Managing risk is one of the keys to success for every trader or investor. This becomes more relevant to crypto due to volatility and a state of constant uncertainty. I would say that proper risk management will be responsible for at least 50% of your success.
However, there are no definite rules, as each scenario requires setup. You have to build it according to your attitude, plan, mood, and target. Now I will share my strategy, which can help your own operation.
One thing that can burn all trader profits is greed. When your coins go up and up, it's hard to sell them. this is common for beginner traders. You need to know these steps will only give disappointment in the end and this you should consider.
I strongly advise to spread your profits, this is the rule that I always keep, when taking advantage of trading, currently I apply the following distribution:
- 30% To reinvest in altcoin
- 25% To buy BTC
- 25% For the purchase of falling altcoin
- 20% To save in USDT
The latter two are really the most important because to prepare you economically in difficult times. It's tempting to reinvest everything, but smart money should always be one step ahead, which means it's ready for everything.