The Differences Between a Correction and a Bitcoin Crash

Bitcoin correction:

1. Definition: Temporary decrease of 10-20% after a significant increase.

2. Causes: Selling for profit, negative news, market adjustments.

3. Duration: From a few days to a few weeks.

4. Types: Technical (technical factors), fundamental (news, regulations).

5. Behavior: Stay calm, avoid impulse selling, consider buying at a lower price.

The Bitcoin Crash:

1. Definition: Sudden decline of more than 20-30% in a short time.

2. Causes: Market panic, drastic regulations, massive selling.

3. Duration: From several months to years for recovery.

4. Behavior: Avoid impulsive decisions, analyze the market, keep a long-term perspective.

Recommended Behavior:

1. Stay Informed: Understand the differences and follow the news.

2. Long Term Strategy: Maintain a long term approach.

3. Diversification: Reduce risk by diversifying your portfolio.

4. Risk Management: Use risk management techniques.

5. Financial Counseling: Consult a financial counselor.