🎓 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.