In 2025, Bybit was hacked, and $1.5 billion worth of ETH was stolen; in 2022, FTX went bankrupt, leaving millions of investors with nothing; in 2020, the 312 black swan event caused Bitcoin to plummet by 50% in a single day— the crypto market has never been short of black swan events, and each time a black swan appears, a large number of investors face losses and exit. As an analyst who has experienced multiple black swan events, I have summarized a set of risk avoidance methods, which I will share with you today to help you exit safely when a crisis strikes.
First, we need to identify the signs of black swan events. Many black swan events do not occur without warning. For example, before FTX went bankrupt, there were already issues such as tight cash flow and difficulties for users to withdraw funds; before Bybit was hacked, there were rumors of security vulnerabilities. We should develop the habit of paying attention to industry news and platform dynamics. Once we notice abnormal situations, such as delays in withdrawals from the platform, an increase in negative news, or if a project shows signs of team absconding or code vulnerabilities, we should take timely measures, such as transferring assets to a secure wallet or directly liquidating our positions.
Secondly, manage your positions well and do not put all your eggs in one basket. When a black swan event occurs, the market will experience panic selling, and almost all crypto assets will decline. If your position is too concentrated, you are likely to suffer significant losses. My advice is to diversify your investments across multiple different targets, such as mainstream coins, platform coins, and potential coins, while keeping a certain amount of cash on hand. This way, even if a particular target has problems, it won’t affect the overall asset security.
Next, learn to use derivatives to hedge risks. For investors with some experience, derivatives such as futures and options can be used to hedge market risks. For instance, when market risk is high, one can buy put options, so if the price drops, the income from the options can offset the losses from the spot market; one can also sell futures contracts to lock in current profits. However, be aware that trading in derivatives carries high risks, and beginners should be cautious about trying it.
Finally, we must remain rational and not be swayed by emotions. When a black swan event occurs, panic will permeate the market, and many people will blindly sell off in fear, resulting in expanded losses. We need to stay calm and objectively analyze the impact of the event, avoiding following the crowd. For example, after the 312 black swan event, many people cut their losses and left the market, but afterward, the market rebounded. Those who held on or bought at lower prices achieved good returns. If you want to learn more about strategies for dealing with black swan events, follow me @链上标哥 so you won't get lost!
