How can you manage potential losses during a crash

[Pleione527]

There is no way to manage potential losses rather than holding and waiting till the price is reasonable enough again. At this moment the value of all cryptos fall and making panic selling will surely incurred holders too much loss. We all need to be patience and keep trusting the market. It is believe that recovery will take over soon and this crisis will end.

[1715474614]

1715474614

[1715474614]

1715474614

[1715474614]

1715474614

[francedeni]

Everytime we always check the price we tend to sell all and forget everything. But, the total lose really are huge that it's hurt our pocket. So, I manage to hold, think all will be well and price will jump high again.

[JCSHALOM]

Businesses face many risks, anf one of those is losses, therefore proper management should be a central part of any business' strategy . Management helps you to identify and address the risks facing your business and in doing so increase the likelihood of successfully achieving your businesses objectives.

Losses management process involves:

methodically identifying the  losses in your business
assessing the likelihood of an event occurring
understanding how to respond to these events
putting systems in place to deal with the consequences
monitoring the effectiveness of your losses management approaches and controls
As a result, the process of  management:

improves decision-making, planning and prioritisation
helps you allocate capital and resources more efficiently
allows you to anticipate what may go wrong, minimising the amount of firefighting you have to do or, in a worst-case scenario, preventing a disaster or serious financial loss
significantly improves the probability that you will deliver your business plan on time and to budget
management becomes even more important if your business decides to try something new, for example launch a new product or enter new markets. Competitors following you into these markets, or breakthroughs in technology which make your product redundant, are two risks you may want to consider in cases such as these.

[gambitcoin53]

i think there are no fixed pattern to use these days, the price now is highly volatile, and we are talking about on every 5 minutes basis, your pattern is good if you have lot's of funds you can afford to loose, but for some it is just not fit. the price of bitcoin these last few hours ago is jumping up and down like crazy, it is hard to establish timing based on the trend, it is so unpredictable. but good pattern though.

[alyssaxx]

In every investment not all the time we can gain profits there's also losses, with this losses we can learn from it. That's why we should invest from our extra money not from our emergency fund.
If we loose don't give up, we should study again again so that we will not face losses again in the future.

[Kakmakr]

i think there are no fixed pattern to use these days, the price now is highly volatile, and we are talking about on every 5 minutes basis, your pattern is good if you have lot's of funds you can afford to loose, but for some it is just not fit. the price of bitcoin these last few hours ago is jumping up and down like crazy, it is hard to establish timing based on the trend, it is so unpredictable. but good pattern though.

Nope, I disagree. There is a definite pattern lately. It will go down aggressively to a new low and then a correction phase starts within a margin of about $1000 from the previous low. If you have perfect timing, you can buy on the dip and make a daily profit of $1000 per coin on the correction phase.

In my opinion someone is definitely manipulating the price crash and they are making money doing this. The aggressive dip is a scare tactic to force down the price. <This increase their profits on the upswing>

[odolvlobo]

i think there are no fixed pattern to use these days, the price now is highly volatile, and we are talking about on every 5 minutes basis, your pattern is good if you have lot's of funds you can afford to loose, but for some it is just not fit. the price of bitcoin these last few hours ago is jumping up and down like crazy, it is hard to establish timing based on the trend, it is so unpredictable. but good pattern though.

Nope, I disagree. There is a definite pattern lately. It will go down aggressively to a new low and then a correction phase starts within a margin of about $1000 from the previous low. If you have perfect timing, you can buy on the dip and make a daily profit of $1000 per coin on the correction phase.

In my opinion someone is definitely manipulating the price crash and they are making money doing this. The aggressive dip is a scare tactic to force down the price. <This increase their profits on the upswing>

Do you have any evidence of manipulation, other than the patterns you claim to see (which isn't really evidence)?

[swscowods]

We actually can get advantage during this negative market condition. We can do opportunity sell, my strategy will looks like hoarding too, sell coin to fiat then wait until the peak of the crash then buy coin with all your capital. Then we can get more coin than usual, for contrarian people this condition is not so bad.

At the time of crash, the first and foremost thing which you need to do is that you have to keep your nerves under your control. After that, you need to wait of the right time to invest more money into it by buying more number of crypto coins but you need to buy the coins only when the market is at its lowest possible value. You need to do the chart analysis very much carefully so that you can predict the things well and then decide accordingly.

[Kakmakr]

i think there are no fixed pattern to use these days, the price now is highly volatile, and we are talking about on every 5 minutes basis, your pattern is good if you have lot's of funds you can afford to loose, but for some it is just not fit. the price of bitcoin these last few hours ago is jumping up and down like crazy, it is hard to establish timing based on the trend, it is so unpredictable. but good pattern though.

Nope, I disagree. There is a definite pattern lately. It will go down aggressively to a new low and then a correction phase starts within a margin of about $1000 from the previous low. If you have perfect timing, you can buy on the dip and make a daily profit of $1000 per coin on the correction phase.

In my opinion someone is definitely manipulating the price crash and they are making money doing this. The aggressive dip is a scare tactic to force down the price. <This increase their profits on the upswing>

Do you have any evidence of manipulation, other than the patterns you claim to see (which isn't really evidence)?

Never said it is a fact, my sentence started with ..." In my opinion.."

