What is the 1% rule in crypto?

The “1 percent rule” in crypto is an informal risk‑management guideline, not a strict law. It suggests limiting each individual trade or position to around one percent of your total portfolio or risk capital. The idea is to survive long losing streaks without being wiped out by a single bad bet. Traders adapt the percentage based on volatility, conviction, and time horizon, but the core principle is position sizing and capital preservation.