The biggest fear in trading cryptocurrencies is 'getting stuck right after buying' — wanting to wait for a rebound when shallowly stuck, and then panicking to cut losses after being deeply stuck, ultimately either getting stuck deeper or cutting at the lowest point. In fact, getting out is not about 'holding on' or 'cutting randomly'; it’s crucial to look at 'position depth' and 'cryptocurrency trends' to choose the right method to minimize losses or even make a profit.
First, look at 'position depth': shallow and deep positions have completely different solutions.
The core contradiction of being stuck is 'the extent of loss'. First, determine whether you are in a 'shallow position' or a 'deep position' before taking action:
1. Shallowly stuck (loss of 5%-15%): Don't wait, use the rebound to 'quickly escape'.
When shallowly stuck, the worst thing is 'hoping to recover the cost'; once the market continues to fall, the shallow position can turn into a deep one. The correct approach is to 'seize the rebound opportunity, either get out or reduce your position to control risks'.
Get out of the position: If you encounter a rebound after being stuck (for example, rebounding close to the purchase price or near recent resistance levels), you don't have to wait for a 'full recovery'; as long as the loss is reduced to an acceptable range (for example, 2%-3%), decisively close the position — securing profits to avoid being stuck again after a failed rebound.
Reduce position at highs: If the rebound is weak and it starts to correct before reaching the purchase price, reduce the position by 50% first — for example, if you bought coins for 1000U and it drops to 880U (a loss of 12%), when it rebounds to 950U, reduce your position by 500U, and the remaining 500U will directly lower your cost to 810U. It will be easier to recover in subsequent rebounds, and even if it continues to fall, your loss will be halved.
2. Deeply stuck (loss over 20%): Don't panic and cut losses; use 'averaging down to pull down the average price' to take back control.
Cutting losses after being deeply stuck can lead to a significant loss; blindly averaging down can lead to 'getting stuck deeper'. The key is 'find the right timing to average down and control the pace of averaging down.'
Prerequisite for averaging down: First, confirm that the cryptocurrency is not an 'air coin' (having actual ecology and listed on mainstream exchanges), and that the market does not have a 'sustained downward trend' (for example, it no longer sets new lows and shows signs of stabilizing volatility);
Averaging down method: Combine 'reducing position at highs + averaging down at lows' — for example, if you bought coins for 1000U and it drops to 700U (a 30% loss), first reduce your position by 300U (recouping 210U), and when it drops to 600U, use the 210U to average down (allowing you to buy 0.35 more coins). At this point, your total cost becomes 700U + 210U = 910U, holding 1.35 + 0.35 = 1.7 coins, with the average price dropping to 535U. In subsequent rebounds, as long as it rises to 535U, you can get out, which is much lower than the original target of 700U.
Taboo: Don't 'average down with a full position at once' — for example, if you are stuck at 1000U and it drops to 700U, then throw in another 300U to fully average down. If it continues to fall to 500U, your loss will expand from 30% to 40%, making recovery more difficult.
Two, then look at 'cryptocurrency trends': downward, volatile, upward; the operations differ vastly.
Whether you can get out from being stuck ultimately depends on the 'trend' — the same stuck position has completely different solutions in different trends; one wrong step can lead to greater losses:
1. Downward trend: Don't wait for a rebound, immediately stop loss!
If the cryptocurrency you are stuck in is 'clearly in a downward trend' (for example, consecutive daily losses, breaking below the 60-day moving average, and each rebound is lower than the previous one), the correct action is to 'stop loss immediately', and do not hold onto the fantasy of 'waiting for a rebound to cut losses':
Logic: In a downward trend, 'rebounds are all traps' — for example, if the price drops from 100U to 80U (a 20% loss), and then rebounds to 85U, thinking 'I can get out', but it continues to drop to 70U after the rebound, the stuck position becomes 30%, and waiting only increases the loss.
Operation: Even if stopping loss will result in a 15%-20% loss, it’s better than potentially losing 50% or even going to zero later — after stopping loss, transfer funds to 'cryptocurrencies in an upward trend', you can quickly recover the loss, don’t just 'hold on' in a downward trend.
2. Volatile trend: patiently wait for 'cyclical highs', without greed or panic.
If the cryptocurrency is in a 'volatile trend' (for example, fluctuating repeatedly between 80U-100U, not breaking up or down), there is no need to rush to stop loss or average down, wait for 'high volatility' to take action:
Getting out logic: The core of a volatile market is 'buy low, sell high' — for example, if you are stuck at 95U, don’t panic. Wait for the price to rise again to 92U-95U (high volatility), and regardless of whether you've fully recovered or not, first reduce your position by 50% to take some funds out; when it drops to 85U-80U (low volatility), use the funds you took out to average down, gradually lowering the average price.
Key: Don't 'be greedy and wait for the highest point' — the volatile high may not reach your purchase price. As long as your loss is reduced to within 5%, you can exit to avoid 'missing the high and falling back down.'
3. Upward trend: No need to get out, patiently holding can earn profits.
If the cryptocurrency you are stuck in is 'in an upward trend' (for example, the daily line is above the 30-day moving average, and can reach new highs after each pullback), even if you are stuck in the short term by 5%-10%, there is no need to stop loss or take action; just hold on patiently:
Logic: In an upward trend, 'pullbacks are temporary, and rising is mainstream' — for example, BTC in an upward trend pulled back from 50000U to 45000U (10% loss), but will quickly rise to 55000U, not only recovering but also gaining 10%;
Operation: If you want to accelerate recovery, you can average down with a small amount of funds (not exceeding 30% of the original position) when it 'pulls back to key support levels' (like the 30-day moving average), then take profit on the averaged down part after a rebound, which can lower the average price and magnify profits.
The essence of getting out in the end is not 'recovering the cost', but 'timely correcting mistakes'.
Many people see 'getting out' as a goal, but the essence of getting out is 'correcting erroneous buying decisions':
If you bought in a 'downward trend', stopping loss is correcting the error to prevent it from expanding.
If you bought at 'high volatility', buying low and selling high is correcting the mistake to reduce losses.
If you bought during a 'rebound in an upward trend', patiently holding is correcting the error while waiting for the trend to continue.
Remember: The cryptocurrency market does not lack opportunities, but lacks 'capital that is not stuck'. When getting out, do not be emotional; choose the right method based on 'position depth + trend' to break free from being stuck quickly and focus your energy on 'profitable markets'.
