Risk Management for Crypto Traders: The Only Edge That Lasts

Introduction

In crypto, returns are intoxicating and risk is the only durable edge.

Position Sizing First

Risk-per-trade should be a fixed fraction of equity, typically 0.5–2%.

Kelly criterion offers a theoretical max — most traders should size below it.

Drawdown Math Is Brutal

A 50% drawdown requires a 100% gain to recover.

Cap individual losses before they compound.

Conclusion

The trader who manages risk survives the cycle. Everything else is noise.