It can be broadly categorized into four: Risk/reward ratio, stop loss & take profit, position sizing, and rebalancing portfolio.
▸ Risk/Reward Ratio
In trading it is recommended to not trade under the ratio of 1:1 and should be starting from 1:1.5. This formula, R = (Target Price – Entry Price) / (Entry Price – Stop Loss), will enable you to know when to enter and when it is unprofitable.
▸ Stop Loss & Take Profit
Stop losses is an execution which closes an open position when a price decreases to a specific alignment. Saving you from trading in unprofitable deals. Taking Profits lets you get out of the trade before the market can turn against you.
▸ Position Sizing
Is where you position your margin of portfolio by dictating the possibility of coins or tokens that are willing to be bought by traders. It is wise to never invest all of your money in one place. The volatility of the cryptocurrency market means that any trade, even a seemingly perfect trade, can collapse and result in a significant loss. There are strategies involved. Read more.
▸ Rebalancing Portfolio
The process of realigning the weightings of an asset portfolio is known as rebalancing. Rebalancing entails buying or selling assets in a portfolio on a regular basis in order to maintain the original or desired level of asset allocation or risk.