How to Survive in the Volatile Cryptocurrency Market?
In the extreme fluctuations of the cryptocurrency market, luck is not enough for long-term profit; only specialized strategies can help investors survive and make a profit. The market has seen the largest market cap increase in a day, followed by the second-largest drop in history the next day. Many traders have lost money due to panic selling or blindly chasing prices. Here are some survival strategies in such situations:
Cash is King
Hold sufficient cash to ensure liquidity. Top traders gradually reduce their positions as the market rises and keep funds to buy at lower prices.
Price-Centric
Trading is based on price ranges rather than time. Set buy (value support) and sell (risk-reward ratio) targets, and patiently wait for execution.
Calm Execution
Match positions with capital strength to avoid losing emotional control. Maintain confidence under favorable support, gradually take profits, and wait for better entry points.
Practical Strategy
For example, if Bitcoin drops from 100,000 to 90,000, build positions in batches down to 82,000; add more at 78,000, with an average price of 83,000-84,000. Take partial profits at 85,000, and fully take profits at 93,000, adjusting the next entry price.
Conclusion: In a volatile market, flexible strategy adjustments, batch operations, and risk control are key to survival.
