best and always the common duo to risking what capital you're trading. Well, I think 2% is manageable but on my end I always go with the 1:2 or 1:3 risk reward ratio, risking my 1% to gain 2-3%. For a beginner I think it's always advisable to stick with 1% and consider it as a learning approach and when you get used to it then go with much larger percentage.

If you want to trade always remember this cycle Bitcoin > Major Cap > Mid cap > Low cap this is the cycle of the smart and dumb money in the cryptocurrency sphere.

You are right and setting goals is as important as making strategies, having unclear plans or having unrealistic plans are not healthy for a trader specially in crypto market where profits are unstable and so are the losses and having balance between expectations and reality is a must. One cannot expect to double their bankroll overnight and if they are trying to do so, better option is gambling for them.

I agree with OP that we shouldn't trade too big or buy too much of any coins and 3-5% is a good amount to invest and I might lower it even further if you ask me because our capital should never drop below 50% and the remaining 50% shouldn't be allocated to 10-15 coins instead a lot more and diversifying your portfolio is one of the secret to success. Don't accumulate garbage but don't let one coin convince you to buy all of it.

Risk management is very pivotal to the process of being a successful trader. A lot of good traders have blown their capital just because they became overconfident and ignored risk management in their trades.
There is actually no exact percentage of capital to place a trade in the process of risk management. What I tell people is that they should only trade what they can afford to lose. Don't trade 3 percent of your capital if you can't afford to lose it.
The whole essence of this is avoid blowing up the capital equity in a few losing trades

Hey man! When it comes to making an investment/earning out of cryptocurrencies you need good capital or the patience. Rather than requesting people to help with risk management, just try to explore and learn more about the market. Start investing/spending a small amount from your regular earning. This will give your family a big reward in the long term. Atleast you need to hold cryptocurrencies for four to five years. In between if you find the rise to be worth enough for the investment, then make use of it.

Trading made so easy with the help of all those stable coins, if a trader feels that dump is coming they can simply trade their coin with USDT like coin and protect the capital from huge loss and also they can have stop loss at 10% to execute your order in case of sudden dump.

But the real fact is, it is impossible to find when the bump and sump coming so you are making every decision based on your assumptions.

Risk management is one of the main thing we should learn and we should understand aside from trading and reading charts, because there's no assurance in the market, cryptocurrency is very volatile, sometimes our TA may be shorted may be not hit by our entries at some point there's no way aside from cut loss so risk management is hard but very essential to know in this world of trading.

You invest 30% of your bankroll within a single token? That's really risky I feel and I am surprised its working for you. Maybe you are investing in very good tokens like polkadot or recently BNB and that is why you are making profit otherwise 30% means if you make 3 bad decisions, you are out of the game.

Does this mean if I have 10k USD bankroll then I should buy tokens with 100 USD (1% of 10k) and sell them for 102-103 USD since you said 2-3% profits? I actually like this idea but 2-3% gain is really low considering the risk with altcoin market and if you somehow made the right investment why just content with 2% of profits.

There is a way and that is through chart analysis.

And that's not that just based on assumptions but basing it off through what the chart tells. It may not be accurate sometimes but most of the time, with traders that uses charts analysis, it's helping them.

If technical analysis were irrelevant then we wont really be seeing tons of them that do floats in the market.Every now and then we do saw chart analysis which it might
not really be that accurate but still better rather than on making trades blindly or without any basis.You can really see the difference when it comes to profitability
into those who do just put trades without basis and with those have corresponding analysis towards into their next action to make.
It doesnt matter on what kind of analysis you are into neither fundamentals or technicals, as long it do benefit you out then that what counts.

I've said that sometimes it's not. Just as this bull run, nobody have thought of it from the end of 2020.

Right, it's better to have those analysis and they are directing traders to what it should be the next scene of the chart. Those experts on this have been benefiting on it.

Unlike those traders that just put their trust without analysis.

Seconded. Although it's a bit different for those trading as you need to be careful about how much you could lose if the trade goes sideways.  Since there would always be winning and losing trades, it's important to know that a good risk management strategy will help any trader stay profitable regardless of the amount of times he losses. The best traders I've seen are the best not because they win all the time, but because they remain profitable even when trades don't go their way.

