After the liquidation in the cryptocurrency market, where to go? Here’s a guide to rebirth!

The rollercoaster market in the cryptocurrency world has made many people experience a 'heartbeat acceleration' again, and the news of liquidations is frequent, which can easily lead to a breakdown of mentality💥 But don’t panic, today we will talk about how to choose after a liquidation, and maybe it can help you turn the tide!

1. Calmly review and identify the 'culprit' of the liquidation

After a liquidation, the first thing to do is definitely not to slap your thigh in regret, but to calm down and review. Was it a result of excessive leverage that was directly 'taken away' by minor market fluctuations? Just like the major Bitcoin drops in 2025, leveraged players suffered heavy losses. Or was it a misjudgment of market trends, blindly going long in a downtrend? Or did you simply not set a stop-loss, harboring luck, and ending up deeper in trouble?

For example, a friend of mine thought a certain altcoin would definitely soar while trading contracts. Not only did he invest all his funds, but he also added 5x leverage, and the project team 'ran away', leading to a total liquidation. Upon reviewing, he realized he had not researched the project thoroughly and just gambled based on rumors. This is a typical 'giving away heads' operation. Only by identifying the problem can we avoid falling into the same pit next time.

2. Adjust your mindset and say goodbye to 'gambler's psychology'

Liquidation in the cryptocurrency market can easily throw off one’s mental balance, either rushing to recover losses with frequent trading or completely withdrawing from the market. Both extremes are not advisable! It is important to understand that volatility is normal in the cryptocurrency market; a single liquidation does not mean the end of the world.

Imagine you lost money in a casino and thought about recovering it immediately, so you keep increasing your bets, resulting in even worse losses. The same goes for the cryptocurrency market; rushing for quick success will only lead you to make more wrong decisions. We should treat investments like professional investors do, as a marathon rather than a sprint. Even if you face liquidation, you can adjust your pace and start anew.

3. Learn and upgrade your investment skills

Since we 'stumbled' in the cryptocurrency market, it indicates that our knowledge reserve is still lacking. At this time, quickly bolstering your knowledge is the way to go. Start with the basics of blockchain principles, understand the operational mechanisms of cryptocurrencies, and then delve deeper into candlestick analysis and technical indicators to learn how to judge market trends.