Cryptocurrencies are known for their price volatility, with values rising or falling drastically in a short time. While this offers opportunities for high returns, it also exposes you to significant losses. Risk management ensures that you’re prepared for market swings and can safeguard your investment capital.
1️⃣Diversify Your Portfolio: Spread your investments across different cryptocurrencies, sectors (e.g., DeFi, NFTs), and risk levels.
1️⃣ FOMO (Fear of Missing Out): Don’t buy assets just because everyone else is. Research thoroughly before investing.
2️⃣ Over-Trading: Trading too frequently can lead to unnecessary fees and impulsive decisions.
3️⃣ Ignoring Risk-Reward Ratios: Always evaluate the potential reward against the risk. If the downside outweighs the upside, reconsider the trade.
4️⃣ Neglecting Security: Use secure wallets, enable two-factor authentication (2FA), and avoid leaving funds on exchanges.
1️⃣Candlestick Chart Basics: The body shows the opening and closing prices, while the wicks represent the highest and lowest prices.
