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.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
MidnightSellervip
· 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.
View OriginalReply0
HorizonHuntervip
· 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.
View OriginalReply0
FlashLoanLarryvip
· 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
Reply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)