Market in Low Liquidity Season, What to Do?
Currently, the market is in a state of low liquidity. There are no significant bids from smart money, and retail interest is very low, resulting in a tendency for prices to decline. So, what should we do?
#1 Risk Less and Do Capital Preservation.
In this phase, not losing money is the best thing we can do. There are times when we can take high risks, and there are times when we need to stop being aggressive. In this situation, we should preserve our capital and take fewer risks than usual.
#2 Don't Try to Time the Market Extremely.
In unpleasant times like these, don't try to time the market extremely. Maintain some exposure to assets, although not 100%, because rallies can occur outside of expectations, and we don't want to be completely sidelined.
#3 Focus on Majors.
In this situation, excessive speculation on various speculative altcoins is less preferable. Try to take advantage of discounts to build exposure to more stable assets like Bitcoin, rather than speculative altcoins that require a significant narrative to move significantly.
#4 Never Leave the Space.
This situation tests the loyalty of market participants. Although it's not as intense as before, don't leave and continue to learn what's happening, because there will always be new things in the market that we can discover. Don't leave and keep learning new things until better times return.
This post provides valuable insights on how to navigate a market with low liquidity, focusing on risk management, capital preservation, and strategic asset allocation.