How do I manage risk when holding volatile cryptocurrencies?

Managing crypto risk involves several strategies. First, diversify your portfolio across different assets rather than holding one cryptocurrency. Set a maximum percentage of your total wealth to risk on crypto, typically 5-10% for beginners. Use stop-loss orders to automatically sell if prices drop to predetermined levels. Dollar-cost averaging—investing fixed amounts regularly—reduces impact of price swings. Consider your time horizon; volatile assets suit longer holding periods better. Keep assets in secure wallets you control, not just exchanges. Finally, only invest money you can afford to lose completely. Understanding your personal risk tolerance is crucial before entering crypto markets.