The recent questions from many in the backend: "Will government-level uncertainties really impact the crypto market?" Instead of dwelling on this question, ask yourself: the last time the market experienced extreme volatility, did your account hold up?
Historical data is here—after the last government shutdown, the total liquidation across the crypto market exceeded $19 billion, with 90% of it being long positions. This is no coincidence. When regulatory information is in a vacuum and market data is missing, liquidity can evaporate instantly. Many confidently say, "I am a long-term holder, short-term fluctuations don't matter," but they overlook a deadly risk: in extreme market conditions, you might not be able to sell at all, only forced to bear the costs of increasing losses.
**Step 1: Immediately adjust your position structure**
I use the "three-layer position method," sharing the approach directly (for reference only, not investment advice): 60% core holdings, all in mainstream coins, no matter how volatile; 30% trend positions, flexibly switching according to market signals, with stop-losses immediately if key support levels are broken; 10% cash, always reserved. Going all-in with full leverage is the most dangerous approach now, especially avoid heavy positions in small coins—high returns often precede total loss of principal.
**Step 2: Dynamic stop-loss is better than fixed stop-loss**
Fixed stop-losses are especially prone to being shaken out in volatile markets, but not setting any stop-loss is like walking on the edge of a cliff—lucky if you get through, unlucky if you fall. When market trends are complex, you need to adjust your stop-loss levels dynamically based on real-time volatility and support levels. This way, you can avoid extreme risks and prevent being easily swept out by short-term oscillations.
Black swan events in the crypto market always catch people off guard. Doing these defensive measures now is the wise choice.
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MidnightSeller
· 01-11 18:46
190 billion liquidation, just thinking about it is terrifying. I still don't understand how I survived that wave.
Friends with full positions, wake up. This is really not a casino.
Three-layer positions sound complicated, but when a black swan comes, there's no room for negotiation.
Dynamic stop-loss is definitely the right approach; fixed stop-loss is just a synonym for being washed out.
For those advocating long-term holding, you also need to consider whether you can survive until that day. When you can't sell, what's the point of long-term?
10% cash position has saved me several times, believe it or not.
The most desperate moment is when liquidity evaporates; no theory can save you then.
Instead of waiting for a black swan, it's better to adjust now. Anyway, adjusting now won't cost you anything.
Really avoid small coins; I've heard too many stories of overnight zeroing.
If the support level breaks, just run. No need to hesitate—life is more important.
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HorizonHunter
· 01-11 18:34
Truthfully, I survived the 19 billion liquidation wave because I didn't go all-in. Now I always keep 10% cash, which has saved me several times.
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FlashLoanLarry
· 01-11 18:31
lol the 60-30-10 framework is just capital utilization dressed up nicely... opportunity cost hits different when liquidity depth evaporates tho
The recent questions from many in the backend: "Will government-level uncertainties really impact the crypto market?" Instead of dwelling on this question, ask yourself: the last time the market experienced extreme volatility, did your account hold up?
Historical data is here—after the last government shutdown, the total liquidation across the crypto market exceeded $19 billion, with 90% of it being long positions. This is no coincidence. When regulatory information is in a vacuum and market data is missing, liquidity can evaporate instantly. Many confidently say, "I am a long-term holder, short-term fluctuations don't matter," but they overlook a deadly risk: in extreme market conditions, you might not be able to sell at all, only forced to bear the costs of increasing losses.
**Step 1: Immediately adjust your position structure**
I use the "three-layer position method," sharing the approach directly (for reference only, not investment advice): 60% core holdings, all in mainstream coins, no matter how volatile; 30% trend positions, flexibly switching according to market signals, with stop-losses immediately if key support levels are broken; 10% cash, always reserved. Going all-in with full leverage is the most dangerous approach now, especially avoid heavy positions in small coins—high returns often precede total loss of principal.
**Step 2: Dynamic stop-loss is better than fixed stop-loss**
Fixed stop-losses are especially prone to being shaken out in volatile markets, but not setting any stop-loss is like walking on the edge of a cliff—lucky if you get through, unlucky if you fall. When market trends are complex, you need to adjust your stop-loss levels dynamically based on real-time volatility and support levels. This way, you can avoid extreme risks and prevent being easily swept out by short-term oscillations.
Black swan events in the crypto market always catch people off guard. Doing these defensive measures now is the wise choice.