Preparing for Corrections in the Cryptocurrency Market
In the cryptocurrency market, moments of exponential growth are followed by corrections. In the last cycle, many investors saw their profits disappear because they were not prepared. While we cannot guarantee that history will repeat itself, being prepared for these fluctuations is essential.
Why Prepare for Corrections?
The crypto market is highly volatile. After large increases in value, drops can be quick and intense. Saving a portion of your capital to take advantage of these drops can turn moments of panic into profitable opportunities.
My Strategy at the Moment
1. Conversion to USDT: I converted 80% of my cryptos to USDT (stablecoin). This is because many of them were already up more than 300%, and I prefer to guarantee the profit than risk losing everything waiting for another 30%.
2. Keep a Portion in Cryptos: I left 20% of the cryptos in the market to take advantage of possible additional increases and not be completely left out.
3. Wait for the Correction: With most of my capital in USDT, I am prepared to buy again when prices drop.
Lessons Learned
Manage Your Greed: In the past, I expected 100x gains. Today, I am happy with 2x or 3x, since in the crypto market these gains can happen quickly.
Value Risk Management: Protect your profits and minimize losses. Remember, the stock market takes years to grow 3x, while in the crypto market this can happen in weeks.
Tips for Those Who Are Investing
Don't Invest Everything at Once: Save part of your capital to buy in times of decline.
Seize Opportunities: When the market corrects and everyone is worried about losses, you will be ready to buy.
Keep Your Focus on the Long Term: Established cryptos, such as Bitcoin and Ethereum, are safer to accumulate over the years.
Conclusion
Always keep a reserve for times of correction.After all, those who prepare for the storm enjoy the rainbow that comes after.
