When the market is "burning red" and everything is crashing down, it's important not to succumb to panic. Here are a few steps that experienced traders and investors use:

Psychology and Strategy

1. Stay calm

Panic = the biggest losses. Most sell at the bottom and then regret it.

2. Remember your horizon

If you are a trader - use stop-losses and don’t hold losing positions without a plan.

If you are a long-term investor - such drops are part of the cycle, and sometimes it's the opposite chance to buy more.

Risk Management

3. Don’t average down thoughtlessly

"Buying the dip" (DCA) is a working strategy only if you have a plan and liquidity reserves.

4. Keep some in stablecoins (USDT/USDC)

They help to weather the drop and provide the opportunity to enter profitably later.

5. Don’t trade on emotions

If you feel stressed - it's better to step away from the terminal for a while than to open a trade on nerves.

Practical Actions

6. Reassess your portfolio

Remove weak projects with low liquidity.

7. Watch key levels

For example, a drop in BTC below major support levels often sets the tone for the entire market.

8. Learn to earn even in a downturn.