I invested when it hit a low, but it keeps going down. What should I do?
You find yourself in a very common situation among investors, especially in volatile cryptos. Here’s a structured approach to decide what to do:
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🔍 1. Go back to your initial plan
Did you have an entry/exit plan? (stop-loss, profit target, investment horizon)
Short, medium or long-term investment?
If it’s long-term, a drop can simply be an "accumulation opportunity".
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📊 2. Analyze the fundamentals
Are the reasons for your investment still valid?
Is the project (or company) still solid?
Has there been a fundamental change (new regulation, hack, loss of trust…)?
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🧠 3. Keep a cool head
No panic-selling: selling just because "it's going down" is not a strategy.
Psychological bias: sometimes we don't want to sell at a loss just to avoid "accepting" that we were wrong. But waiting too long can cost more.
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🧮 4. Possible options
1. Hold
If you still believe in the project and your investment thesis holds, you can wait.
2. Strengthen (DCA – Dollar Cost Averaging)
Buy gradually to smooth your average purchase price. Be careful not to "average down" without solid conviction.
3. Cut the position (Stop-loss)
If you have a psychological or technical threshold you don't want to exceed, exiting can limit losses.
4. Partial exit
You can sell a portion to limit exposure while maintaining a position if the market turns.
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📈 Concrete example
If you are in a crypto like Solana, Ethereum, or BNB:
Look at important technical supports
Check the global context (macroeconomics, Fed/BCE decisions, BTC, halving…)
Follow the news on the project