cryptostudy

“Catching the knife” is buying an asset that is falling sharply, hoping that it will now turn around and go up.

🚨 Why is this risky?

1️⃣ The fall may continue - the asset falls even lower, and instead of profit you get -50% or liquidation.

2️⃣ Rebounds are short-lived – even if the price has jumped a little, it can then fall even more.