Money management. Perhaps the most important element of trading is capital preservation. Before undertaking to trade Bitcoin, consider how much money you can afford to lose before your current lifestyle becomes unaffordable. This will allow you to better determine your “pain point,” or how much wealth you’re willing to risk losing. Never commit any more than this sum to your trading account. Of this trading capital, never risk more than 5% on a single trade. Neophyte traders should not risk more than 1%. If your trading is successful, the size of each trade in absolute terms steadily grows as your trading account swells. If unsuccessful, at least losses are kept to a minimum, which allows time to adjust your trading plan.