1. Reasons for the market decline:
Profit-taking: Large investors (so-called 'whales') sell off part of their assets to secure profits after a rise. This can trigger a wave of selling and a drop in prices.
Macroeconomic instability:
High inflation, central bank rates, geopolitics - all of these affect investment markets, including crypto.
Panic among retail investors:
Ordinary users (non-professional traders) start selling out of fear of losing everything, thereby exacerbating the decline.
2. What I do in such a situation: I switch to stablecoins
These are cryptocurrencies pegged to the dollar or another stable currency (e.g., USDT, USDC). They are not as volatile. It's like 'parking' money to later re-enter the market profitably.
I buy on dips
When the market has dropped, some promising projects become cheaper. I buy them while the price is 'at the bottom' to sell later during a rise.
• I strengthen the DCA strategy
3. Advice for others:
Do not succumb to emotions:
Panic and greed are the main enemies of an investor.
Maintain liquidity:
Keep some funds in reserve so that you can buy assets at a favorable price.
