(Main reasons)

* Major economic factors: Central bank decisions regarding interest rates and inflation drive investors to flee from high-risk assets (such as cryptocurrencies) to safer assets.

* Profit-taking: After every significant rise, major investors (whales) sell part of their assets to convert virtual profits into cash, causing selling pressure.

* Regulations and legislations: News about tightening laws in major countries raises concerns and drives small traders to sell emotionally.

* Liquidations: When the price drops slightly, "leveraged" positions are forcibly closed, accelerating the decline like a snowball.

## Strategy for facing downturns (Action plan)

Instead of panicking, follow these golden rules:

* The "Do Not Sell Emotionally" rule: Loss only becomes real when you hit the "Sell" button while in the red zone. If you believe in the cryptocurrency project, patience is your key.

* Dollar-cost averaging (DCA): Instead of entering the market with all your liquidity at once, buy small amounts over different time periods and prices. This reduces your average purchase price.

* Portfolio reassessment: Get rid of "meme coins" or weak projects, and focus your liquidity on leading cryptocurrencies (like Bitcoin and Ethereum) that have historically proven their ability to recover.

* Long-term investment: Stop checking the screen every 5 minutes. History tells us that the crypto market goes through cycles; a downturn is just a pause before the next leap.

> Golden advice: "Buy when everyone is afraid, and sell when everyone is greedy.

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