What is the 1% rule in trading?

Excuse me, could you possibly clarify for me the meaning of the so-called '1% rule' in the context of trading? I've heard it mentioned frequently in the cryptocurrency and finance communities, but I'm still somewhat unclear about its precise application and significance. Could you please elaborate on its core principles, and maybe give an example or two to illustrate how it might be used in practical trading scenarios? I'm eager to understand how this rule might help me in managing my trades more effectively.