I am making an observation on what I see and once this becomes a pattern, I comment on that. Everyone has a right to their opinion. <right or wrong>

Based on my observation, some people could have regained some of their losses <+/- $2000> if they bought back at $6k+ <This is once again, just a calculated risk and this could have gone the other way around> Sometimes you just have a gut feeling, when something smells funny.

Weak hands Sell, Strong hands buy/Hodl. ^smile^

[gorodi]

To manage potential loses during a crash is to have a variety of investments so that you don't need to put all your eggs in one basket. A good financial strategy on how to diversify your earnings could eliminate the chance of total bankruptcy.

It is also very important to realize how much money you can invest not to feel you are crashed if the market fall happens. Never use over 30-35% of all your funds for trading and investments, and the loss will be minimal.

[mx667]

To manage potential loses during a crash is to have a variety of investments so that you don't need to put all your eggs in one basket. A good financial strategy on how to diversify your earnings could eliminate the chance of total bankruptcy. It is also very important to realize how much money you can invest not to feel you are crashed if the market fall happens. Never use over 30-35% of all your funds for trading and investments, and the loss will be minimal.

I do not do such thing, because all I do is investing in a long term so I do not really worry about this current price change. Actually there is no way to save profit in time like this. If you keep it from a higher price, you will lose. But if you buy and then the price of Bitcoin down, then you also lose. You have to remember this one thing: if you sell when you can not profit or lose, then you will lose and will not profit from the loss. But if you have not sold it yet, and in the time of this price drop you keep it and keep investing, you'll probably get a profit if the Bitcoin price goes up. You must know what I mean. Just have a faith that the price of Bitcoin will recover and going up above this decreasing.

[naidray]

Good idea and I think one can indeed use the strategy to gain back what has been already lost due to the 'crashes' happening with Bitcoin for the past many weeks. The thing here is that not many of those who bought Bitcoin at $18K are actually interested in trading as they are mostly in the "hodlers" category. They will surely find it difficult to be watching Bitcoin everyday every hour waiting for those little surges and dips. I am still hoping though that within this quarter Bitcoin can make some grounds if not exceeding the $15K level.

Simple! This is more like even trying to day trade anyway and there is no way for a decentralized market such as this, at a point, emotion will not step in for such individual.

For someone who is not a learned trader, which obviously may not do something like this anyway, a non-learned trader will end up fumbling up badly eventually, as this is more like trading without any serious strategy or understanding how the chart and indicator works, and only relying that every day, there will always be a margin of $500. What if it does not ?

[jakelyson]

This somehow what I am doing in the past 3 weeks with my investments but instead of doing it daily, I am dumping during the weekend when the price is at its peak, and pumping during the weekdays, mostly wednesday or thursday when the price is at its lowest.

But, this week, I think it will not work since the price starts to pump up on a weekday. Got to adjust my schedule again.

[Polipog]

In my own idea, if I'm not sure in price movement, I will better stay quietly, and post for a while and stopped investing to avoid losses of capital. In that way, we can surely evade and escape potential losses. In bitcoin business, we better used our mind widely and accept the reality of what so ever happening in the future. If we are a business minded, we can easily adopt and understand a practical situation.

[NicG13]

We all like to have a system or a silver bullet that delivers results but these markets are a lot more complicated than that. In theory, it's easy. You buy the dip and sell the bounce. But in practice, your ability to get these rights amidst tremendous tumult and complexity is close to zero and you can get it wrong very, very easily. Best to pick a low, pick solid projects and wait, adopt a longer time frame view to things.

[Sled]

I managed to not be so bothered of the crash by doing other things that i want or i really love to do and that is how i am making my attention to go to the other things and not focus in the market. I also like to go out of town and go to different beautiful places that i can enjoy and have some fun and also relax so i will not become so stressed and i am already used to this cycle because this is my way to manage my feeling about my potential losses in a crash.

[Sendah]

To manage potential loses during a crash is to have a variety of investments so that you don't need to put all your eggs in one basket. A good financial strategy on how to diversify your earnings could eliminate the chance of total bankruptcy.

It is also very important to realize how much money you can invest not to feel you are crashed if the market fall happens. Never use over 30-35% of all your funds for trading and investments, and the loss will be minimal.

Yeah that's what im always remember that not all my money is need put in trading because there is always a possibility to lose it, i just put the money that i can afford to lose.

[tuanvie]

It’s actually looks like a good pattern but somehow i find it risky. I mean, i’m not sure if i can manage to do it properly lol. It’s really hard to avoid losses in this current situation.

[portotoi]

In this business we must accept that we can experience potential losses. And your idea of pattern is a good thing to do but yet too risky because crypto currency value is so volatile. If I will lost during a crash, then i will let it happen and wait for another opportunity. But in order to avoid losses, I will not sell in a very low price my coin and just hold on for the price to up high.

[cherrymobile]

The most common answer to this question will be to hoard and to wait for the correction to reduce or elimate your potential losses. <You only lose money, when you sell at a lower price than what you bought it at, right>

My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.

What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers. <lots of mini crashes and mini corrections>

So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000. <Some people panic and sell at a loss>

My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.

Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.

Day 1   - $9000
Day 2   - $8550
Day 3   - $8100
Day 4   - $7650
Day 5   - $7200
Day 6   - $6750
Day 7   - $6300
Day 8   - $5850
Day 9   - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0

In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work.  

By being positive in different cases.There  are lots of time happens to bitcoin that it may loses or drop down. But alway think that it is normal. Dont loose hope and be more patience waitinvg for the right time.to increase.