Position Sizing: The Skill That Decides Who Survives in Crypto
Most traders spend time finding entries, but very few think seriously about how much to trade. Position sizing is not a technical detail — it’s the difference between staying in the game and blowing up.
Two traders can take the same setup and get completely different results. The difference is risk per trade. One risks 1–2% and survives a losing streak. The other risks 10–20% and is forced out after a few bad trades. The market didn’t change — their sizing did.
In crypto, volatility is extreme. This makes oversized positions dangerous. A normal pullback can feel like a failure when the position is too large. Emotions take over, stops are moved, and discipline breaks down.
Proper position sizing does three things: • Keeps losses emotionally manageable
• Allows consistency across trades
• Protects capital during drawdowns
Position size should be based on risk, not confidence. Feeling “sure” about a trade is exactly when traders oversize — and exactly when the market humbles them.
Professionals don’t ask, “How much can I make?”
They ask, “How much can I lose if I’m wrong?”
Survival creates opportunity. Position sizing makes survival possible.
