Crash Test: Navigating the Recent Market Downturn
Learn how to navigate the current crypto market downturn. This article provides insights into the factors contributing to the decline and offers strategies for weathering the storm
When the Market Falls: How to Stay Emotionally Steady and Protect Your Capital
Last night, the crypto market plunged to record lows. According to CoinGlass, more than 740,000 traders saw their positions forcibly closed, totaling over $2.2 billion in liquidations. CoinMarketCap data shows that overall market capitalization dropped from $3.62 trillion to $3.03 trillion.
Analysts point to new tariffs imposed by Donald Trump on imports from Canada, China, and Mexico as a key factor behind this drop. Bitcoin lost 6.12%, while Ethereum and Toncoin both fell by nearly 20%.Such a sudden plunge can leave many feeling stressed and disheartened, but liquidation is not a final sentence. At Walbi, we understand how important it is to have support and simple, clear guidance at times like these. Below are some tips to help you deal with the situation and prepare for future market fluctuations.
Coping with Your Emotions
- Don’t Blame Yourself
The cryptocurrency market is extremely volatile, and major crashes happen regularly. Treat any losses as part of the learning process and avoid beating yourself up. - Take a Break
Sometimes stepping away from charts and news for a day or two is the best way to calm your nerves and gain a clearer perspective. - Talk to Like-Minded People
Realizing that you’re not alone can make the situation feel less hopeless. Finding support from those who understand you can be incredibly helpful.
How to Avoid Major Losses in the Future
- Diversify Your Investments
Don’t put all your funds in a single coin. Spread them across Bitcoin, Ethereum, other promising altcoins, and even traditional assets like stocks or gold. - Use Stop-Losses
Automatic order closures when prices drop help prevent your account from being completely wiped out. - Be Careful with Leverage
The higher the leverage, the greater the risk of rapid liquidation. - Buy in Small Batches
Making regular purchases (often known as dollar-cost averaging) helps minimize the impact of sudden price swings. - Avoid Going All-In on Futures
Keep most of your coins in spot positions and only allocate a certain portion of your portfolio to derivatives. This reduces the chance of a total wipeout in the event of abrupt market moves.
What’s Next?
The crypto market is unpredictable, and it’s always crucial to keep learning, diversify your portfolio, and maintain a cool head. At Walbi, we strive to help you stay in the game by providing resources and friendly support through our communications and our Buddy signals. Remember: every setback is a lesson that makes you stronger and more experienced.
