$BTC
đ Crypto Market Volatility & Risk Management
The crypto market is highly volatile, meaning prices can rise đ or fall đ very quickly.
This volatility is mainly driven by market sentiment, news, and social media hype đđš.
Low liquidity in some coins can cause sudden price swings with small trades đ§.
Large investors, known as whales đ, can also move the market with big buy or sell orders.
Global events like regulations, interest rates, and economic changes impact crypto instantly đ.
Because of this, risk management is essential for every trader đĄïž.
Using stop-loss orders helps limit losses during sudden market drops đ.
Proper position sizing prevents overexposure to a single trade âïž.
Diversifying across multiple assets reduces overall portfolio risk đ.
Controlling emotions like fear and greed is key to consistent trading đ§ .
Smart traders focus on protecting capital first, not chasing quick profits đ.