The 1% Rule refers to an investment strategy where individuals risk only 1% of their total portfolio on a single trade or investment. This approach aims to minimize losses while allowing for significant growth potential.For example, if your total portfolio is worth $10,000, you would only risk $100 on any one transaction. This helps to protect your capital and ensures that a few poor decisions won’t drastically impact your overall assets.Adhering to the 1% Rule encourages disciplined trading and long-term thinking. By limiting risk, investors can remain in the game longer and increase their chances of recovery from losses. This strategy is particularly relevant given the often volatile nature of digital assets, where price swings can be significant.Overall, the 1% Rule fosters a balanced approach to investing, promoting risk management while still allowing for opportunities to take advantage of market movements.