3 Most Foolish Mistakes When the Market is Crashing – And How to Avoid to Survive & Profit

During the "bloodbath" market phase, panic psychology often leads many investors to make serious mistakes. Many have become victims of emotions, panic selling when prices are bottoming out or buying in too early, resulting in significant losses. Here are the three most common mistakes you should avoid and wise strategies to protect your investment portfolio. 1️⃣ Emergency Selling When the Market Hits Bottom Psychological Panic and Market Collapse When the market falls into a steep decline - possibly 10% to 20% or more - it is very easy to feel panicked and decide to liquidate assets immediately. However, panic selling when the market is at its bottom is one of the costliest mistakes.

Example: Bitcoin once dropped to around 3,100 USD in 2018, leading many to believe that 'crypto is dead', but just a few years later it reached 69,000 USD. Ethereum also experienced a sharp decline to 80 USD before a strong recovery surpassing the 4,000 USD mark. Solana once dropped to 8 USD after the FTX event, then surged by 1,000%. Lesson Learned Selling off when the market is at the bottom only helps you become a "lifebuoy" for smart investors, who are waiting for the opportunity to buy at a lower price. Instead, be patient, wait for signs of recovery, and plan a strategy to reinvest. 2️⃣ "Buy Early" Too Much - Put Everything Into The Market Risk When Buying Cryptocurrency Although the market is 'discounted', it does not mean it has hit bottom. The risk of 'buying the dip' too early is that you may get caught up in the emotional frenzy and put all your capital in when prices could still continue to fall.

Recommended strategies: Split buy orders: Instead of putting all the capital at once, execute buy orders at different price levels (laddered entries). This helps minimize risk if the market continues to decline.Keep cash reserves: Always maintain a separate cash reserve to be able to 'hunt' for deeper buying opportunities if prices continue to drop.Focus on projects with solid foundations: Prioritize investing in large cryptocurrencies like Bitcoin, Ethereum, or XRP instead of trending altcoins. Advice Don't let the 'buying frenzy' fever blur your strategic vision. Allocate capital reasonably, always prepare contingency plans to deal with unforeseen market fluctuations. 3️⃣ Hold Strong Despite Market Volatility – “HODL” Forever When 'Forever' Becomes a Trap The concept of "HODL", or holding on to the asset without selling it, is considered a strong expression of belief in the project. However, in reality, not every currency has the ability to recover after a crisis.

For example: Coins like LUNA, Voyager, or Celsius have once caused investors to lose everything when the market changed direction and there was no opportunity for recovery. Smart Investment Strategy Set profit targets: Always identify a specific profit-taking price during the uptrend. This helps you realize profits instead of waiting indefinitely for just a 'dream'.Rotate portfolio: When the market trend changes, actively switch to stronger assets with potential for recovery and growth in the future.Monitor long-term support: If a coin breaks long-term support levels, do not hesitate to reconsider your position. Sometimes, accepting losses and restructuring your portfolio is necessary to minimize long-term risks. 💡 Conclusion Surviving and even making a profit in times of market collapse requires a wise investment strategy, patience, and emotional control. Instead of letting emotions dictate decisions, build a specific plan based on principles: Do not sell out of fear. Buy in a strategic and controlled manner. Regularly assess investment portfolios based on market realities. The lessons from the past of Bitcoin, Ethereum, and other altcoins are evidence of knowing when to "stick" and when to change strategies. Always learn, monitor the market, and adjust your plan to avoid becoming one of the victims of herd psychology.