In recent days, the market has been fluctuating around 90000, and many people have completely given up now.
The most common question asked these days is whether we are in a bear market now and if there will be any opportunities ahead?
Should we cut losses and exit the market, and so on.
Actually, no one can answer this question clearly. Thirteen firmly believes that the bull market is still here, but what positions we will fall to on the way to the bull market? No one knows.
So we can only prepare for both scenarios. After all, if Bitcoin really experiences a sharp drop before the bull market arrives, many people's mindset will definitely explode, and they will be unable to resist cutting losses and exiting.
This may be the biggest tragedy of investing in cryptocurrencies.
Instead of being overly concerned about gains and losses, it's better to prepare for both scenarios in advance:
The first approach is to reduce position risk by clearing leverage when the rebound happens, and finding ways to manage on your own. If there are losses, then you have to act accordingly, as you must pay the price for your greed.
Reducing position risk is usually achieved by decreasing the holding ratio and increasing the cash ratio, cleaning up leverage, and embracing Bitcoin.
This first approach is generally used to cope with sharp market declines.
The second approach is to maintain a certain proportion of positions, which is the opposite of the first approach, used to prepare for a bull market. If the market takes off directly, we won’t miss out completely.
Of course, if we do miss out, it’s not a problem. As long as the upward trend is confirmed, we can still enter from the right side, though the cost will be higher.
In short, you need to be sure that if an extreme crash happens in the crypto space and we enter a bear market, you can still sleep peacefully, so you can thrive in the crypto world for a long time.
Once you fixate on short-term market conditions, you will be left with nothing by the market manipulators.
