Money Management Strategy in Crypto Trading

Digiasset News Dec 20, 2022

Money management planning in trading in crypto assets is one of the keys to long-term success. Money management or money management refers to the process of budgeting or asset portfolio management. Money management strategy or money management determines when a trader can start trading and how much to buy and when to sell assets. The importance of Money Management because in crypto trading, traders often rely on feelings and emotions. This eventually led to panic and ultimately no profit.

Determining tolerance for risk is useful for knowing what percentage of a crypto asset a trader is prepared to lose. If the asset has decreased according to the target set, the trader can stop trading and try again the next day or on another asset. This is useful so that traders do not lose all of their assets. Every trader has their own risk tolerance for the risk of each asset to be purchased, so make sure before investing/trading you need to understand the risk profile first.

For example, you do technical analysis when you are going to buy the BNBIDR market, there you also determine your risk tolerance, for example choosing 5% of the total portfolio/balance (in the picture available Rp. 2,211,300). For automatic calculations you can select/click the 25% number, then the Amount will be automatically generated. Then you can change it manually by means of the automatically filled amount (25%) divided by 5, because you will be risking 5%. Remember to always follow the numbers that have been set. By understanding the risks early on, traders will be more psychologically awake when the market is volatile. This is because the risk has been measured at the beginning before making a purchase on an asset.

Open a Crypto Trading Account Under 5 Minutes

Open a trading account for your crypto asset in Digiasset. Products traded include Bitcoin (BTC), Ethereum (ETH), Doge, Tether (USDT), Binance Coin (BNB), TRX, JUST and more assets another crypto that is in the top 500 on Coinmarketcap.

Tags