People hate when they wake up and realize that they have lost some percentages in their saved assets. Many I know just complains of the fact that they have lost some money, complains but don't do anything about it. It's nothing wrong to complain, no one wants to lose money. It's the reality you have to live in if you're not doing willing do to anything so change the odds.
I will go thru a couple of things I do when I see the market crash my advantages of a thriving market with a good health.
Don't Complain, Do Something About It Otherwise Live With It.
The first step is to change the attitude you have against losing. Losing is often an opportunity to learn more and perhaps even gain some in the end of the journey. If you go in with a negative attitude towards you're trading, placements of assets, research and about everything that's about money and profit you're in deep water. Switch the attitude to start with, a lot of research shows that your attitude towards things partly determines the outcome. An attitude that's bad will affect may things, your consequence-based thinking is one of them.
We take a day-trader that's bored of life and always thinks his trades go bad and somehow wrong, he is very more likely to do hasty decisions and make a loss of assets. Always do remember that changing where your assets are without thinking it thru could have devastating consequences of your profits in a short and long-term. This is one holy grail many forgets but is an essential part thru your whole life and this is no exception.
What Can I Do?
Note that this is based on the research I've done and my experience and by no means financial recommendations. You have a lot of options to choose between of what do do in a downtrend market. If you have your savings in different Cryptos that's not locked by any means you'll have a few options, but you need to have a close eye on the market and your investments. When you seen your assets go up in a bullish market, you'll know it. You'll also know when the market is plateauing you usually see your assets go down 2% one day and the next day go up 3% after a while you'll see a pattern of your assets start to lose value day to day.
Remember Cryptos is volatile and the switch for a bullish to a down trending market can go very fast. But when you'll see that your investments starts to loose more and more, you can do some of the examples down below. The first two examples is about margin borrow, by this you need to switch transfer your assets for your main account to margin account.
- Switch you Crypto assets to stablecoins, this is risky but can make exceptional profits, you'll borrow of the asset/assets you had before switching to stablecoin/stablecoins and selling it as fast as possible to highest price possible. When the crashed market has plateaued, you'll buy back the borrowed asset/assets that you sold for the stablecoins you did get for the selling. The asset you sold at a higher price has now a lower value. You'll now gain some in the asset/assets you borrowed and sold at a higher price, because you bought it back at a lower price. This making you able to pay off the debt of the borrowed asset/assets and have some left that your profit.
After this you could follow the other possibility below for even more profit. But just with the modification of borrowing stablecoins at the bottom and stabilizing part of the crash when you have payed of the borrowed asset/assets. Making you able to borrow more.
- You could to a another tactic similar to that above but not as advanced or do the tactic above and after that following this tactic to. Let your assets be or switching to stablecoins (switching to stablecoins will likely minimize loss) and either borrow more stabelcoins directly or further down the crash, this is your choice. It's safer borrow further down the crash at least if you borrow in the margin trade, the further down the better margin level (debt. level) but the lesser you could borrow due to the combine value of you assets is lower. You need to evaluate risk vs reward.
When you'll see the market stabilizing you buy back your assets if you had switch them to stablecoins if didn't just let it be. With the borrowed stablecoins you now buy more of your asset/assets. When the market has gone up and stabilized at a higher price you sell off how much you need of the asset/assets you bought with the borrowed stablecoins to cover the borrowed stablecoins. By this you have gained more coins in you asset/assets and more value in the end.
- If you don't have time or have the motivations and patience to do the tactics above that could minimize loss very much or even make you go with profit. You could just let your assets be and buy the dip. By this collecting more tokens of a chosen asset (Crypto) to a lower price. This tactic is not needing that higher grade of attention as more advanced tactics above.
Above you have three solid options on what do to that could minimize loss and even maybe gain some profit for you. The three options is divided in how much time and patience you have to sit clued to the screen and how advanced into trading you're willing to go. But at least if you didn't know this you now have some more tactics to put in your toolbox when the market is not in an uptrend.
I hope this could help someone to minimize loss and try to do as much as they can in downtrend market and eventually make you a more experienced trader with a huge toolbox. There is no stop in learning, you can always expand your brain.
Thank you for reading!
