Market correction is in, what next?
Over the past week BTC has been wobbling around $31,000. Are we looking at another crypto winter? What do you do when the market is in deep correction like this? Let’s find out!
Some investors can’t stomach seeing their portfolio diminish by 10%. If you are a short-term investor or a day trader using leverage, the correction might prove fatal to your portfolio. If you aren’t an expert in trading, you better realize that the possibility of correction is always on the table, and that going all in is never a good decision. You have to have an exit strategy and ultimately, make the decision: keep your positions open or wait for them to turn green.
You can better protect your assets from the risk of correction by:
Setting a stop loss or a stop limit order in case the big drop comes. This will allow you to cut your losses at an acceptable level.
If you are a long-term investor, try putting your assets in yield farming and other financial tools to earn passive income.
Keeping some of your cryptocurrency holdings in stablecoins so that you are always prepared to weather the correction.
Market corrections shouldn’t be a problem — it’s a change in seasons, so the less you panic and the more you prepare, the less damage your portfolio suffers.
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