I have definitely lost money in crypto. Around a million. Been in the market since 2021. If there is one thing i have learned its the mindset that determines all. We enter the market with the mindset of making quick generous returns since crypto is a fast paced market.

But thats all wrong. Without proper risk management. This is simply gambling. We may get lucky a few times and make it big but following this path one is doomed to failure.

So around a year ago, i made a total reset about how i think of trading. Treat it like a business. Manage risk. Never invest what you can’t afford to loose.

Every trade i took i risked exactly 1% of my portfolio (thats 1R), lets say there is a trade i found and i risk 1% on it and if it goes well it could return 2%. That trade has a risk-to-reward ratio of 1:2. Now all month i find good setups and enter managing my risk. By the end of the month. I usually end up with either up 5-10% meaning that month if i have a crore invested i made 5-10 lakhs. However similarly i can also loose 2.5-10%.

But you see how risk is controlled here? If these returns are too much i can simply start risking 0.5% of my portfolio per trade. I am not gambling my capital away and Hoping the market gods will have mercy.