The further the crypto markets continue to run higher, the greater the risk that another major correction or worse, a market crash will happen.

Over the course of the past month we’ve witnessed coins dropping as close to 30-50% their worth. So, how do you protect your coin portfolio in a down market?

Crashes can happen very fast

  • This is not the stock market, an entire market can crash in a matter of minutes.
  • It is important to have your stop losses set according to your trading strategy.
  • Having cash in a down market allows you to be more aggressive after the crash has recovered.

Trading the news

  • Since crypto is such a new and volatile market, the economy tends to react harshly to any sort of negative news.
  • This past month, crypto was dealt with two punches: China’s government banning ICOs and JPMorgan’s CEO calling Bitcoin a ‘fraud’.
  • These events that can cause a coins price to move wildly up or down.
  • At press time, the market is looking to bounce back off of that drop and will almost recover completely.
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Finding the bottom

  • You cannot assume that a market bottom is in.
  • Stick with a buying strategy, and when the market correction comes you’ll have an opportunity to adjust.
  • Learn to average down your initial trades; if the market goes down, add more bearish positions in your portfolio.
  • Why You Shouldn’t Sell Your Coins Too Early

Ask yourself if the fundamentals of your coin have changed

  • Is your coin still under development. Is the developers staying in communication? Did you do your research and the fundamentals are still sound?
  • If you still believe Blockchain technology is revolutionary then you have nothing to worry about.
  • Remember, this market will have huge fluctuation and is expected.

Zoom out the chart

  • Take a deep breathe and zoom the chart out. We are right back to where we started last last month.
  • Zoom out even more and see how far this market has gone.
  • Market correction is good sometimes. It keeps the true supporters in.
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