Dealing with losses, as a term in the cryptocurrency world, refers to the situation where the price of a coin rebounds to the buying price, allowing one to sell and recover funds. Learning to deal with losses is essential for true hunting; learning to recover losses is crucial for truly understanding cryptocurrency trading.

Below are methods for dealing with losses, generally divided into two types.

1. Active Recovery Strategies

1. Cutting Losses

If it's clear that the purchase was a serious mistake, especially when buying at the peak of a previous surge, one must have the determination to decisively cut losses and sell off to protect capital. There are many opportunities in the cryptocurrency market; as long as capital is not significantly damaged, it can always be earned back.

2. Switching Coins

When the coin in hand is at a loss and in a weak position, still with the possibility of further decline, if one can accurately judge that another coin has significant potential for appreciation and a stronger trend, one can decisively switch to the new coin to offset losses from the old coin.

3. Short Selling

When it is determined that the position is deeply trapped and cannot be cut, and there is further potential for a significant decline in the market or a specific coin, one can use short selling, first selling the trapped coin, and then buying it back at a lower position, effectively reducing costs.

2. Passive Recovery Strategies

1. Averaging Down

If the buying price is not high or one is firmly optimistic about the future market, averaging down techniques can be employed. However, ordinary investors can usually only withstand one or two rounds of averaging down, so timing is crucial.

2. Waiting it Out

When fully invested and deeply trapped, with no ability to cut losses or add to positions, one can only passively wait. As long as it is one's own money, not borrowed or loaned, patience is important. One must not act emotionally by carelessly abandoning all efforts, blindly adding to positions, or hastily cutting losses. Being trapped is not terrible; sometimes not being trapped means not making money, while being trapped could potentially lead to significant profits.