How to Protect Your Cryptocurrency Investments in Times of Crisis?

The year 2020 has started in a very challenging way for the whole world and it continues to do so. Especially with the coronavirus, which was first seen in China and spread rapidly all over the world, economies came to a standstill. This caused a decline in the financial markets at a level not seen since 2008, and crypto coins were also affected by this decline. So how to act in the
crypto money
market in such crisis periods when price volatility is very high and it is difficult to protect the investment?

 
First of all, crisis periods are times when price mobility is very high and there are sharp declines in the market in a very short time. We can say that making a decision by knowing this and staying calm is the most important criterion. We should know that no market can rise or fall forever. For this reason, we may experience losses from time to time as well as gains from time to time. Without saying “How can I make a loss?”, we should be able to close our losing positions at stop-loss levels in crisis periods and try to keep our losses at a minimum level. These losses should not cause us stress and we should not forget that there will be times when we will compensate for our losses at some point by staying calm. The biggest risk in times of crisis is not that we experience losses, but that these losses cause stress and that we make wrong decisions because of this. In a very short time in the market, your loss can reach 5% – 10% and even up to 20%. In these cases, in order to keep your losses to a minimum, you should not miss the stop-loss levels and you should be careful not to stay in the opposite position with the market trend by staying calm.
 
We should know that the market is a cycle. After the decline experienced in crisis periods, there will be an increase again. We have to wait for the time when the market will enter the upward trend again and be patient for this. After periods of decline, it may take time for it to rise again. In this process, intermediate trends may occur and short-term rises or falls may occur. Again, declines in these intermediate trends can be drastically realized. In these sharp price movements, it will be important to follow the stop-loss points. What is important for us is to catch up with the permanent trends. When you are sure that the uptrend is confirmed, we recommend that you take a position according to the trend.
 
In addition, you should be careful to make as few transactions as possible during market movements in times of crisis and not try to catch price movements aggressively. It will not be possible to predict the market during this volatility, which creates a risk of further losses. It is more accurate to follow trends to win in times of crisis than to follow prices minute by minute. Otherwise, instant price tracking in front of the screen may create a panic atmosphere in you and cause you to make the wrong decision.

Click for more information on how to manage trading psychology in times of crisis!