There's a lot risk management does for a trader. You don't have to turn winning trades to losing ones.

Well, the risk perhaps we considered and understood as the level of possible financial loss. It should all those values are measured in percentages so that you will determine the possible loss. Risk management is a very important task in trading, this is also will help you to minimize your possible loss and must prepare for the possible outcomes. It seems like you have a trading plan, --your action should be detailed and you can have possible correction once you have seen there is a mistake. Indeed, there is a lot of risk that you may consider.

You're on point. Coming from someone who has been trying to get more trading experience, I'd say that trading involves a significant amount of risks, one if not thoroughly managed could be a problem especially in the long run when a trader have several badly managed trades. I  didn't know how important it was until just a couple of months back. Didn't take it seriously in the past and I lost majority of my trading capital. There won't be a repeat this time.

Risk management is very important in crypto trading, therefore it is important to learn. Because usually when we trade too relying on emotions,
this will cause panic that makes us experience losses. Therefore risk management is needed to help traders avoid large losses, so one of the benefits of
risk management can minimize losses when trading. Then with risk management, we also dare to take risks to get a higher return than risk.
Actually, in my opinion, risk management is easy to do, but the problem is we are not disciplined in the strategy we made at the beginning.
This is what ultimately makes risk management not going well.

In crypto world that is as dangerous as it gets, there is really no way you could profit with that type of strategy that easily, it is really unlikely. Why? Because crypto moves 10% easily, it is really basically nothing at all and you would end up with 1% daily, the spread is that much, it would definitely change the price super fast and you will lose money quickly multiple times a day which would mean that strategy fails you that much.

Of course if you are doing it right now and happy with it there is nothing I can tell you, but I have worked with 5% stop loss before and even that was too quick for my test and I ended up switching to 10% first and then 15% and with 15% I am doing fine, I do not lose much that way and it rarely hits that level, at least not on a daily move but a whole correction or crash would be required for that to happen.

If you are a long term trader willing to hold your positions for a long time then I would say that a loss of 30% or 40% is still too high, you must protect your capital at all costs as earning money in the markets is so difficult.

So I would say that a loss of 10% of your capital in a trade that last a few months is reasonable, anything more than that and you are going to regret it, as coming back from such losses becomes exponentially difficult especially if you lose several trades in a row.

Actually if you are new in trading its better not to invest with your whole capital.
Because everyday will not be yours.
So its better to invest wisely and set a stop limit order in order to save yoyr capital from reducing ridiculously.
So set a stop limit order in 2-5% loss
So that if Your assumption goes wrong you Won't lose your whole capital

2-5% is really shallow if you do deal with cryptocurrencies because we know on what extent could price volatility can affect your trades.Setting it up on that percentage
would just really end up for you to chase up your losses because it would really be that fast manner since hitting those SL's would be damn easy.Its not ideal imho
based off on experience thats why i did get rid of that kind of strategy when it comes to risk or bankroll management unless if you can spot out or in front of
your pc all the time where you can changed off decisions on point.

I agree, risk management is always there but there are ways to manage and/or minimise it. Having what I call 'an exit strategy' is crucial to avoiding pitfall which often happen as a result of market volatility.

Even if you don't have these exit strategies in place yet you will soon come to realise how much loss you can avoid by having them. Ultimately, I find that you need to experience it for yourself before you become serious about implementing the exit strategies talked about by @taufik123.

learning to do risk management will be very good for the integrity of your capital. Trading is not just buying and selling, but how we can maintain our capital, be able to predict the risks that will occur and get a definite profit and in accordance with the strategy. Besides doing risk management, good capital management and psychology will also affect your losses and profits. Especially good psychology will have a good impact on your trading. Technical analysis is also important and must be studied in depth to be able to read where the market is going.

I agreed with your idea of investing with $300 $200, $100 out of $1000 this is very achievable if the investor or trader make a proper research of the coin with a good potential and risk to reward ratio or trade with the said amount which I believed the risk is worth taking  e.g some coins has the tendency to pump 5X or more however trading with a 2% to 3% of $1000 the profits earned doesn't worth all the efforts and time i.e using a mere $10 to trade is just a waste of time.

In fact there are many ways to manipulate your capital so you have more room and your stop loss is not so tight, if you invest all your capital in a single coin then it is true your stop loss will have to be 2% to 5% from your original entry point.

