Crypto Risk Management: Surviving 30-50% Drawdowns

Crypto is the only major asset class where 30–50% corrections happen during bull markets. Here's how to build a risk framework that survives them: **1. Position sizing: smaller than you think.** In crypto, a 30% stop loss is normal. For volatile altcoins, risk 0.5–1% max per trade. For BTC/ETH, 1–2% is reasonable. **2. The 25% cash rule.** Never be 100% invested in crypto. Keeping 25–30% in stablecoins reduces correlation risk and gives you ammunition for panic dips. **3. Know your exit before you enter.** Crypto moves so fast that emotional exits are disastrous. Plan your stop and profit targets before entering. **4. Avoid leverage unless you're expert-level.** Crypto exchanges offer 10×–100× leverage. Experienced traders in crypto use 2–3× maximum. **5. Watch for correlation cascade risk.** When BTC sells off 15%+, altcoins typically drop 25–40%. Don't be "diversified" across 10 altcoins — you're still all-in on crypto sentiment. What's your biggest crypto risk management principle?