"How to Recover Your Portfolio in Times of Decline: Smart Strategies".
1. Don't sell out of panic
First, breathe. Don't make emotional decisions. Selling when everything is falling usually turns temporary losses into permanent ones.
2. Review your strategy
Ask yourself:
Did I invest in solid or very speculative assets?
Was my portfolio diversified?
Is my investment horizon still long-term?
If your investments have strong fundamentals, it may just be a matter of time before they recover.
3. Rebalance
Adjust the proportions: sell a little of what is stronger (if you have something that has withstood) and buy more of what is undervalued, if you believe in its long-term potential.
Consider including more stable assets (like Bitcoin, instead of very volatile altcoins).
4. Dollar-Cost Averaging (DCA)
You can continue to invest small amounts periodically (Dollar-Cost Averaging) in your preferred assets to lower the average purchase price.
This requires that you truly trust those assets in the long run.
5. Diversify more
Don't put everything in cryptocurrencies: you can diversify into stocks, bonds, commodities, or real estate.
In crypto, diversifying among Bitcoin, Ethereum, and a few others can help.
6. Learn from experience
Did you take unnecessary risks?
Did you invest money you couldn't afford to lose?
Use this decline as an opportunity to adjust your mindset as an investor.