But if you invest half of your capital suddenly your stop loss can be anywhere from 4% to 10% your entry point and still lose only 2% to 5% of your capital, did you see what happened there? The smaller the amount of capital you invest in a coin the bigger your stop loss can be, so supposing you are willing for the price of a coin to go down 20% before you sell and you do not want to lose more than 5% on the trade the maximum capital you can invest in that coin is 25%.

Yes, its unpredictable but somehow having our own analysis will really be helping us out on making out predictions basing off with those analysis that had been made.
Risk management is a thing that you would able to mold up when you do deal with this market.We do really need that for us to sustain or survive this market.
If you wont do nothing then there's no where you would able to survive this fierce market.You should really be prepared for that since from the time you
had decided to deal with this market.

Understanding the market psychology is important and this comes in a few years after having watched the market or traded actively. Theoretical understanding has little effect here, it is a more practical thing. You sell when the market pumps and you buy when the market crashes. That is how you take advantage of the situation. But most traders do it wrongly without even knowing.

Both fundamental and technical is important but even then TA will not be a 100% predictor of anything. It can give you an idea of which side the price might move but you have to decide the next step. You cant blame TA for ending up in a loss. This develops with reading of charts and learning how quickly the market normally reacts to changes in news and politics.

Many traders do not learn risk management when trading, so finally suffered a loss until the capital ran out. We must realize the importance of
risk management in crypto trading, therefore learning knowledge about risk management is a must. The difference after mastering risk management
with before mastering risk management for me is clearly different.

Partition of capital is the first step in carrying out Risk Management, usually my capital is divided into 5 parts. I will use the first part to buy coins
that I think are profitable, but if the price goes down, I can use the second part to buy again coins at a lower price. The third to the fifth part is used
to buy more coins if the price decreases. By trading like that I feel much calmer. The second step to implementing risk management is by setting
stop-losses and take profits, which traders have to do. In order to be useful for reducing risks due to volatile crypto price movements. By carrying out
the two steps I have mentioned, risk management should be carried out properly. And we can become successful traders.

- A small percentage of people in trading really do not learn how to manage risk and by the time they realize this mission, their accounts are running out of money and except for those who don't love knowledge, I still see a lot of traders who know how to manage risk but still try to fight their ideals, fight the market full of these nightmares. The methods and principles for dividing capital and managing similar risks as you have been mentioned a lot but overall, people are still the most important factor here, no one can force others when they don't like these principles.

That risk management usually comes from dividing your money into pieces and many people end up failing to do that. I normally put only 5% of my whole portfolio into just one thing, I never go all in with just one coin, and when I am buying that coin with only 5% of my money, I also place that apart 10 times as well.

If you want to know an example that means if I have 10k dollars, 5% of that is 500 dollars, that means I invest 500 dollars into something and I split it 10 times for each week, meaning I buy 50 bucks worth of that coin for 10 weeks to get to that 500 dollars. If you keep doing this for 20 different coins that you really trust, not centralized stuff like ripple or bch or bsv, stuff like that, but more serious coins like btc, eth, so forth that would mean that you would end up with a great portfolio and that is how proper risk management can be done.

how can you protect your capital when you already risk it in trade but for you to protect it you will not risk it in any risky activities and you need to convert or pull it out if its in crypto form but i agree on what you read ,
 thats true that we need to risk small in trading because trading is verry risky and 3 to to 5 % isnt considerably big  .
alts do dump when btc dump but when btc pump alts dont dump  .
your not always in a loosing situation if you trade with alts

Well i guess learning on how to manage the risk that is inevitable and always present whenever there is a trading or investment presented is a must. Even in gambling, we are dealing with the risk, or should i say whenever there is a capital or principak or anything that was relevant to us that might be used in unsure return was considered already as a risk. It's inevitable to get lose sonetimes but with proper risk management it could minimize how much we can lose.

Risk management helps cut down losses and protect money against potential losses in crypto trading. When the risks are managed effectively, the traders can make more money in the crypto market and avert losses.

Risk management is the ultimate key to successful trading. Of course, losing money is a part of trading, and everyone does that. But good traders respect and manage their risks.

