Great question — in the crypto market, when an asset rises by 20% and then falls by 30% in a short time, the impact on your investment depends on your strategy and type of operation. Let's look at the main scenarios:

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1. Spot Purchase

If you bought crypto directly (without leverage):

Example: you bought 100 dollars in an asset, it rises by 20% (goes to 120), then falls by 30% from the value of 120 (goes to 84).

Real loss: you still have $84, so you lost $16 from the initial value.

You don’t lose everything unless the asset goes to zero.

What to do?

Hold, if you believe in the project.

Take advantage of the drop to buy more (the famous "buy the dip"), with caution.

Diversify to not depend on a single asset.