#MarketDownturn As you have seen in the past week, also starting from August 2024, we have seen a sharp decline in prices from the crypto market, including the stock market. What we are worried about now is the downturn in the crypto trading market.
I am not an expert in any field, so I have no advice for you at this time, but I still want to share my own views, hoping to help everyone reading have a more positive view.
Reasons for the market decline in the past week
1. Risk sentiment: The cryptocurrency market is being sold, reflecting the weak light of the US stock market. In just the past 24 hours, the US stock market has lost up to $ 1.1 billion. The S&P 500 and Nasdaq also fell to multi-week lows, with the S&P 500 recording a daily loss of up to 2%. The rise in the value of technologies has made this very volatile when there is a sales lead of technologies.
2. US economic news: The number of unemployment benefits applications in the US increased by 235,000 in the week ending July 20, according to the US Department of Labor. Although this figure is lower than the initial estimate of 238,000 and lower than the previous week's figure of 245,000, the market is still worried about the impact of this situation on the Federal Reserve Bank's monetary policy. Investors are less expecting a FOMC rate cut this month. Instead, the consultant predicts that there could be two or more rate cuts by the end of the year.
3. Ethereum withdrawals: The newly launched Ethereum transactions in the US recorded withdrawals on the second transaction with a total withdrawal value of $ 133.3 million. At the same time, Grayscale Ethereum Trust (ETHE) also recorded a strong withdrawal with a withdrawal amount of up to 326.9 million USD.
Here are some strategies you can consider during the crypto market downturn:
1.Stay informed: Make sure you understand the crypto projects you are investing in. Be well informed about the technology, potential and foundation of each project.
2.Diversify your investments: Divide your investments into different cryptocurrencies to minimize risks. Don't put everything in one ball.
3.Stay informed: Keep track of events and changes in the market. This helps you make decisions based on the latest information.
4. Risk Management: Put a certain percentage of assets into crypto and follow the principle of “don’t put more than you can afford to lose” (don’t cut the SPOT investment account error to participate in Margin or Futures right now)
5. Learn about margin and futures trading: If you participate in trap trading or futures, learn how they work and the risks involved. I have shared an article on how to handle risks when participating in the Futures market before.
6. Blockchain network form: Master the knowledge of blockchain networks such as Bitcoin, Ethereum, Solana, and Cardano. This helps you evaluate projects based on technology and potential.
What will I do during the period of supposed crypto market recession?
As a consultant like you, with the least capital, I am always careful in every investment from Spot to Margin and Futures to minimize the risk for me.
During this downturn, I will still keep my money in the SPOT market, temporarily stay out of the margin market and Futures, I also suffered a lot of losses from the Futures market last week because of my wrong assessment.
And all in this period I still keep my money in the Spot market and buy more even though the price is still falling.
I am not too worried when the crypto market fell last week, because if it falls, it will increase, if you have a losing mentality and try to rush into the margin market or futures to remove or cut the error in the Spot market, it is an unsafe decision.
If you are like me, keep your investment money in the SPOT market and can buy more when the market falls, never give up and cut the error in the SPOT market, unless the crypto project you are participating in has a family foundation of bankruptcy or fraud, then you can sell to solve the error immediately.
Keep your invested cryptocurrency in Spot wallet, you can take out some other money to participate in the side market or Futures and remember to manage the risk by placing TL/SL orders.
The market will go down and up again, those who hold cryptocurrency will always be the winners if they have not sold (If they have not sold, they have not made a mistake).
Don't worry too much about the decline of cryptocurrency in the past week, review the previous years, each year there will be strong increases and decreases that can help you reduce losses and sell your investment account.
Now, I am still optimistic about the amount of money I have invested and am holding even though I have recently lost other mistakes from the Futures market. Currently, I am going to have a cup of coffee to relax and wait for the storm to pass. Congratulations on your investment results.