You must be able to manage your risks and cut losses so you can continue to trade. Managing risk also means protecting your capital.

Risk-Reward ratio - It is the standard measure used to compare the potential returns to the possible loss. A trader should risk only the amount he/she is ready to lose. E.g., If you have a risk-reward ratio of 1:3, it means you’re risking $1 to make $3.

Stop-loss - By far, this is the most effective risk management strategy a trader can make use of. Stop loss is the ultimate key and the most effective way to mitigate your risks (and cut down your losses). A stop-loss percentage is the amount a trader can afford to lose when the market doesn’t move as expected. Stop losses help prevent larger losses from occurring in the volatile crypto market. It is an excellent tool for risk management. Most trading platforms and crypto bots offer this tool.

Leverage trading - Using borrowed money to trade cryptos is also one of the best ways to manage risks. When you trade using leverage, you can invest a small amount and trade with a bigger value. Then, when the market moves in your favor, your profit potential increases simultaneously.

Spread monitoring - You should understand how the ‘spread’ works in trading to track the risk potential. The spread effectively shows the difference between the buying and selling prices, and also, you can predict the direction in which the market is moving.

actually there are some occasions that when bitcoin goes up in the market some of the alts goes down and making an opposite direction, but usually they're doing the same way wherein what's the reactions of bitcoin,. like if it goes up alts will goes up as well when it goes down definitely they will going down, and on this current situation of the market is the enough proof how alts are affected and seems connected with bitcoin.

Yes, you are absolutely right, if I myself it is better to divide our capital into 3 parts. The first 30 percent is for trading, another 30 percent is preparing to buy coins while it is being corrected, and another 40 percent is for coins that can be invested in 1 or 2 years such as ETH. So it's not all-in. So I can backup my finances. When I fail in trading I still have other investments and buy coins when correction.

This is how it works.

BTC goes up..alts go sligtly lower.
BTC goes down.. alts go much lower.
BTC stabilize... alts goes up.

3-5% can be large or small depending on how much you are investing. I find that 10%-20% is a good amount with good risk management strategy that includes using sl and tp.

Everything is correct. Better to divide your deposit into 100 parts and use 1% on every trade. Anyway, as long as you are a beginner.
The next thread discusses how not to do it, namely, take the x100 leverage and go all-in for all the money. Hopefully newbies will learn a good lesson from other people's experience.

There are different phases of the market, we have a time when both coins pump and dump together like what we're experiencing now, that's the market dumps affect both industry. Then we have a situation when Bitcoin pumped but the altcoins don't follow instead they dumped and that's when Bitcoin is on the run, we're best advice to trade Alts against USDT then and not Bitcoin if not you'll be rekted.

We also have scenario when it's time for alts to partake in the bullish market, this phase sees Alts producing more 24hrs gains than Bitcoin, usually Bitcoin is static at this point or her gains are in the one digit rages.

You best have to understand which phase the market is in before you start trading that way you won't be in the dark and can speculate correctly on the direction of the market. When you understand what you're doing and have perfect the skills of trading then it'll become less risky.

Yeah, this way trading bitcoin in long is easier and effectively profitable; for example, if you have bought bitcoins at whatever prices then when bitcoin will be trading around $70k levels then you will be in definite profits, lol  ;D. The catch here is, your patience and you are trading bitcoin and in spot market. What I mean here is, if we focus on few things out side of analytics then we will get few advantages to manage the risks within our control.

Not trading with all 100% of capital must be a basic rule of risk management but these days people are going for 1000% or even 10,000% of their capital by availing leverage. I do trade up to 10% of capital for one trade and at a time I never cross 60% of my capital across my all trades.

Both are right, because we can't predict when we will face losses and risk management (in case it is spot trading) we can do something that maybe will cause less price in ROI and we don't need first price to get our capital back or maybe take profit with it.

Risk management can be applied in all aspects of crypto, not only in trading alone.
What it makes so hard for beginners is how to manage it in a specific situation. I mean, we sometimes forget how it uses due to some factors. More often we are bothered by our emotions, it sometimes because of being greedy...

I tend not to agree that Risk Management will give us protection 100%. No, that certainly matters to the person who applies it their life.

