How to grasp greater profits while being trapped

1. Proactive Unwinding Strategies

1. Cut Losses

If you find that the purchase was a serious mistake, especially if bought at the peak of a previous surge, you must have the determination to cut losses decisively and promptly to ensure the safety of your funds. There are many opportunities in the crypto market; as long as your funds do not suffer significant losses, you can always earn them back.

2. Swap Coins

When the currency you hold is trapped and in a weak position, still has room to fall, if you accurately judge that another currency has greater potential for future growth and a stronger trend, you can decisively swap coins to offset the losses of the old currency with the profits from the new currency.

3. Short Selling

When it is confirmed that you are deeply trapped and cannot cut losses, and the overall market or a certain currency has further room to fall, you can use short selling, first selling the trapped currency and then buying it back at a lower position to effectively reduce costs.

2. Passive Unwinding Strategies

1. Average Down

If the purchase price is not high or if you are firmly optimistic about the future market, you can use the averaging down technique. However, ordinary investors can usually only withstand one or two rounds of averaging down, so the timing for averaging down is crucial.

2. Wait It Out

When fully invested and deeply trapped, with no ability to cut losses and no funds to average down, the only option is to passively wait. As long as it's your own money and not borrowed, you can afford to be patient. Do not act emotionally by giving up, blindly averaging down, or carelessly cutting losses. Being trapped is not terrifying; sometimes, not being trapped means not making money, and being trapped may actually lead to big profits. Therefore, do not simply view being trapped as a disaster; if handled properly, it can completely turn into an opportunity.