This sharp decline is attributed to friction factors regarding cryptocurrencies from several US departments, as well as the suspicion that certain institutions may be using news to manipulate the market for short selling. 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 Position: When holding low long positions and pending orders, the proportion should not exceed 15% of the account funds. This way, even if the market shows adverse changes, the safety of the account's funds can be ensured.
Set Stop Loss: For profitable positions, a break-even stop loss should be set immediately. This way, even if the market corrects, existing profits can be preserved, preventing paper profits from turning into paper losses.
Flexibly Adjust: If the market falls below the defense point, decisively reduce the position to 10-15% of the margin for the held positions, and add to the position at lower prices to lower the average cost. Do not blindly set stop losses due to temporary being stuck, 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.