Today, the cryptocurrency market again experienced a significant decline, with BTC briefly falling below $54,000 and ETH below $2,900. Within the past 24 hours, liquidations across the entire network amounted to nearly $590 million.
Future market trends are difficult to predict, but regardless, we must learn to face losses. Successfully navigating these periods of loss will determine one’s ability to ultimately emerge as a market winner. Crypto educator and technical analyst Duo Nine shares six strategies for dealing with losses for readers to consider.
1. **Lock in Profits Timely**
A user in the image below lost $400,000 in one trade. Starting with $500, they slowly earned up to $400,000. However, they lost all their profits in this single trade.
2. **Stay Put, Look for Optimal Buying Opportunities**
In the example above, in the current weak BTC market conditions, I would convert the $400,000 profit into USDC and participate in staking for passive income. By following this guideline, with an annual return rate of 29%, $400,000 can yield about $10,000 per month. Of course, more conservative staking returns could also be chosen. In any case, when the market further declines, the returns will remain positive.
3. **Avoid Overcommitting to Altcoins**
Buying newly issued altcoins and holding them long-term is a common way to lose in cryptocurrency, similar to buying tulips in the past with hopes of getting rich. Altcoins are suitable only for short to medium-term speculation.
4. **Don’t Quit Your Job to Trade Full-time**
Avoiding frequent trading is a good way to prevent losses in cryptocurrency. Instead of actively trading, one can invest in this emerging industry, similar to investing in a casino when buying its shares. Trading is like playing its games inside, meaning we can invest in the basic infrastructure of the crypto industry from a long-term perspective.
5. **Reject Greed, Slowly Build Wealth**
Making a year’s salary in one trade can change your life, but losing everything in one trade can also be true. Meme coins attract attention because they promise overnight wealth (or poverty). They are high-risk and worth considering only with a small portion of your capital.
6. **Accept Losses, Manage Risks**
Earning money should not be our ultimate goal; instead, we should strive to maximize our time and freedom. Bitcoin is the answer; most people realize this after losing a considerable amount playing with altcoins.
Accepting losses allows us to focus more quickly on important matters and improve our risk management capabilities. The top 5% of traders in this game win because they manage risks well; they may often lose, but the losses are small, and they profit several times a year.
Losses are common, but keeping them small prevents them from destabilizing you.
Patience with oneself and finding one’s rhythm applies not only to the cryptocurrency field but to life in general.
