3 rules that will keep your portfolio from turning into a complete blood bath next time Bitcoin crashes

Ok, so here's what you need to know so your portfolio doesnt implode next time Bitcoin goes down (because yes, it will happen again and again!)

Rule #1 - You shall not panic sell!

The worst thing you can do when Bitcoin crashes and the Alt market goes red is to sell your coins. As long as you don't sell, you haven't lost anything, you still have the same number of coins! A temporary loss of value is so much better than a permanent loss... So buckle your seatbelts and hodl!

Of course, the best option would be to sell your coins for BTC before they go down too much and then get back in at a lower price. But I would recommend this other technique as it's much simpler!

Second best option is to set up stop losses! When you see your coin has made 50% gains, set up a stop loss to sell your coins if the price drops down under 30% profits or what ever percentage you feel at ease with (you can also keep a small bag if you have a more sizable position!).

The stop loss option is way less stressful and let's you easily lock in profit while the price is still going up! Just keep rising the stop loss as your profit rises!

Rule #2 - You shall not be greedy!

You've heard it many times and from many crypto people, don't be too greedy, but in simple words, what does that mean?

Being greedy is when you don't sell any coins or take any profits because you wait and you wait to sell at the absolute top not taking any profits on the way. Sure you will have more coins at the top, but if it crashes, you're screwed and you won't have any profits locked in as BTC!

The principle to not being greedy is simple, let's say you buy 100 coins at 1500 satoshis (each BTC contains 100 million sats in case you didn't know!) and that coin goes up in value to 3000 sats each, you've made 100% profits, awesome! Your portfolio went from being worth 150 000 sats to 300 000 sats, congrats!

Now, thats where the hard part starts, you need to sell some of your coins, even if it's still going up, even if you could make a lot more folds, you need to lock in around 5% of that BTC value and continue doing so everytime your coin reaches an all time high! That way you will keep 15 000 sats (300 000 * 5%) locked in BTC value!

That way, next time your favorite coin takes a dip or when BTC starts to drop and all the alts follow, you'll be able to buy back your alts at a lower price since your BTC will always have the same BTC value!

Rule #3 - You shall be patient!

If you find yourself with a loss, unless you were holding Bitconnect don't go and sell to confirm that loss! Be patient and the market will readjust, some coins may take longer than others. Sure, some coins may never recover but by setting stop losses you should be good to go to minimize your loss!

So many Lambo memes makes people think they will become millionaire in a couple days, many newcomers want instant result and get impatient when a coin goes down or doesn't go up as much or as fast as planned. You need to do your research on each coin before investing in them and know that you are entering a very volatile territory when you join crypto.

Extra tip! - Never invest more money than you can lose!

Last but not least, please don't go max your credit cards and remortgage the house to get into crypto, you should always consider that this money is already lost. Don't put yourself in an uncomfortable situation just for the sake of potential money...

This is not financial advice, just my humble opinion : )

Genny
-xox-