Overview of unwinding strategies: mainly divided into two categories

I. Active unwinding strategies

1. Decisive stop loss (cut position)

Faced with obviously wrong buying decisions, especially when chasing high and buying at the top of the market, decisive measures should be taken to stop losses in time. Although you may suffer losses in the short term, retaining financial strength is the basis for long-term profitability. There are constant market opportunities. As long as the funds are safe, there will always be a day to turn things around in the future.

2. Flexible position adjustment (currency exchange)

If the current digital currency held is weak and has a further downward trend, and another currency shows stronger potential for growth, you can consider adjusting your position. By exchanging for a more promising currency, use its profits to make up for the losses of the original currency.

3. Reverse operation (shorting)

When you are deeply trapped and cannot stop loss directly, and at the same time predict that the market or a specific currency will have a deeper decline, you can consider a shorting strategy. That is, sell the locked-in currency first, and then buy it back after the price drops further, so as to reduce the cost of holding positions.

　　2. Passive unwinding strategy

　　1. Gradually increase positions (average)

　　If the purchase price is relatively reasonable and you are optimistic about the future market, you can adopt the average strategy, that is, buy in batches when the price is adjusted, and reduce the risk by averaging the cost. But it should be noted that the funds are limited, and the opportunity to average out needs to be accurately grasped to avoid excessive dispersion.

　　2. Patiently wait (lying flat)

　　For investors with full positions and deep positions, if they can neither stop losses nor have additional funds to cover positions, the wisest choice may be to patiently wait for the market to rebound. The premise is that the funds are self-owned funds, not borrowed, and face short-term fluctuations with a calm mind and wait for the market to turn around.

　　Important tips:

　　Avoid emotional operations, such as blindly covering positions and easily cutting losses, which may aggravate losses.

　　Being stuck is not a desperate situation, but sometimes it is the starting point for nurturing great opportunities. The key is how to deal with it rationally and turn challenges into opportunities.

　　Each strategy has its applicable scenario. Investors should choose flexibly according to their own situation and market conditions, and never blindly follow the trend.$BTC $ETH $BNB