Crypto trading is inherently high-risk due to extreme market volatility, which can lead to significant gains but also severe losses in a very short time. Beyond price swings, traders face risks such as exchange hacks, fraudulent projects, and liquidity issues. Effective risk management strategies are essential, including setting stop-loss orders to limit downside, diversifying across different assets to reduce exposure, and conducting thorough due diligence before investing. Staying updated on security practices and using reputable exchanges can mitigate the risk of scams and hacks. Recent bad trades often result from emotional decision-making or neglecting risk controls, underscoring the importance of discipline and a well-defined trading plan.