3 Tips on How to Handle a Crypto Crash
Use Strategy Not Emotion…
Yesterday (12/3/21), Bitcoin fell by ~$15K in less than 24 hours representing a sudden 25% drop. Ethereum experienced a similar ~17% drop, with the price falling $1,100 in one hour. Several other projects fell over 20%. Some outlets speculate that stop losses, leveraged longs, and/or broader market nerves sparked the crash. Regardless of what sparked the downturn, major pullbacks are normal in crypto, particularly during a bull cycle. Below is a Bitcoin chart from the 2017 bull run for reference, notice the half dozen 20%+ pullbacks.
While crashes can be hard for new crypto investors to stomach, volatility is standard and investors should view them as a typical and healthy part of the process. Below are 3 strategies for how to manage crypto crashes.
Strategy 1: When in Doubt, Zoom Out
Even though crashes can be scary, it is important to remember that they are temporary. Assuming that one is invested in solid projects, pullbacks are usually short-lived. This is especially true during a bull market. When we zoom out and look at price action over the last year, Bitcoin’s price has gone up…
