Effective position management is essential in the cryptocurrency trading process, as it helps control risks, protect principal, and increase potential returns. Here are some suggestions to help you manage your positions properly:
1. Understand and set your risk tolerance:
Risk assessment: First, clarify your own risk tolerance, considering factors such as personal financial situation, investment period, market experience, and psychological endurance.
Fund allocation: Determine the proportion of funds used for cryptocurrency trading based on your risk tolerance. It is generally recommended to use idle funds to avoid affecting your daily life. In the early stage, you can consider investing a smaller proportion (such as 5%-10% of the total funds), and then gradually adjust as you accumulate experience and deepen your risk awareness.

To survive in the cryptocurrency market and minimize risk, here are some key survival rules:

1. Study and research:
Understand basic concepts: Be familiar with the basics of blockchain, cryptocurrency, smart contracts, etc., and master common terms such as consensus mechanism, hash rate, public key and private key, etc.
Research the project in depth: Read the white paper carefully before investing to understand the project’s vision, technical features, team background, market positioning and other information.
Pay attention to market dynamics: track industry news, policy changes, technological developments, community activities, etc., and stay sensitive to market trends.