Risk management in cryptocurrency is crucial due to:
1. **High Volatility**: Protects against significant price swings.
2. **Security Risks**: Shields assets from hacking, scams, and fraud.
3. **Regulatory Uncertainties**: Ensures compliance with evolving laws.
4. **Market Manipulation**: Safeguards investments from manipulation.
5. **Liquidity Risks**: Manages the challenges of buying/selling large amounts.
6. **Technological Risks**: Mitigates issues from bugs and vulnerabilities.
7. **Diversification**: Spreads investments to reduce potential losses.
Implementing these strategies ensures stability and protection in the crypto market.
