Investing

Trading crypto without a sizing and exit plan is like driving without brakes. This guide compares popular position-sizing models (fixed-fraction, Kelly, volatility/ATR), turns stop-loss jargon into clear action steps (stop-market vs stop-limit, trailing stops, Chandelier Exit, OCO brackets), and adds futures-specific safeguards (isolated margin, liquidation and maintenance-margin basics). References are included so you can verify each concept. Core concepts: account…

If you want a pro-grade view of your crypto portfolio, calculate both time-weighted return (TWR) and money-weighted return (MWR via XIRR), track risk-adjusted ratios like Sharpe and Sortino, monitor max drawdown, benchmark against a broad crypto index, rebalance by time or threshold, and keep precise cost-basis records for realized PnL. Use reputable price sources and keep everything timestamped and auditable. Table…

For small investors, diversified crypto exposure usually means one of three routes: multi-asset index products (like BITW/GDLC or European ETPs), single-asset ETFs (spot Bitcoin/Ether), or on-chain index tokens. Each carries different costs, liquidity, and tax handling. Active trading adds fee drag (maker/taker, spreads), slippage, and—on futures—funding payments. These frictions compound quickly for small accounts. There’s no long SPIVA-style record for…

Why combine crypto, DeFi, and NFTs in one plan Retail investors often hold coins on an exchange, park a little yield in DeFi, and dabble in NFTs—but manage each bucket separately. A unified plan treats them as sleeves within one portfolio, sized by risk, liquidity, and objectives. Index providers and analytics firms now publish methodologies and taxonomies that make this far…

Why rebalancing matters in crypto Rebalancing is the routine of nudging your holdings back toward target weights so that risk doesn’t drift as prices move. Major research houses frame any rebalancing plan around three choices: how often you monitor, what drift triggers action, and how far back to the target you trade. This structure keeps discipline during volatile markets—exactly what crypto…

Size positions conservatively, set drawdown guardrails, and rebalance on a schedule. Avoid excessive leverage and understand liquidation cascades in perpetuals. Don’t over-rely on exchanges; proof-of-reserves has limits. Use hardware wallets, passphrases, and (for larger sums) multisig. Treat stablecoins and staking as risk assets with policy and technical pitfalls. Use phishing-resistant MFA, manage DeFi approvals, and watch for address-poisoning scams. Mind taxes and reporting; in…

Why a “balanced” crypto portfolio matters in 2025 Crypto markets are structurally volatile and sensitive to macro and policy news, so risk control and diversification are as important as coin selection. Recent central-bank–sentiment research and BIS studies underscore how digital assets can react to macro communication and how user adoption tends to rise with price—useful context when sizing positions and setting…

What “fundamentals” mean in crypto Traditional equity analysis looks at earnings, cash flow, and balance sheets. In crypto, you analyze supply and issuance, token unlocks and incentives, on-chain usage and fee generation, developer traction, governance and security design, liquidity and market structure, and regulatory posture. These pillars let you compare very different altcoins on a consistent basis rather than chasing price…

Diversification is not just about owning many coins. It is the deliberate mix of exposures that behave differently across market regimes, with a rebalancing plan that keeps risk aligned with your goals. Since 2024, access has improved through spot bitcoin and ether ETFs, while global policy frameworks have advanced, giving retail investors more regulated ways to gain exposure—but risks remain…

Short-term crypto trading with leverage can magnify gains—but it also concentrates risks most beginners underestimate. The highest-impact concepts are how liquidations are triggered, how funding reduces or increases PnL over time, why cross vs. isolated margin matters, and what happens in stress events when insurance funds and ADL step in. Treat this as a risk-first handbook for retail traders. Futures,…

Momentum trading tries to ride assets that are already moving. Academic work documents robust time-series momentum across traditional futures markets and finds similar effects in cryptocurrencies, though results vary by method and sample. For example, time-series momentum was shown across 58 futures in the seminal paper by Moskowitz, Ooi, and Pedersen, while Liu & Tsyvinski report strong time-series momentum signals…

Technical analysis turns raw price and volume into structured trading decisions. In crypto’s 24/7 markets, you’ll get the most mileage from a workflow that combines pattern recognition, a small set of robust indicators, disciplined risk controls, and evidence-based validation to avoid common statistical traps. Academic work shows that certain rules can have conditional value, but results degrade without rigorous testing…

What “scalping” really means in crypto Scalping targets many tiny price moves using frequent entries and exits on liquid markets. In practice, that means seconds-to-minutes holding times and a sharp focus on execution costs and slippage. While headlines often blur “scalping” with institutional high-frequency trading, the institutional edge typically comes from ultra-low-latency infrastructure and colocation that most individuals can’t access. For…