TL;DR
After Monday’s crash, Bitcoin is up 8%, Ethereum is up 11%, and Solana is up a whopping 20% — but black swan events like this have a tendency to take weeks to recover from (not days).
Full Story
If you’ve never fallen out of a tree after your older cousin said he’d break your Nintendo 64 if you didn’t reach the top in the next 5 mins…
Lettuce explain how it works:
You rarely fall straight down.
Typically, you bounce between the branches, making flailing grabs before you’re met with the hard, unwelcoming embrace of the ground.
Same tends to go for black swan market crashes like the one we’re in now.
After Monday’s crash, Bitcoin is up 8%, Ethereum is up 11%, and Solana is up a whopping 20%.
That’s cool!
But have we hit a tree branch, or solid ground?
We’re not here to give a definitive answer, but a warning…
Cause right now you may have be experiencing some intense FOMO.
“If I had’ve bought in when everyone was panicking, I’d be way up rn! I don’t want to miss any more gains…time to take a 100x long.” — you, probably.
This is a great way to get w-r-e-c-k-e-d.
So before you ape in, remember:
Black swan events like this have a tendency to take weeks to recover (not days).
Check out all the tree branches we hit in 2020, before bottoming and grinding mostly sideways for months:
The takeaway:
If you can’t keep yourself from entering the market, the safest way to do so is by dollar cost averaging in (buy a little each week).
If the devil on your shoulder has a gun to your head, forcing you to take on leverage (borrow cash to buy more crypto), here’s how to soften downside risk:
Low leverage
Low position sizing
Stop losses tighter than the skinny jeans you wore in middle school
Alright, that’s everything — be safe out there folks!
Conclusion
In conclusion, navigating the volatile cryptocurrency market can feel like falling out of a tree – unpredictable and full of ups and downs. While recent market recoveries may seem promising, it’s important to remember that black swan events like this can take time to fully bounce back from. Don’t let FOMO drive your investment decisions, and always proceed with caution, especially when considering leverage. Stay informed on the latest news and trends in the crypto world by visiting DeFi Daily News. Stay safe, stay smart, and happy investing!