I agree with you. Sometimes people who are very good at managing their finances without being taught to manage themselves and their emotions are also not balanced. Mental and emotional are really very important.. if we play trading with emotions and are ambitious, let alone greedy, I think many people fail because of that. They just lack patience.

Risk management is one of the most important business ventures traders who are unable to manage their risks properly can lose everything by not reducing losses in a timely manner by keeping very large and very risky trades or by not showing adverse price changes in a timely manner. Although it is almost impossible for trading to consider all aspects of risk management it is important to control one's emotions and move forward with patience will help you manage the risks of your short term business.

I don't think this needs to be discussed again, because after all, risk management will never be separated from everything in life, especially related to investment. Everyone should have understood the concept of risk management, whatever investment choices we make, they all have risks. Risk is something that has not happened and has an effect in the future, just stepping left or right has a risk. Moreover, choosing the coins to buy and sell.

True, when it comes to investment then risk management is something should really be standard on where someone who do tend nor plan to invest will be considering on how he would handle up his funds or investment with those factors that should really be needed to consider because we know that investment
isnt something that you do just put and wait up for it to grow.Of course you would really be needing lots of time and effort to make it grown and also you should be aware that this isnt always talking about gains because there would be also losses and failures on where you should make yourself to be ready about it.

I personally think that risk management is an aspect that is difficult to execute accurately in trading, but still can be done in numerous ways. I acknowledge that there is no one standard risk percentage but depends on a situation and the amount that is being concerned about. Nevertheless, analysis and constant monitoring could definitely help.

From what I have learnt through my experience in trading cryptocurrencies I can say that risk management is a must without which we are most probably gonna lose more over the period of our trading days. Whenever we plan a strategy we should always put stop losses and carry out the risk management.
Our aim should be such that for every 5 trades we should win at least one  or two trades which neutralize our losses.
This is where the risk to reward ratio comes into play. You can easily find out the proper risk to reward strategies on this forum and google and how to implement it on our trades.

Yeah there are tons of strategies are available but most traders are simply going with what their mentors/friends suggest and that's why we do see most percentage of traders are with same kind or slightly modified strategies and the results from crypto trading is also almost similar regardless of our capital nor experience levels.

The level of accuracy in your trading depends on multiple factors and the vital one out of them must be your efficient risk management. You can boost your accuracy over your experience error and trail method along with strict stoploss levels.

Yes, altcoins go down harder when Bitcoin goes down. And the thing is because Bitcoin is more stable than most of them. For that reason, when the market starts becoming bearish, a lot of altcoins traders sells their coins to invest in Bitcoin. That’s the same thing when Bitcoin’s value increases, some altcoins can increase more than Bitcoin.

A lot of them are easily manipulated, because they don’t have a large market cap like Bitcoin, so they won’t be as much stable, that’s why they will have much bigger increase. It’s just like what happened with Dogecoin this year, that’s a good example.

I guess it would be much better to go with something which is already tested by known people rather than innovating something or trying something which is completely new to us and for our friends and colleagues, right? I am also using few of most famous strategies because I got trained to make use of them and I verified them in real world market conditions when my friends were executing those strategies.

Adopting the strategy which is already known and tested also must be part of risk management. Fortunately, most traders are already into this without actually aware of what they are doing.

right, the capitalization of bitcoin is very large, so to manipulate it of course requires a larger capital as well, different for altcoins, where it will be easier to manipulate this market. therefore we must be able to take advantage of opportunities as you stated

In protection to your capital, you should have a smart decision in times of 100% pump for btc. Don't wait for another bounce because there's always a sad reality that altcoins pump was just temporary and not sustainable. When you see your money is at risk then don't wait for another lucky increase, eventually you'll realize that crash is starting to dominate.

Everything depends of your education in trading. If you have no experience don’t do it. It's true that memecoin has performed this year massively, but playing with such memecoin are extremely risky. You can just sit back with bitcoin and relax with holding and spend your time on other things. Typically great quality coins give you great return. As long as you stick with your strategy you are OK to go.

right, don't be greedy for the dreams that we will achieve. if we realize that we are not good at analyzing, of course investing in bitcoin will make us more relaxed. even if the price goes down, as long as we are able to be patient it will benefit in the future. I personally don't like to invest in coin memes, because it's like gambling

Yes Risk Management is very Important in Cryptocurrency Trading.
Mostly when Btc Pump, most of the altcoins pump and when btc dump, most of the altcoins dump, But sometime this happen reverse, so in this situation risk management id very important , always just trade from 3 to 4% your portfolio, so that if you loss some of your trades then easily you can recover, so always trade 3 - 4% your portfolio

Trying something new, of course, you have to risk first because you don't know what will happen with the new strategy that has been made, while by trying something that has been tested by many people, that strategy management already knows how the experience is and I think must be able to do what they want and at least we can adapt to our management and the market that is in any condition, therefore I think it is necessary to try and run it.

