How can you manage potential losses during a crash

[korchenkov]

Someone used API for Poloniex for example? PHP, Pyton or Node.js. It can manage potential losses during a crash automaticaly.

[1714756504]

1714756504

[manismanja]

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

[Bezobraznike]

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.  

   This is not managing potential losses, this is risking to make some
money casue you want to cover your losses. In 3 weeks you can lose
everything you have, like a gambler who say just one more spin and
I will win back everything I lost.
   Your strategy can work, or not, I can not judge that. I am saying that
risking is not always a smart move. During a crash you can wait to pass,
or to get out, wait to touch bottom and buy again. Depends do you wish
to save money, or to have more Bitcoins.

[vincentallstar]

A pretty bold idea but it could work if you have that much money to invest with and you have a strong emotional capability to handle rumors or news about the coin you invested with. What if let's say for example that the price of a specific coin decrease by 500$, then you invested again your money, and after a few hours or days, it started falling again? You can't keep investing in something unsure unless you are really confident about it and also if you are in a tight budget, you can't prioritize investing to this without gaining some returns first.

[BlackBoxRecords]

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.  

Oh, well, nice idea but terribly wrong. Basically you are saying that you can buy at mini-dips, the problem is obviously that you don't know when a dip has finished. If you want to avoid losses just sell when it has doubled your buying price instead of staying there hodling like an ass.

[Kim Ji Won]

A pretty bold idea but it could work have that much money to invest with and you have a strong emotional capability to handle rumors or news about the coin you invested with. What if let's say for example that the price of a specific coin decrease by 500$, then you invested again your money, and after a few hours or days, it started falling again? You can't keep investing in something unsure unless you are really confident about it and also if you are in a tight budget, you can't prioritize investing to this without gaining som returns first.

Also, this technique requires you to be very active in monitoring the price movement of the coin you invested on. So, unless you can meet these requirements, you should think twice before doing the same thing.
Nonetheless, it is a great strategy and this could work on Bitcoin and Ethereum where you can be sure that its price will recover despite the dips that it is having.

[speem28]

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.  

Oh, well, nice idea but terribly wrong. Basically you are saying that you can buy at mini-dips, the problem is obviously that you don't know when a dip has finished. If you want to avoid losses just sell when it has doubled your buying price instead of staying there hodling like an ass.

It doesn't really matter even though you don't know when the dip will end or start recovering, what's important is that you saw a dip, and you take this chance to add more to your initial investment and if it keeps going down, you can invest more considering you have the means to do so.

Also, waiting for your coin to double its price before selling like you said, is also the same as holding. You just don't seem to contemplate the difference about what you are saying.

[boonsterx]

For coins with potential losses, the easier way is to hold on to them and calm them down.

I think in order not to lose your cool during a crash and panic sell your tokens, we should not loan any money

to buy any coins in the first place. By playing with the money that belongs to us and not loaned through mortgage of our homes,

we will not panic sell and will be able to handle any potential losses.

And in terms of buying, nothing beats buying when everyone is panicking.

[amaydel]

I think the best way of managing losses during crash/correction is not selling at all. I am not really good in numbers but HODLing is what i really have in my mind in situations like that.

[trickyriky]

I see you have done the greatest research, and probably you know how to manage your loss during the crash. For me the best things when the market falls are not to let myself selling the coins and keep them.

[nelmari]

I think there is a huge potential in this kind of strategy but not a lot of people can follow this trail because a lot could happen in just a couple of days. But I think this is really a great way too to cover up your losses. And most people would always want the easier way, I'd be a hypocrite not to admit that because I was like that before and the reason why I changed to long term investments instead.

[Vladv26]

You cant know what is going to happen during this 3 weeks that you say it is possible to recover any loses. Lets say you buy when the price is 8500$ and you sell them at 9000$. What if the price continues to go up and it goes up to 18.000$(your example of first price they bought bitcoin)? They remain with those 9000$ in the wallet when they could simply wait and recover all the loses in a few months. You strategy is not bad because I have seen that what you are saying is true and the price goes down with 500$ then it goes up again with 500$. But you got to be smart and know when to stop because as I said the price could go up and dont stop and you remain with your Fiat.

