Definition ∞ Capital retention in digital asset markets signifies the ability of investors to preserve their principal investment over time. This concept involves strategies aimed at minimizing losses and safeguarding initial funds against market volatility or adverse events. It prioritizes the security of assets rather than aggressive growth.
Context ∞ News regarding capital retention often appears during periods of market uncertainty or regulatory changes within the cryptocurrency sector. Investors frequently seek assets or strategies that offer greater stability to maintain their wealth. Discussions may center on stablecoins, conservative portfolio allocations, or specific DeFi protocols designed to mitigate downside risk.