Honestly, I now see many tiktok videos that share trading strategies in crypto with large capital and how my management there can learn and adapt to my situation.

Dealing with crypto does involve lots of trials and error because you would really be finding strategies which you do seems that it does give you advantage in terms of making profits.

Risk management should really be a default thing to be considered when making investment because you are at least aware on how you should allocate your capital on particular situations

not just putting up in one go without minding the risk will surely burn you out too early.If you do like to sustain yourself at least then better be minding off with this very important factor.

I think mistakes in analyzing are normal, where everyone does it, so we have to evaluate every mistake that will be used as an experience. Besides that, before we decide to transact risk management is needed to calculate how big the chance of getting a profit, is it in accordance with the profit that we will get. that way we will be comfortable to make transactions

The question on risk management is a difficult one because its all about risking your account, yet if you risk very little your gains will similarly be very small. The point is, you trade wisely. Don't risk too small or too much. Risk what you can lose comfortably

If you aren't knowledgeable and wise with your trading, even if you risk a small amount when trading, it doesn't guarantee that you will gain a profit let alone a small profit. I say that assess yourself first before going in trading, try to assess your patience, risk tolerance, experience and knowledge before going to trade.

nevertheless, it is a sort of trading preparation and if we don't want to lose our funds because of our ignorance and market NO-HOW, it is a must to acquire before to start. We have to remind ourselves that there is a joke in trading and a simple mistake will bring you huge losses or worse.

Risk management could be hard to understand how it helps us but as we are in a crisis and troubled, we can appreciate it much more what we can imagine. It just needs to work on it.

Someone who does not wish to risk money in this field, should stay out of the field. Trading is not a job that gives you a guaranteed income which would be a day job but a risk-vs-reward scheme. Keeping the exception of professional traders aside, because I doubt how many of those actually exist.

True, but to be fair most people tend to risk more as time passes because they can see older opportunities going away and they dont want to miss out the next time.

Best way to do that is by trading itself. Maybe one can go for dummy trading challenges for getting an insight into the market and how it works, how to manage capital and risks.

Remember that risk is an inherent part of the game. To be able to make decisions to reduce the risks is the sign that you are doing it right. For that, one should make sure not to put all their money into crypto. You need to have backups to keep you afloat during bad times on one market. This is not a sign of being a no-coiner, but a diligent investor.

right, risk management is very important so that our capital does not run out in one transaction, because there are still many opportunities to win the next transaction. in this case we can allocate what percentage of the risk level for each transaction, so that if our losses have entered the target then we have to cut losses, and wait for the next opportunity to open another transaction

The cryptocurrency market works totally different from all other financial markets with so many factors responsible for their trends. The general alt coin market most time, always respect the rise and fall in Bitcoin maybe because all other development and interface is found and built of Bitcoin foundation which makes all other coin to respect that fact.

Respecting risk management in crypto is very important to traders. It can guide one from future loses if enough preparation is made. The crypto market by is very volatile compared to other market with lesser volatility. This is why losing funds in crypto is very easy and certain to making profits which can easily be lost if care is not taken. Many investors had lose huge funds in crypto because of lack of knowledge to know when to take profit and when to leave the market.

Dont go all is really included with that risk management factor which people should really be minding off from time to time because when it comes to that word alone then it is already
including fund management, decisioning management, emotional management, analysis management and other since you are particularly dealing on something risky due to volatility
which you would really be needing to sustain yourself and on the way on how you do handle up on different situation because market is unpredictable and does have random movements.
So you should be aware and be prepared for that most of the time.

I have seen that when bitcoin is down there are some altcoin hold their position and these ventures are exceptionally solid in help. The base instability is the best climate for learning the exchanging yet the medium unpredictability can cause enormous changes if the cash the board is disregarded by the broker.

