Bitcoin risk management guide
This guide describes risk frameworks for learning. It is not a recommendation to buy,
sell, or hold Bitcoin or any asset.
Why BTC risk is different from "number go up"
Bitcoin often anchors crypto portfolios — but BTC still draws down 50–80% in bear cycles. Risk management means surviving those drawdowns without forced selling, not predicting the bottom.
Core risk levers
- Position size — What % of net worth is in BTC? Many frameworks cap single-asset exposure; see concentration risk.
- Stablecoin buffer — Dry powder for planned entries and psychological stability. Stablecoin buffer guide.
- Volatility regime — Pair BTC moves with market health and Fear & Greed for context, not timing.
- Correlation with alts — When BTC dominance rises, alt books often underperform; know your combined exposure.
Monthly BTC review (20 minutes)
- Check BTC % of total portfolio (spot + Earn + futures)
- Read health score and concentration breakdown
- Note unrealized drawdown vs your written plan
- Confirm API keys are still read-only and IP-restricted if possible
- Log one sentence: hold, trim, or add — only if your plan already says so
Common mistakes
Treating DCA as "no risk management," ignoring Earn balances when sizing BTC, and adding leverage after green weeks. Smitvi's dashboard surfaces BTC weight and market regime side by side — connect read-only keys for a live view.
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One email per week with macro context and links to our free tools — not buy/sell calls.
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