Bitcoin Forum

No one wants to hear bad news, but, when it comes to stock/currency markets, it is something unavoidable. It's also natural, since markets and economies go through cycles of boom and bust. Therefore, for every bull market that we enjoy, there is a potential for a bear skulk somewhere in the future. This is a good reason, why it’s important to have a plan in place in case of a downturn. Every investor/trader knows, that it is impossible to completely avoid the risk when investing in the markets, but fortunately, there are a few things that you can do to protect your portfolio from a market crash.

https://aix.trade/2018/01/16/protect-portfolio-market-crash/ (https://aix.trade/2018/01/16/protect-portfolio-market-crash/)

Nice article you have there bro! I love the first one the most, especially for holders. The only thing whales are always looking for in a market is panic selling and they try as much as possible to capitalize on that to make a lot of profit. I also like the part where you said it is good to be greedy when others are fearful and sure way to make profit. For crypto market investment especially, better way to play your investment is just to stay away from the news.

If you want to safeguard yourself at the time market crash then exchange your coins with USDT(Tether), it is the coin which is backed with US dollar so that price remain stable to around $1 all the time. We never see much price fluctuation in Tether, so it is the best solution to this problem.

There are several ways to protect portfolio from market crash:
1. Devide your portfolio in at least five cryptocurrencies.
2. Hold your funds and stop trading during crash or ....
3. ... don't hold and look for cryptocurrencies with little movements or ...
4. ... exchange your BTC/Altcoins into USDT during crash and buy them back later.
5. Don't watch your funds during crash. This may prevent panic sell.
6. Analyse cause of crash and search cryptocurrencies, that are not affected (I didn't find any. But maybe you have more luck :) )

Avoid that No. 5 because this is one of the factors that will really affect you to panic sell because if you do gradually check your portfolio and seeing all in reds it can really cause up panic which would really lead to sell off on loss which is a devastating decision that we would made.We should hold no matter what during a crash because it can be still considered as loss if you havent sold out your holdings.They might decrease in value but they will recover their prices. Converting into USDT isnt really a bad idea.

This is not true at all, i am holding a lot of cryptos who are under the radar right now (below 20 million dollars of marketcap) and they are giving me much more profit than bitcoin or any other altcoin.

In just a week, i made more than x5 just by using Elixir and Flixxo.

And this is just an example, holding the best ones is not always the best thing to do.

First, you are right that bearish market is undenable thing that can comes anytime without any prior notice.
 i have no good way to protect my portofolio from this but we reduce the effect by spare capital to buy back in lower price with usdt or euro.

"Stop listening to everyone and focus on what you can really control". A very good suggestion and able to spark my spirits. Meanwhile which I have controlled, is : Hold emotions, No panic, Buy as much bitcoin as possible, Hold it, hold it, and be optimistic about market development.

Another good strategy is always to have some BTC spare to buy in alts when their prices dump during these situations; can be good for getting coins cheap.

Crazy times.

-Knightly

What if my portfolio consist of cryptocurrencies that was been affected by the market crash? Should I hold still? But, I do think it will make things worst if I continue to hold as it might result into more loss. So, probably, the really good idea to do is to convert all coins into USD and wait for the market to regain conciousness in order to avoid incurring loss of value. Also, how can we analyze the cause? Is there a good source which you can provide? There are a lot of sites, news and blogs regarding cryptocurrencies and I don't know which one to believe. Lastly, if we don't monitor the market very often, how can we make our own chart which will be our actual reference for trading or holding purposes.

When the market crashes, we can't help but Hold!

You have started good topic. It is very important to understand how to protect our portfolio. Protecting portfolio can be possible only by taking calculative risk and keeping investments in so many wallets on more than two exchanges. We can divide our investments in Bitcoin and some altcoins too. Investment in only singe coin may not make us earn good profits.

The cause of this crash was most probably bad press about upcoming "bans" in Korea and China and a correction, that happens at beginning of every year. But crashes may also be caused by single cryptocurrencies, by exchangers or by criminal acts. It is important to figure out the reason of any bigger movements, because consequences by traders may differ by reasons.
Day traders need to monitor movements multiple times a day. But for longterm trades it is important to research all cryptocurrencies before investment. In my opinion there is no need, if not destructive, to watch all news and movements daily. Well established cryptocurrencies don't follow the movements of traditional markets, because their potential is still at beginning.

If you have money in an exchange, you can put a stop loss order in for that coin to cut your losses in the event of a crash. However, many of us keep most of our funds off exchanges and use offline wallets. In these cases there’s not much we can do except diversify our portfolio. But as we saw in this crash, everything dropped so there was no safe coin. The best thing in this case is hold through the dip.

The things the we needed to do every time market crash are already here and I just want to add just be more patient because this can help you to focus more on your goal instead of worrying about the market. Just hold big coins that you believe can survive even if the market crash, and have the capability to bounce back stronger.