🎓 Crypto Awareness Series | Day 5
Risk Management in Crypto (Beginner Guide)
Most beginners lose money not because crypto is bad…
but because they don’t manage risk.
Let’s fix that.
📌 Rule 1: Never Invest What You Can’t Afford to Lose
Crypto is volatile.
Prices can drop 20–40% in a single day.
Only invest money that won’t affect your basic life expenses.
📌 Rule 2: Don’t Go All In
Never put all your money in one coin.
Smart approach:
Diversify
Split your capital
Avoid emotional decisions
📌 Rule 3: Use Stop Loss
A stop loss automatically closes your trade if price drops to a certain level.
This protects you from big losses.
No stop loss = High risk.
📌 Rule 4: Avoid FOMO
FOMO = Fear Of Missing Out.
If a coin already pumped hard, don’t chase it blindly.
Most beginners enter at the top and panic at the bottom.
📌 Rule 5: Think Long Term
Quick profit mindset usually leads to quick losses.
Have:
A plan
Entry strategy
Exit strategy
🧠 Simple Formula
Capital Protection > Quick Profits
If you protect your capital, you stay in the game.