Recently, bitcoin took the crypto industry downtown—literally. In fact, an estimated $500 million was lost in less than 3 days. In case you missed it, you can read more about it here.
However, you can’t keep complaining about it. The next step is to consider ways to salvage the situation and ensure that your portfolio suffers minimum damage.
How do you do that? Well, read on while I explain some basic crypto crisis management procedures you can always use in events like this.
Crisis Management in BTC trading
Bad stuff happens all the time. That’s why most major firms try to predict these events and provide solutions to them. In an event where a crisis can’t be avoided, such as this, the next thing to do is to handle it carefully.
The crypto industry is no different. Tools like stop-loss and limit orders are crisis aversion techniques traders can use. So what crypto techniques can you use to survive in a crisis?
How to Get Back in the Crypto Game
- Don’t panic.
I know, easier said than done, but trust me, impulsive decisions rarely end well. Take a deep breath, and analyze what went wrong. Was it a bad trade? Did you get caught up in the hype? Understanding your mistake is the first step to preventing it again.
- Protect what’s left.
Now’s not the time to go all-in on a risky gamble to recover your losses. Focus on preserving your capital. Set stop-loss orders to limit potential damage, and consider diversifying your portfolio to spread the risk.
- Education is your best friend.
This market is constantly evolving. Stay updated on trends, market analysis, and new projects. Knowledge is power, and it’s the best weapon you have against future losses.
- Develop a solid trading plan.
I know market volatility is no respecter of trading strategies. However, restrategizing will help prevent further losses. This includes defining your risk tolerance, setting clear entry and exit points, and sticking to your strategy. A well-thought-out plan can help you stay disciplined and avoid emotional trading.
- Practice patience.
Crypto is a marathon, not a sprint. Recovery takes time. Don’t rush it. Focus on making consistent, small gains over the long term.
Remember, every trader faces setbacks. It’s how you respond to them that defines you. Learn from your mistakes, stay disciplined, and keep your eyes on the prize. We’ll bounce back stronger than ever.
Getting back on Your Feet
I know, it hurts to see those red numbers staring back at you. We’ve all been there. But hey, this is crypto, and it’s a wild ride. The key is to not let emotions dictate your next move.
Take a calming walk, assess the damage, restrategize, and most importantly be patient with yourself.
Lastly, if you need a crypto exchange to sell your bitcoin or ether for naira, just download the Jackocoins app, sign up, and start trading.
Any questions or comments? Drop them here and we’ll get back to you.
Till next time!
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