Bitcoin Forum

whether you have a backup plan if you are involved in trade issues, such as significant price reductions or down too far, and there are two options that exist in your view between holding or selling them, each having different risks, holding back and expecting prices to back to normal but I think it will take a long time or sell it and accept the loss and then buy it back with the sales you have generated.
maybe you some better advice you can give me.
i appreciate everyone's opinion.

Trading is associated with such kind of risks. One must understand that these risks are sure to accompany any kind of trading. So it's always advised to embrace *patience* while trading.
So coming to your question, it really is a subjective decision. Because it varies from person to person and situation to situation. There are some traders who can wait till they get sufficient profits in terms of price rise. And then there are certain others who are quite impatient and start selling off their holdings as and when they see a minimal price reduction because they are not willing to take up the risks.
So if you have some fixed source of income, i would suggest the first optiom that is waiting for the price hike. But if you are short of funds you cannot manage to block your funds, you ultimately have to sell the holdings and bear losses.

of course wait, if you have enough funds to maintain your life style and if you believe your crypto assets will go up some time in the future or otherwise suffer losses and fix them.

Patience is the key in the most cases when the price starts to fall down. In most cases, the chaos phase in the market ends pretty quickly and the patient ones investors are actually happy afterward after they had realized that their patience was the key to their success. There are other cases when some of the altcoins are starting to fall and the demand for them is dropping off significantly and if the traders ain't educated enough to run from the specific crypto coin they end up with a loss. Education and researching about your portfolio is the key to success along with the patience which must be used in some cases. My backup plan is determined by the circumstances that are appearing at the given moment. The real answer is that you can not use the same backup plans with every crypto.

If you are sensible and only invest an amount you can afford to lose then your real life circumstances shouldn't be greatly influenced by this decision which makes it much easier.

If you expect that the price will drop further then sell your coins and try to buy back later.

If you think the bottom is close and they'll recover soon then hold on to them. It's really quite simple.

There is no back up plan any where just some random decision that needs to be taken whether its going to be worth it or not. Its after the decision is taken then you wait to know whether its the right one or not. Although, decision taking process in trading is not something that straight forward as several things have to be put into consideration but the moment you have the feeling that you can win at all times, you are likely to make such decision easily and timely at that.

We cannot always have a back up plan, in trading each decision takes risk and it is up to you whether you will cut your loss or continue hoping that it will rise and kickback. The only thing that is matter is that your decision is being made by random instead you need to think through and start reanalyzing things.

There is no need of back up plan as long as you are holding it for long time and selling only when the prices are more than your buy price. It is obvious thing that if you want make good fortune and if you are planning to hold then you should really hold it until it gets spiked. There is no need to sell before you hit the exit point for your trade. If you think that your coin is ogling down in the prices then you should check twice what is going on with the project development. If there is unusual activity then you dont have to be panic about it. If you are having good time with the project then just make it happening trade ever. :D

Trading needs tons of confidence to deal with this kind of decision when the time comes that price flow is unexpected to occur throughout our plans and strategy, you must gain confidence on a specific coin in order to hold it tight with a smile on your face and you know everything is fine and I believe this coin will bounce back because I know this coin has a great foundation, potential, usage, long-term, authenticity, decent and well-known team as well as established supporters and community, otherwise the odds of holding useless coin is very high and more likely that it's just only a short term investment.

it depends what coin I have because not all altcoin have a good potential to increasing their value but when I have bitcoin or ETH of course I will hold until the market recovered. bitcoin and eth are very promising to long term investment.

I will not called it as backup plan but rather another strategy in case my desire thing isn't happened.

Before doing such trades, not just plan for attack but plan also for other things like listing "what if's". In that way, if ever one of those "what if's" happened, there are some moves on how to deal with that current problem. Actually different trader have different way so the strategy is vary from different people.

I really think you need to enter a trade with a plan made. When I say a plan I mean that you must decide what you entry level is, what your stop loss is, and what is your exit plan as well (talking about profit here, and loss on the stop loss). Once you made these decisions, you should follow them, and commit to them during a month or something like that, to see if what you are doing works. It's very easy to make the mistake of changing your mind during a trade, specially when you are losing money, but if you keep changing you will never know if your plan is good for the long term.

Actually those who are in the trading field for a long term would be investing in coins after an analysis and so they usually prefer to hold their coins until market retains.Well it depends upon the coin which we invest whether to hold or sell during price dips.If it seems that we have invested in a coin not seem to have potential of retaining back,then it would be better to sell it and minimise the losses.

