This recent crash is attributed to several friction factors regarding cryptocurrencies from various US departments, and there may also be suspicions that certain institutions manipulated the market to short-sell. At such a crucial moment in the market, investors need to remain calm and rational. The following suggestions may provide some insights for investors:
Control positions: When holding low long positions and placing orders, the ratio should not exceed 15% of the account funds. This way, even if the market experiences adverse changes, the safety of the account funds can be ensured.
Set stop-loss: For positions with floating profits, a stop-loss should be immediately set to preserve capital. This way, even if the market corrects, existing profits can be retained, preventing floating profits from turning into floating losses.
Flexibly adjust: If the market falls below the defense point, decisively reduce positions to 10-15% of the margin for the existing holdings, and add to positions at lower prices to reduce the average cost. Do not blindly stop-loss due to temporary losses, as this often leads to missing better investment opportunities.
Looking back at the past few declines of Bitcoin, each has been accompanied by market panic and investor skepticism.
