Digital assets such as cryptocurrencies and blockchain-based tokens have become a key concept in the financial world in recent years. Private investors and large corporations are interested in them due to their potential for high returns. However, this market remains highly risky, which makes the issue of risk management particularly relevant. In this article, let’s look at the main approaches to risk mitigation when investing in digital assets. Technical analysis helps investors make informed decisions based on historical data about the price and trading volume of an asset. While virtual assets are known for their high volatility, TA allows for the identification of trends, support and resistance levels, which helps to better select entry and exit points. Digital assets require special attention to security. The main risks associated with holding cryptocurrencies include theft through hacker attacks, loss of wallet access and scams. Digital assets are increasingly coming under regulatory scrutiny. For example, many countries are developing regulations for cryptocurrencies and blockchain projects. Investors should keep an eye on regulatory changes in the jurisdiction where they are located so they don’t run into problems in the future. Some countries may impose taxation on digital assets or tighten regulations for cryptocurrency exchanges and wallets, which could affect liquidity and access to capital. Investing in digital assets tends to involve high volatility, which can cause stress and emotional decisions. Therefore, mental toughness and having a clear investment plan is important. Short-term price fluctuations should not affect long-term goals, and panic sell-offs often lead to losses. Investors with a long-term strategy focus on the development of the industry as a whole, rather than on instantaneous price movements. By sticking to your chosen strategy and adjusting it as needed, you can reduce the likelihood of making emotional decisions. Digital assets are extremely sensitive to news and world events. Regulatory announcements, news of hacking attacks on exchanges, major deals and project partnerships can significantly affect the price of assets. Regular monitoring of such news allows you to make decisions to adjust your portfolio according to current events. Investments in digital assets do not exist in a vacuum – they also depend on the macroeconomic environment. For example, rising interest rates in major economies or changes in international trade can affect the overall appetite for risk assets, including cryptocurrencies. It is important for investors to consider macroeconomic trends, such as inflation, exchange rates, and countries’ financial policies, and adjust their strategies based on economic conditions.