The mistake a whole lot of people make most especially when they come to cryptocurrency trading is the fact that they always did not know what to do at the right time. One of the things I have come to learn about the crypto space or crypto trading is the fact that it is filled with both potentials and danger at the same time. I have seen people who entered the crypto space and they actually make something great out of it and I have seen a whole lot of people enter the crypto space and they suffer for it.

A lot of them leave the crypto space feeling disappointed most of the time because they lost huge amount of money. After my findings and from my own personal experience, I discovered that it is because they lack what is called risk management. I know many of us actually have heard about risk management when it comes to crypto trading but we still lack the mastery to practice risk management. Today I have come up with the right strategy and system to help you practice risk management.

Before I even talk about risk management and how to actually practice it, I will like by stating that if you didn't not understand the nature of the crypto market, it will be difficult for you to actually practice risk management. You need to understand that the crypto space is highly volatile. When you understand the Volatility nature of the crypto space, it will actually help you to know how to trade and when to trade it effectively. Also you need to understand that the crypto market is highly demanding so you need to be emotionally disciplined.

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From my own experience and from others experience, I have come to discover why a lot of crypto traders fail in terms of risk management is because they did not manage their position size effectively. Some of them start with a very huge position size that will even bleed their accounts rapidly. Some of them did not have that emotional discipline and like I said earlier, if you did not have strong emotional discipline, you will fail in the crypto space. And the last reason why a lot of people fail to succeed in risk management is because they did not have the right planning to succeed in the crypto trading game.

When it actually comes to risk management, there are some certain things you should pay attention. The first thing is that you should not risk more than what you cannot afford. When it comes to Nigeria, this is actually difficult to keep to date. A lot of Nigerians always risk much more than what they can even afford and at the end of the day, they actually suffer for it. I have seen people trade with their school fees, trade with their house rents, trade with other important funds. This is not supposed to be so.

Another thing you need to work upon is that you should actually use position size. I mean the right position size. Did not use big position size. It is better for you to make little profit consistency than for you to want to risk it all. One of the beauty thing about making use of low position size is the fact that it will help you to have survival power and that is what a lot of traders always lack.

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Another key principle when it comes to risk management in crypto trading is for you to lose stop loss orders. I learnt the hard way when I was actually trading. I can still remember vividly when I was trading many years ago, I lost huge amount of money because I was not able to set stop loss. One of the ways to practice risk management is that you should always set stop loss order no matter how sure you are about the entry of the trade. This will help you to control losses actually.

The mistake people also use to make us that they did not always learn to control their leverage. One of the ways to practice risk management when trading also is that you should make sure that you should control leverage. You should make sure that you did not start with high leverage if not, it will destroy you totally. The last one is that you should learn to manage your emotions effectively. This will be the last one I will use to round you. I believe strongly, if you can practice everything I have said about risk management, it will go a long way to make your crypto trading journey a successful one. From my own personal experience, one of the things that will determine the success and failure in your crypto trading journey is how well you are able to implement risk management principles.