Topic: How can you manage potential losses during a crash - page 3. (Read 1164 times)
Reducing total loss is helping to return your capital again, but I think it's better to hold your investment when there is a big loss on the coin you hold. Hold it back.
This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?
Yes but if the price goes down anymore then you will never feel the need to withdrawal your money and invest it anywhere else, you need to wait and should keep hope for the price increase and when the price will increase too much you can recover your lose, for that you need to be patient and wait for some good time. 
I have never thought about the potential losses during a crash. As for me, this is not likely to happen as I stick to the long-term hold strategy. I think that you need to be good at math and different calculations. You need to know how the system works
Until you sell anything, you do not lose anything. Just held the altcoins and BTC that you have already. In case, you have enough income to buy more crypto, do it, as with time, this money will be even tripled.
The smart thing to do is to prepare during good times for the devastating market moves that could occur, and the following three things are worth thinking about as you plan your risk management strategy: 1st, Be ready for a market crash before it happens; Investors should always have a potential crash in mind when they put together their investing strategy. 2nd, During the crash don’t do a thing; More investing mistakes happen during market crashes than at any other time. 3rd, After the crash assess the situation; After waiting an appropriate length of time to let your emotions calm down, look at how your portfolio performed and see what worked and didn't work.
This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?
Yes but if the price goes down anymore then you will never feel the need to withdrawal your money and invest it anywhere else, you need to wait and should keep hope for the price increase and when the price will increase too much you can recover your lose, for that you need to be patient and wait for some good time.
This might work but at the end you might end up losing more than you would have if you had cut your losses and put the fund elsewhere. What if the price never recovers or takes a long time to and by that time you've exhausted all your patience?
When it comes to crypto Crashes ... best thing is holding & Stay in USDT .... but personally i don't care about BTC Crashes because I'm a long term investor .. i just hold it and sell when it goes up
I just don't mind it, i am more into long term holding for a good coin rather than a quick profit from their market, if there will be a crash in the market then i will just hold it and accept the possible scenario that could happen so i will be ready and i will not cry like a baby when i experienced huge losses.
you need to be prepared for such an event and have a plan to eliminate such losses, and such risks in the world are crypto
Yes before I started investing in cryptocurrency i have already created plans just incase the crypto i invested will crash unpredictively because inevsting without plans can make us panic and may be lead us to potential losses of our investment. 
I think that the only correct solution that will help to save money during the fall of prices is using the stop loss. Averaging is not the best solution. If you constantly use averaging then someday the money will run out.
thats good risk management.although some people said if we dont sell our asset, it will not make it loss.but our emotion are not ready to face price drop sharply.and cut loss is best choice.
you need to be prepared for such an event and have a plan to eliminate such losses, and such risks in the world are crypto
I think that the only correct solution that will help to save money during the fall of prices is using the stop loss. Averaging is not the best solution. If you constantly use averaging then someday the money will run out.
Your strategy can be nice but this is mostly scheme for the professional traders, for a newbies or people that do not have that much experience my suggestion would be to work more with USDT tether so when crash will come changing the money to tether is a nice option tho
That is why it is very important to have back up accounts to be placed in other investment type, that in case one crashes, there is a back up placement to save the lose,and most of all the emotional readiness, is the moat important that you are prepared in case bad scenario like crash happens, that you are ready to accept any situations either good and bad. In other word, knows to gamble
There is no particular answer for that. Diversify. If you can afford it, don't store everything in crypto, buy some gold or reliable real estate.
Diversification can be a good option for a dumping market, its not a total cash and better to called as a correction. Buy at the lower price and sold it with profit, that's how you can survive in a dump market or if you have coins already better to just hold and be back when bear market is done.
For sure you shouldn't sell if it's crashing, unless you spot some opportunities able to cover your actual loss.
During a crash its better to just hold your coins and wait. You might suffer a great loss if you panic and sell your coins for a very cheap price.
During a crash is a bad time to sell i believe because you might sell it way cheaper than the amount you invested. How to handle it is to wait a bit longer and listen to news of it coming back up.
The most common answer to this question will be to hoard and to wait for the correction to reduce or elimate your potential losses.
My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.
What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.
So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000.
My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.
Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.
Day 1 - $9000
Day 2 - $8550
Day 3 - $8100
Day 4 - $7650
Day 5 - $7200
Day 6 - $6750
Day 7 - $6300
Day 8 - $5850
Day 9 - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0
In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work.
This is just basically what traders already do, but as we now the problem is that it is impossible for everyone to be a winner, when you trade or invest in anything somebody has to lose money for someone else to earn it, doing that strategy as you suggest you will need 21 straight days of significant profits to break even and while that sounds easy it is not. My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.
What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.
So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000.
My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.
Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.
Day 1 - $9000
Day 2 - $8550
Day 3 - $8100
Day 4 - $7650
Day 5 - $7200
Day 6 - $6750
Day 7 - $6300
Day 8 - $5850
Day 9 - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0
In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work.
The most common answer to this question will be to hoard and to wait for the correction to reduce or elimate your potential losses.
My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.
What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.
So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000.
My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.
Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.
Day 1 - $9000
Day 2 - $8550
Day 3 - $8100
Day 4 - $7650
Day 5 - $7200
Day 6 - $6750
Day 7 - $6300
Day 8 - $5850
Day 9 - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0
In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work.
I have done this before with my investment in alts,My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.
What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.
So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000.
My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.
Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.
Day 1 - $9000
Day 2 - $8550
Day 3 - $8100
Day 4 - $7650
Day 5 - $7200
Day 6 - $6750
Day 7 - $6300
Day 8 - $5850
Day 9 - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0
In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work.
So far when I manage to gain some profit from this and if I choose to hold my alt-coin it would end up the other way,
When I see that my alt-coin was playing with 50 sats fluctuation everyday I decide to go in and sell it then set a buy order with less than 50 sats I manage to earn about $30-60 per day back then .
And luckily when the last day of my trade I predicted it wrong it didn't go up to the price that I have set and because of that I need to cut loss and it turns out to be a good idea now that alt-coin was way more lower than what I expected.
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