In trading risk management is key, no matter the knowledge you got or experience achieved, without risk management you gonna crash someday so it's better to always apply risk management. Learn how to possibly manage risk, i can recommend 20% of the whole account size used for trading, 3 - 5% to me is a very good risk management but too small for trading and i will call that over management, and one thing about it is that it will fetch very little profit.

You are definitely right!

Risk management is a must but to know that it is already included about risk management about experience because you aren't experienced if you don't know this so its just been part of it.

It is one of the most needed for you to sustain yourself in trading because we are dealing with moving prices and it would be more harder if you are really trading actively.

For you to sustain then you should know on how to handle your capital and make more worthy trades.

Trading cryptocurrency is highly risky and speculative. You should ensure that you fully understand the relevant risks before you start trading, analyze market fluctuations and trend graphs, use various indicators to analyze price trends, and learn to become an investor with rich financial market knowledge before you start investing. Controlling market sentiment caused by market fluctuations and learning to stop loss and profit in time can help reduce the risks caused by the violent fluctuations in the price of cryptocurrencies.

Agreed, this is the best RR for me or 1:2, but it still depends on the capital, and most of the time, risking 2% of your capital is best. However, we all have our own preferences; you should find your own Risk Management system that works best for you. Just a note, don't be greedy and book some profit and leave, just get some meat from the market and you're set for the day :)

Btc is the leading crypto and stand a chance to dictate and a determinant for others, it will be so interesting if your investment is highly vested on btc while a smaller percentage on alts.

Any dump or pump on btc is incomparable to alts, it is occasional on btc, while other crypto can be frequent and drastic in term of fluctuations.

This is a wrong conclusion, maybe correct in some fiat markets but not applicable in crypto markets.

Majority of altcoins that exist do not have any basis of running anyway, keeping aside some of the top10 altcoins. Meaning that the lack inherent market making capability. You will not see a specific altcoin making the crypto market rise but they all follow the performance of bitcoin.

Now some outliers may exist because pump and dump schemes often run in many such altcoins. It does not indicate anything like "base stable" - Nope, it is just an outlier due to some specific reason which is not worth putting time in. In any case if you have doubts, you should look back into the altcoin's basics and try to understand if they can generate a market without doing anything and then only you can get your answer. If the altcoin in question is a obscure and less talked about one, be sure it to be a spillage of the pump and dump going on in shady discord/telegram groups.

Have been into cryptocurrency for few years now and have hard different experience what I notice is that if bitcoin is dumping other altcoins also dump massively whenever bitcoin is stable most altcoins are also stable and if bitcoin pump massively other altcoins still dump but if bitcoin pump gradually other altcoins also pump. That's just what I noticed about bitcoin pump and dump how other altcoins pump and dump if bitcoin is pumping or dumping. I might be wrong but that's just what I notice.

I have seen that when bitcoin is down there are some altcoin hold their position and these activities are profoundly solid in help. The base unpredictability is the best climate for learning the exchanging however the medium instability can cause large vacillations if the cash the executives is disregarded by the merchant. There are such a lot of exchanging exhortation strings posted that I essentially see excess strings at regular intervals. We need to change our cash to be utilized in exchanging and not covetous to pursue benefit. The base unpredictability is the best climate for learning the exchanging however the medium instability can cause huge changes if the cash the board is disregarded by the merchant.

That's because some of those altcoins aren't directly tied to bitcoin but sometimes other altcoins, look at SLP, when the prices going down for bitcoin, the price of each token rose than what many have expected.

Yes, don't buy a single coin only. It is better to diversify assets, buy at least 2 coins. But if you have more capital, buy more crypto coins, then you can maximize the opportunity to gain more profits. If you only rely on a single coin, it will be difficult to take sufficient profits.

Do you mean that don't use all funds to buy crypto coins at the same time?
So, you buy crypto coins with half of your funds, the rest is just kept in USDT. Is that true?
This is actually a very basic strategy. This means we don't use all funds to buy because it will be too risky. Money management is one of the keys to success in trading.

