How to seize greater profits when trapped

1. Proactive Unwinding Strategies

1.1 Cut Losses

If you find that the purchase was a serious mistake, especially if you bought at the peak of a significant surge, you need to have the resolve to cut losses decisively to protect your capital. There are many opportunities in the cryptocurrency market; as long as your capital does not suffer significant losses, you can always earn it back.

1.2 Switch Coins

If the cryptocurrency in hand is underperforming and still has room to drop, and you accurately judge that another cryptocurrency has a larger upward potential and stronger momentum, you can decisively switch to the new cryptocurrency to offset losses from the old one.

1.3 Short Selling

When it is confirmed that you cannot cut losses and the market or a specific cryptocurrency has further downward potential, you can use short selling. First, sell the trapped cryptocurrency and wait to buy it back at a lower price to effectively reduce costs.

2. Passive Unwinding Strategies

2.1 Averaging Down

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

2.2 Wait It Out

When heavily trapped and unable to cut losses or add to positions, the only option is to passively wait. As long as it’s your own money, not borrowed or loaned, you can afford to wait patiently. Avoid emotional reactions like impulsively cutting losses or blindly adding to positions. Being trapped is not terrifying; sometimes, if you don’t get trapped, you won’t make money, and being trapped might actually lead to big profits. Therefore, do not simply view being trapped as a disaster; if handled appropriately, it can entirely transform into an opportunity.