#MarketPullback How to protect your investments during a market pullback?

Introduction

#MarketPullback is trending again: the cryptocurrency market is falling after a rise. How to protect your investments during such times? Here are some practical tips.

Protection Strategies

1. Stop-losses: Set stop-losses to automatically sell an asset if the price falls below a certain level. For example, if you bought Bitcoin at $80,000, set a stop-loss at $75,000.

2. Diversification: Don't keep all your funds in one asset. Invest in different cryptocurrencies, stocks, or even gold.

3. Hedging: Use instruments like options or futures to insure against declines.

4. Stable assets: During pullbacks, move part of your funds into stablecoins like USDT or USDC, which are pegged to the dollar.

5. Long-term thinking: If you are investing for the long term, a pullback may not be as critical. Ignore short-term fluctuations.

Psychological resilience

Pullbacks often provoke emotional decisions. To avoid panic:

• Don't check prices every hour.

• Have a clear plan and stick to it.

• Avoid FOMO (fear of missing out) and FUD (fear, uncertainty, doubt).