Risk and Trading Psychology · Crypto Trading Guide

Market risk is only one way to lose access to capital. Build an operating plan for custody, venue failure and account recovery.

Map where assets and claims sit

List each exchange balance, personal wallet, lending position and collateral account. Identify the legal or technical claim behind it. A balance screen is not the same thing as direct control of an asset. Record withdrawal conditions and the consequences if the service becomes unavailable.

Ask what a reserve claim proves

A reserve snapshot can provide evidence about selected assets at a point in time. It does not automatically establish all liabilities, asset ownership restrictions, future solvency or a customer’s recovery priority. Read the scope, date and methodology. Do not equate a public wallet balance with a complete financial audit.

Separate access and transaction controls

Use strong unique credentials and appropriate multifactor protection. Restrict API permissions to what is needed and avoid withdrawal permissions for a read only analysis workflow. Confirm sensitive changes through trusted entry points. For personal custody, protect recovery material and understand the permissions being signed. A backup that cannot be safely restored is an untested assumption.

Rehearse a realistic incident

Imagine the venue holding your hedge is unavailable while the spot asset moves sharply. Record who can access accounts, what exposure remains and which actions are possible without that venue. Preserve order identifiers, transaction hashes and support records. Do not send more funds merely because an unknown message claims they are needed to unlock a withdrawal. Recovery planning should cover loss of a device, compromised credentials and service disruption without placing secrets in a shared document.

Try it yourself

A platform shows assets worth $100 million but provides no reliable liability total. Can solvency be established?

Show the worked answer

No. Assets alone do not establish whether obligations are covered or whether those assets are available to customers.

Further reading

Educational material. Examples and rates are hypothetical, not trade recommendations. Product terms, eligibility and risks vary by venue and jurisdiction.

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