Crypto Risk Management Guide: Sizing, Stops, and R:R

Crypto Risk Management Guide

Why risk management matters

Edge means little without controlling losses. A defined risk plan keeps drawdowns shallow and decisions consistent.

Core pillars

- Risk a small % per trade (commonly 0.5–2%).

- Use logical stops where the trade thesis fails.

- Target reward-to-risk (R:R) of at least 2:1.

- Avoid stacking correlated bets.

Position sizing step-by-step

1) Choose risk % of account.

2) Measure stop distance.

3) Risk amount = account × risk %.

4) Position size = risk amount ÷ stop distance.

Use the Position Size Calculator to automate this.

Stops and targets

Place stops at invalidation, not at round numbers. Check R:R with the Risk Reward Calculator.

Common mistakes

- Widening stops after entry

- Oversizing during volatility

- Ignoring correlation across positions

FAQ

How much should I risk per trade? Many start at 1% or less until consistent.

Try the calculators

Size correctly with the Position Size Calculator and confirm R:R with the Risk Reward Calculator.