Almost all (good) trading advice will highlight the importance of managing risk. The reasoning behind this is that in order to make money you need money, if you have no money it can be pretty tough to profit from the markets.
With non-leveraged spot trading Bitcoin, you will never run the risk of losing all of your capital but managing risk and expectations is still paramount.
Assessing your account’s risk comes down to three main factors:
For example, if you need capital immediately from your spot account, are trading with the majority of your liquid net worth, and you stand to lose a lot if BTC moves adversely — these three factors lining up would be an example of extremely high risk.
However, if you don’t need capital immediately from your spot account, are trading spot with under 25% of your liquid net worth, but you stand to lose the ability to buy a new car you’ve been saving up for: that would be considered a situation of low risk. This is because you don’t need the capital immediately and have time on your side, and you haven’t committed a large portion of your net worth to your position as well.