I have to say it is a function of the coins ability to come back and maybe make profit. For me, I won't keep a coin that is not showing a sign of progress for a year.  I will sell the coin if it enters the entrying price and I will still sell at lost if the coin decides to give me sleepless night .

For me crypto trade is something that is challenging and fun we must be ready to face any upcoming issues including the problem as told by op.
If I'm faced with such a situation then I'll keep him waiting for the normal price to return and if I've the money then I will buy it back that is the only way to avoid the loss.

Of course you need some backup plan when you trade, the market is too volatile so there will be unexpected event, usually I set a lost limit, if the coin reach that price then I will sell and look for another coin to trade, I dont want to stuck too long because some alt coin wont recover and stuck too long with the hopeless  coin will make me lose profit

I would accept a loss of less than 10% of my investment, otherwise I would not sell until I recovered what I lost.

there IS a backup plan and it is called stop loss. it can be placed automatically on some exchanges that have that option. it is basically a price or a percentage that you have in mind that is your "tolerance" for a loss if price reaches that lever in case of a fall for example, you sell there to prevent further losses.

now in case you don't have access to such options or didn't use that, the option is to analyze the market and try to figure out where the price is at. is it the bottom? on the way to the bottom? on a dead cat bounce? or a recovery? do that and the next movement is going to be pretty obvious but the analysis is the hard part.

this is an important and must-have trader faced in such situations and of course a trader must have the intelligence to achieve the best profit in the crypto market and if you can see it is actually a distinct advantage for small medium traders. Because of such situations the price is very predictable. and one strategy you have to do is put the network at a low purchase price and the selling price is slightly above the purchase price then the profit will be good and you can do it continuously every hour.

There is no specific backup plan if I face a trade problem, if can not wait to wait for a long time to get a profit and be able to avoid losses, you can trade short-term to get a little profit, by buying at a low price and selling it a bit above the purchase price without having to wait for the price to soar. this may be the best way to do in short-term trading without having to wait long to make a profit.

In trading, we do not involve only one coin as a mainstay. to keep things as you mentioned. Because in terms of trade will definitely face this kind of thing. Keep in mind, in terms of trading not only rely on his own ability, because there are important things you should have, that is patience. So when problems like this we face, we can hold it, wait until the price recovers. because we can still run trading on other coins.

Tradinv with downtrend in cryptocurrency is always difficult an dits hard to make decision since we are worry with our capital.
All the decision is not always the same though its the same downtrend because there is very rapidly downtrend and normal downtrend.
For normal downtrend, holding and hope the price back is better rather than sell it. And also the opposite.

Personally, I have one tokens whose price magically dropped and I quickly lost $1K. Its not that much, but I have work hard for that money and its seems I made the wrong made here. However, I just decided to give it more time so I will hodl because I don't want to accept the loss and I still believe that it can co bigger in the next couple of month.

The only advise I can give to you is to just waited it out for a few months and see how it goes. Another option that I see is that you sell today accept the loss then re-invest it on other coins and see if you can recover.

Again, my case is different because I still see bigger things from my investments that's why I decided to hold up to now. Otherwise I would just dump it today and put it on other coins.

First of all,trade what you're willing to lose,so you don't have a hard time to decide between sell or hold.For me if i gotten in such situation i prefer to hold and wait,because you don't know what will happen,except if you're holding a bag of shitcoin,just cutloss and move with a new good coin.

In most cases, the price of a coin will eventually go up. It's just a matter of when and waiting for the right time. There times however when a coin totally dies and this is if the coin has totally devalued and is no longer of used. If this were the case, then it would be time to accept and cut losses. There are tell tale signs when a coin is dying. But if the coin were simply experiencing a dip, then you should simply hold on it until the price goes up again. The only back up plan you can have is to buy several coins and diversify your portfolio so that you don't lose once one coin devalues.

If such situation is happen to myself , surely I will hold my bitcoin.I had a habit of investing the independent money in trading.So if the price of bitcoin is reach to 100$ now means,I don't boughter at all.Because I had buying the bitcoin for my future ,I don't sell the valuable bitcoin at low price.

that is the risk of trading and that risk is even higher in crypto , because out of nowhere anything can happen. but there are some things you can do to reduce the risk , when i make a certain amount i just cash some out . i think when you really understand how risky this is and you take some safety measures you should be good either way.

Every investment always have a risk, we don't know what will be happened to it. But in bitcoin, having unstable price, you/we prepared to hold than to sell. We know that bitcoin will not drop its price to very lowest or let say at Zero price. Holding bitcoin just like saving our money in long Term.