[tech72]

I am pretty lazy, so what I do is during crash I sell altcoins and hold Bitcoin, and whenever I see that Bitcoin might rise I again but altcoins at low and hold my most bitcoin.

[Improperstammer]

the best way to manage loss is to have a cut loss / sell plan before a crash actually happens.  Selling immediately to manage capital is way better than holding and watching your portfolio go bloody.

[JL421]

I don't do anything whenever there is a fall in price I am holding my bitcoin for more than 6 months now in my wallet I have seen the price change a lot in these months but I kept patience and was always trying to control myself on not to make a stupid move till now it is working for me

[AjithBtc]

I don't do anything whenever there is a fall in price I am holding my bitcoin for more than 6 months now in my wallet I have seen the price change a lot in these months but I kept patience and was always trying to control myself on not to make a stupid move till now it is working for me

What's been mentioned is the best any of the user could follow to make sure that they won't meet losses. Here exceptional users will be there, who doesn't have the mind to sell. But, due to emergency necessity sells even at the drop. Having patience and just enjoy having the bitcoins in the wallet is the best to overcome losses.

[el kaka22]

There is no reason to believe that this pattern that you claim to see will continue. It is a bad idea to base an investment strategy on it.

Not really. It is an established investment strategy to follow, in a highly volatile market with no real up/down trend. If your view is that the price is going to crash violently, or going to shoot up rapidly, it will not work. But in current volatile markets, this is a good strategy to follow. Most traders use it even in equity markets, while dealing with volatile stocks.

It is a good strategy but it also requires being extremely careful as the market can decide to turn anytime it wants which may end up not being in your favor unless you are able to read such situations and make decisions based on them anyway. For a common man, this may be a crazy one to do as they can even end up losing more in this case if they cannot really detect a bull trend or best time to sell and prefer just looking at the $500 margin alone.

What you do and suggest is the best way to cover up your losses, this is the system how they work in wall street too. They are buying and selling in blocks and do this while the stocks are in  accumulation mode each time they rise or fall.

This is not wall street bro! This is crypto market, a non-controlled market, so I would not want to bring in the ideology of wall street which is why it is crazy sometimes how even indicators end up giving you the wrong signals, just because everything is centered on huge speculation with a lot of FUD. Even if one is to try this strategy, it is better to be extremely careful doing it while understanding the huge risk involved.

[Kakmakr]

A lot of people seem to think that it is a better strategy to just wait for the price to reach your buying price and then to sell. I am not the kind of person that watch the grass grow. I am a risk taker and Bitcoin is a high risk investment. I also want to take control of a situation, so I like to manage the risk. <if possible>

In any given day, the price of bitcoins goes up and down and I want to jump on that opportunity to chip away at the gap between my potential loss I could have made or the reduction of that loss that I manage with day trading. In any event, it is still a waiting game. <You either wait for the $19k or for the little increase from the price you have bought, when you day trade>

[prtty2gal2]

Disclaimer : I do not follow this strategy with credit, but rather with disposable savings. I would not recommend this strategy for people who are funding their Bitcoin investment with credit.

It is a very bad idea to fund any investment with credit and any other form of debt. Bitcoin is a very high risk investment and this strategy fall in the same category.

DO NOT fund your Bitcoin investment strategy with DEBT!

We can't actually blame the people who'll loan to others just to invest in bitcoin now because the price tho is really tempting to buy and I guess no one wants to be left out before it goes to the moon again. However, when we loan some money make sure you'll return it in time and of course don't make it a habit,

That is the actual point. There are two sides of coin, a bright one and a dark one. Bitcoins are showing both right now. One side, you are seeing bitcoins as seller who have bought bitcoin at some higher prices and now you are wishing bitcoins to come back again at high altitude. There is second scene where buyers are so happy to get bitcoins at such cheap price, they want price to go down more.

[Shanmatthew]

The best way to manage losses is to find and discover the reason why it happen, and overcome it or better, don't let it happen again by thinking of other way for the betterment of your profits.