Derivatives & Risk

What is position sizing in crypto investing?

Position sizing is deciding how much capital to allocate to a single holding relative to your total portfolio, so that no one position can dominate your outcomes. It is a core risk-management discipline: a smaller allocation to a volatile asset limits how much a sharp move affects the whole. For example, capping any single crypto holding at 5 percent of a portfolio contains the impact of that holding falling sharply. Sound sizing manages exposure but does not remove risk or assure any particular result. It is about proportion, not prediction.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.