Indeed. Smart and wise diversification.
should say smart and wise diversification?
Because diversification will not pay you or will not be worthy if we choose the wrong coins.
Well, we can put Bitcoin in the first list of assets. And then continued by the top coins, of course, top coins will be also the first options. but we should also know which top coins are suitable for us, because not all top coins may fit our type of trading or investment strategy.
And if we want to take higher risks, we can continue by choosing the new or other coins that have strong fundamentals. Of course, it will be risky, that is why it may be only for trading or the short term until we can take profits at the right time.

I also have seen every coins downfall and how they hold their positions and it was absolutely great, they had proven everything. Aside from that, it was stable and a big help. Buying 2 coins might be great instead of 1 coin, if you can maximize the opportunity, surely you can gain good profit. There's another way also that you might be able to do, it is to divide your money into two, you can keep your other money while the other is to buy stable coins which will help you gain profit.

It depends upon the person that how much he can afford and is he good at trading ? Risk management is also important in trading. It also depends on the person that how much a person can loss and can afford. Which infact can be risky for the person.

Actually everything in crypto trading must also be prepared, especially in risk management that must be faced, this is the most important thing where we must be able to regulate when the market is going down and up, what needs to be used in the management, whether to spend money to buy or not. holding until the right time, of course this must also be done carefully because for me trading requires the necessary skills including analysis and also knowing a little bit of the direction of the chart being analyzed.

Sometimes Fomo and panic is also still a trap for traders who are still affected by it.

Risk management is only way to reduce your loss and make more profit. Without proper risk management you cant able to survive at trading. I would suggest you to watch some videos from here: https://www.youtube.com/watch?v=LKQH1EsFVKA&list=PLfs71TITjLv1OtRO7VnXI-LM7Rt9jlDtZ This man doing good job for us.

Risk management is the number one thing you should master when dealing with cryptocurrency.
At the same time, you should understand that risk management here has many unusual properties.
The main thing is that most of your risks will be unpredictable due to the fact that very often the market movement will not succumb to any logic, and many things that happen will not depend on you.

In trading, this is a game of probabilities, you try to predict one or the other event, in a local time frame, based on incomplete information.
Obviously, there are too many things that you cannot control, which means this can be attributed to unforeseen risks. However, you can control some things, for example, the percentage of the deposit to transactions.

You should really consider on doing this because we are dealing with a very risk investment which management of your time, finances is really very crucial or would really be needed.

This isnt something that you can just play around and since we are making use of money to earn money then we should really be serious on doing things.

You cant just dive in into the market without having these things because you would just basically be gambling out with your money.

Exactly, while it is not too late don't add more leverage or funds for covering margin requirements. Depositing more and trying to chase loss is like playing with fire, you will burn more capital and risks will be doubled. Predicting long-term trends is easy rather than playing with technical analysis tools on small time frames, managing risks should be easier on weekly charts too compared to 15 minutes timeframe.  The weekly timeframe and upper levels are best for analyzing the long-term trend, patience is a real money-making machine for this timeframe traders. At least you will spend only few hours per week to see what is going on the high levels of market.

You are right that risk management is important in trading but is mostly depends upon the person who is trading and know that how much can he loss and how much can he afford to loss. That is the point that risk management is very important in trading and keep calm yourself and keep patience as I say.

without risk management we could survive for long time , our balance could gonna zero only in single trade. some traders speculate their balance only in single trade in order to get huge profit in short periode, and for beginner it is not suggessted . Dont never imagine we will be rich man only in single trade and night , we will pass long journey to achieve it and learning patience will help us to realize it.

Risk management is an important component of trading. Risks are directly involved in trading and risk management is very important to reduce these risks. Bitcoin is closely related to other cryptocurrencies, and as the value of Bitcoin increases, so do the prices of other cryptocurrencies. Similarly, as the value of bitcoins decreases, so does the value of almost all other cryptocurrencies. However, in my case, it does not seem appropriate to hold 3 to 5 percent of the total assets in the case of risk management. This is because the market situation is not always the same and in many cases, the market in the high weight market goes down a bit and rises again and in many cases, this is seen up to a few times. This strategy can be applied if the market analysis thinks that the market will be downward. On the other hand, in the case of short-term investments, if the market analysis is not completely positive, it can be seen that every time there is a certain amount of loss that will decrease the assets. So depending on the market analysis different strategies of risk management can be adopted.