A day in the crypto world is like a year in the human world. Whenever extreme market conditions such as waterfalls, stop-loss triggers, or black swan events occur, investors holding positions often face a dilemma—holding on might lead to liquidation, while cutting losses could lead to regret. Today, I want to share a set of practical strategies to help everyone find a way out of difficulties.

The easiest trap to fall into is the obsession with "holding to break even." Especially when using leverage, hesitating even for half a second can result in forced liquidation. Instead of betting on a trend reversal, it’s better to cut losses decisively and exit. What are the benefits of doing this? It prevents losses from continuing to grow and preserves capital for a potential rebound—that’s the best approach.

If you believe in the long-term value of a certain coin, consider a different approach. Gradually reducing your position can be a good plan—lock in some losses first, then monitor the remaining holdings near moving averages and observe trading volume changes, adjusting flexibly according to market conditions. This way, you’re not completely giving up nor stubbornly holding to the end.

For mainstream coins like Bitcoin and Ethereum, which are more volatile, a reverse hedging strategy is another option. Open counter-position orders within a reasonable price range, using the profits from new positions to offset the losses from trapped positions. This acts as an insurance policy for yourself. Good risk management naturally stabilizes your mindset.

There’s also a situation where holding onto altcoins results in long-term entrapment. In such cases, there’s no need to stubbornly hold on. Instead, cut losses decisively, and redirect funds into mainstream coins or promising projects with solid fundamentals and high market consensus. Let idle funds generate returns again, using new profits to cover old losses.

Ultimately, crypto investing is about learning to respect the market. The essence of solving losses isn’t about making back everything immediately, but about staying alive and finding a way out of the predicament, preparing for the next wave of market opportunities.