How can you manage potential losses during a crash

[loveinberlin]

I have never thought about the potential losses during a crash. As for me, this is not likely to happen as I stick to the long-term hold strategy. I think that you need to be good at math and different calculations. You need to know how the system works

[1714752285]

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[1714752285]

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[1714752285]

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[1714752285]

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[1714752285]

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[1714752285]

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[MiXxe]

Actually this is what you call correct budgeting. When you invest and plan how much to sell your coins, consider that there may be times for you to wait so you have to include that in your budget so you won't feel the losses when it's crash and you are waiting for another time again to sell your cryptocoins. Preparation is still the best weapon. Learn to budget.

[Cynooza]

There is no particular answer for that. Diversify. If you can afford it, don't store everything in crypto, buy some gold or reliable real estate.

[abas_ir]

I have never thought about the potential losses during a crash. As for me, this is not likely to happen as I stick to the long-term hold strategy. I think that you need to be good at math and different calculations. You need to know how the system works

long time strategy need big self confidence.without this aspect, while market crash we will being panic and soll all asset  that we have.but if we have decided about this strategy it sure that we have main reason.

[ronaldo40]

I have never thought about the potential losses during a crash. As for me, this is not likely to happen as I stick to the long-term hold strategy. I think that you need to be good at math and different calculations. You need to know how the system works

long time strategy need big self confidence.without this aspect, while market crash we will being panic and soll all asset  that we have.but if we have decided about this strategy it sure that we have main reason.

hold indeed has always been my choice, because if I look at the history of prices, in the end, the price will be back on the rise. or in another way, I would buy in the dip to recover the losses.

[trako]

The decline is already clear within a week. I think it's enough to follow a week. It makes sense to sell later. You also need to monitor the falling spots. It makes sense to buy again at a value below what you sell at this point. There is no place to fall after this point and the tendency to rise will begin.

[xvids]

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.  

I have done this before with my investment in alts,
So far when I manage to gain some profit from this and if I choose to hold my alt-coin it would end up the other way,
When I see that my alt-coin was playing with 50 sats fluctuation everyday I decide to go in and sell it then set a buy order with less than 50 sats I manage to earn about $30-60 per day back then .
And luckily when the last day of my trade I predicted it wrong it didn't go up to the price that I have set and because of that I need to cut loss and it turns out to be a good idea now that alt-coin was way more lower than what I expected.

[South Park]

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 just basically what traders already do, but as we now the problem is that it is impossible for everyone to be a winner, when you trade or invest in anything somebody has to lose money for someone else to earn it, doing that strategy as you suggest you will need 21 straight days of significant profits to break even and while that sounds easy it is not.

[queenlaurel]

During a crash is a bad time to sell i believe because you might sell it way cheaper than the amount you invested. How to handle it is to wait a bit longer and listen to news of it coming back up.

[bib24]

During a crash its better to just hold your coins and wait. You might suffer a great loss if you panic and sell your coins for a very cheap price.

[VentureHero]

For sure you shouldn't sell if it's crashing, unless you spot some opportunities able to cover your actual loss.

[Johnyz]

There is no particular answer for that. Diversify. If you can afford it, don't store everything in crypto, buy some gold or reliable real estate.

Diversification can be a good option for a dumping market, its not a total cash and better to called as a correction. Buy at the lower price and sold it with profit, that's how you can survive in a dump market or if you have coins already better to just hold and be back when bear market is done.

[Uno17]

That is why it is very important to have back up accounts to be placed in other investment type, that in case one crashes, there is a back up placement to save the lose,and most of all the emotional readiness, is the moat important that you are prepared in case bad scenario like crash happens, that you are ready to accept any situations either good and bad. In other word, knows to gamble

[Dreambigacm]

Your strategy can be nice but this is mostly scheme for the professional traders, for a newbies or people that do not have that much experience my suggestion would be to work more with USDT tether so when crash will come changing the money to tether is a nice option tho

[Tory-Tory]

I think that the only correct solution that will help to save money during the fall of prices is using the stop loss. Averaging is not the best solution. If you constantly use averaging then someday the money will run out.

[dreico]

you need to be prepared for such an event and have a plan to eliminate such losses, and such risks in the world are crypto

[boyz97]

I think that the only correct solution that will help to save money during the fall of prices is using the stop loss. Averaging is not the best solution. If you constantly use averaging then someday the money will run out.

thats good risk management.although some people said if we dont sell our asset, it will not make it loss.but our emotion are not ready to face price drop sharply.and cut loss is best choice.

[rightway00372018]

you need to be prepared for such an event and have a plan to eliminate such losses, and such risks in the world are crypto

Yes before I started investing in cryptocurrency i have already created plans just incase the crypto i invested will crash unpredictively because inevsting without plans can make us panic and may be lead us to potential losses of our investment.

[Rufsilf]

I just don't mind it, i am more into long term holding for a good coin rather than a quick profit from their market, if there will be a crash in the market then i will just hold it and accept the possible scenario that could happen so i will be ready and i will not cry like a baby when i experienced huge losses.

[ceylan]

When it comes to crypto Crashes ...  best thing is holding & Stay in USDT .... but personally i don't care about BTC Crashes because I'm a long term investor .. i just hold it and sell when it goes up