Introducing crypto into a retirement account requires more careful risk management than in a speculative account. Because retirement money is meant for long-haul use, you can’t afford major mistakes. The structural playbook at Crypto Inside a Retirement Plan: Getting the Structure Right helps ensure you don’t build a house on shaky ground.
Core Risk Management Strategies
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Position caps
Limit how much crypto you’ll ever hold relative to total portfolio. -
Staged deployment
Don’t invest full allocation at once—spread it across many tranches over time. -
Stop-loss or partial exit strategies
Predetermine triggers where you’ll take some profits or cut losses. -
Diversification within crypto
Rather than focusing on one coin, consider a small basket (if your custodian permits). -
Stress testing
Model extreme scenarios—market crashes, exchange outages, forks—and ask: would your structure survive? -
Emergency liquidity
Always make sure a portion of your portfolio remains in highly liquid, low-volatility assets.
By integrating such techniques into the system conceived in Crypto Inside a Retirement Plan: Getting the Structure Right, you mitigate downside while preserving upside access.