How can you manage potential losses during a crash

[Emilyp]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

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[bitllionaire]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

Yes but if the price goes down anymore then you will never feel the need to withdrawal your money and invest it anywhere else, you need to wait and should keep hope for the price increase and when the price will increase too much you can recover your lose, for that you need to be patient and wait for some good time.

[ejandjm18]

The smart thing to do is to prepare during good times for the devastating market moves that could occur, and the following three things are worth thinking about as you plan your risk management strategy: 1st, Be ready for a market crash before it happens; Investors should always have a potential crash in mind when they put together their investing strategy. 2nd, During the crash don’t do a thing; More investing mistakes happen during market crashes than at any other time. 3rd, After the crash assess the situation; After waiting an appropriate length of time to let your emotions calm down, look at how your portfolio performed and see what worked and didn't work.

[DRVX]

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

Until you sell anything, you do not lose anything. Just held the altcoins and BTC that you have already. In case, you have enough income to buy more crypto, do it, as with time, this money will be even tripled.

[justspare]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

Yes but if the price goes down anymore then you will never feel the need to withdrawal your money and invest it anywhere else, you need to wait and should keep hope for the price increase and when the price will increase too much you can recover your lose, for that you need to be patient and wait for some good time.

At that stage, the only thing left is actually patience or simply if you are holding a shit coin during those time, find a way to sell it and then get into a much better coin to at least be certain you are going to end up getting the best from the profit when the market recovers at the end of the day. It is always better to either know what to do as a trader to stop losses or to at least see how to get an upper hand in the market during times like this and in cases where I have already missed a good stop loss opportunity, I simply buy more when the market is showing sign of uptrend at a huge dip.

[DMCR lah]

Reducing total loss is helping to return your capital again, but I think it's better to hold your investment when there is a big loss on the coin you hold. Hold it back.

[crazyavdik]

Waiting is better then just nothing or panic selling in cryptos, So I think we need to do this. If you don't want wait you must be prepared that will be very hard to trade on so bearish market

[DMCR lah]

Most people complain about their capital losses. In bitcoin business, we can not be sure all the time that every investor gets, sometimes there is also a possibility of loss.

[Supercrypt]

The smart thing to do is to prepare during good times for the devastating market moves that could occur, and the following three things are worth thinking about as you plan your risk management strategy: 1st, Be ready for a market crash before it happens; Investors should always have a potential crash in mind when they put together their investing strategy. 2nd, During the crash don’t do a thing; More investing mistakes happen during market crashes than at any other time. 3rd, After the crash assess the situation; After waiting an appropriate length of time to let your emotions calm down, look at how your portfolio performed and see what worked and didn't work.

Yes, you cannot take back the losses when they are huge already but wait for another time to get the best from them eventually. One way I have gotten to minimize the whole loss is to find a very good point of entry back then, since I am at least better to know what to do now.

As long as you have some capital at hand, I do not usually waste time buying some of those coins at their bottom and then wait for the movement upward which would compensate in the long run for the losses you had quickly.

[yahamidu]

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.  

Yes, I think What you do and suggest is the best way to cover your losses, this is the system how they work on wall street as well. They buy and sell in blocks and do this while stocks in accumulated fashion every time they go up or down. It is agood way.

[crazymelons12]

Well I would say you have the point. Probability is well defined but unpredictability may sometimes rise to the point where evrything you think about will be the opposite. Patterns don't work sometimes. Try playing freebitco.in that is how unpredictable bitcoin is as I have observed.

[cheann20]

Just a hunch, but am guessing most who bought at a ATH are probably not going to be particularly skilled traders, and are almost invariably going to lose even more if they attempt this convoluted and risky strategy (and that's assuming the patterns you pitch even hold true) lol

For me if i know all alt will crash,  i sell them and buy USD, for secure my money, if it is back to normal i bought again to low price and sell them to high price, we need more wise and be a stratigic person. 

[beerlover]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

As long as you were not holding a shit coin, there is no way at some point the market would not recover anyway, the only thing you will need however is patience most especially if it is a huge loss already but if it is still a little percentage which you can still cut loss in the case where a downtrend is imminent for the market then the best thing is to go ahead and do so, and wait for the dip to get in and then get the best from the profit in the long run.

There will be no such potential losses for a long term holder which is the exact thing I am right now doing. Yes, I am still in profit when compared to my buying price levels. I bought/earned my bitcoins when it was below $500 and now also I am into ten fold profits. Being a long term holder has lots of basic advantages.

[Soneo]

If you are really smart, you are also able to set up a bot to monitor the status and buy/sell when needed. But the bot won't recognize a crash from a graduate and final fall.

I think the problem here is that not many of those who buy Bitcoin at $ 18K are really interested in trading because they are mostly in the "hawkers" category. They will definitely find it hard to watch Bitcoin every day every hour waiting for small spikes and drops. I still hope that in this quarter Bitcoin can make some excuses if it does not exceed the $ 15K level.
A good idea and I think someone can indeed use a strategy to get back what you've lost because a 'crash' happened with Bitcoin over the last few weeks.

[wuvdoll]

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

Until you sell anything, you do not lose anything. Just held the altcoins and BTC that you have already. In case, you have enough income to buy more crypto, do it, as with time, this money will be even tripled.

That is usually the idea but in the case where you will end up having your money tied down in losses for a very long time, then you have missed a chance of good buy back at the bottom. What we do not always understand though is that not everyone can trade and it makes it hard for most people to even know when they should be stopping loss at all.

Just buying back more at the bottom as there is simply no better way to do it than that. Managing potential loss is a concern only for active traders. That is the reason many people are preventing it just by holding for longer duration whereas bitcoin is always bring them excellent profits.

[Crystal24]

There's no other way to do that than selling off in order not to incur more losses.

[weblouartisan]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

In my own opinion, those loses are just your best experiences in trading which can make you become a better trader to avoid making wrong decisions in the future.

[DaftAjax]

Not every technique or pattern to every problem in any platform has to have the same formula in order to arrive in a safe solution, in actuality there are so many ways even I can't count. And it doesn't mean that it works for you will work for everyone else, don't get me wrong I know you put a lot into this and I wish you success but my point is everybody is different, sure it could guide some people, but the main problem is yet to arrive. What if some guide does not exist or does not work anymore, they will tend to be not very confident to try something else because they rely mostly in guides, so being a lone wolf might work better.

[Muzika]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

In my own opinion, those loses are just your best experiences in trading which can make you become a better trader to avoid making wrong decisions in the future.

maybe it is better if there would no loses to happen it is not impossible to do specially when you know how to deal with the market patience is must if you want to have a good profit in trading because not always that the market is at red.

[Saidmod]

This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?

In my own opinion, those loses are just your best experiences in trading which can make you become a better trader to avoid making wrong decisions in the future.

maybe it is better if there would no loses to happen it is not impossible to do specially when you know how to deal with the market patience is must if you want to have a good profit in trading because not always that the market is at red.

That is impossible, professionals cannot evade the risk of losing while they have a sudden stratedgy to minimoze the loss either by selling if they feel it will dump or using stop loss. This practices help a good trader in the event of market crash.