1011 Black Swans Surprise the Currency Circle! Trump Raises Taxes on China 100%!

Some traders lamented that the crash was like a repeat of the March 2020 outbreak, making it one of the top 3 most volatile events in crypto history. Panic indices soared to yearly highs, and many over-leveraged retail traders suffered heavy losses in the crash, with many experiencing an unprecedented baptism of fire. Despite the volatility, senior market participants emphasize that this is not the first time such a crash has occurred in the crypto market.

Looking back at history, there was a one-day crash on March 12, 2020 and May 19, 2021, and the market gradually recovered after the subsequent panic.

For experienced traders, the key is to survive and capitalize on the opportunities in a chaotic market!

For ordinary retail investors in the currency circle, the current general view of the industry is that:

1. Leverage control and strict risk control:Do not take the risk of leveraging in a highly volatile market, otherwise it is very easy to get out of the position. Only if you are confident in your own risk control and have a good stop loss and take profit, you can try high volatility trading with a small position, and each contract position is recommended to be no more than 3%~5% of the total capital to control the risk. **Observe the information before operation:** In the face of a sudden plunge, you should first calmly observe the market, do not blindly panic cut meat. At the same time, it is important to track the source of news in a timely manner to determine whether the negative factors have really changed the market fundamentals, as well as the likelihood of the subsequent development of the event, and then decide on the corresponding operating strategy to avoid emotional trading.

2. Focus on quality assets:In times of market turmoil, capital tends to withdraw from speculative fan currencies in favor of mainstream currencies and hot track events with better fundamentals. Currencies such as Solana (SOL), BNB, Aster (ASTR) and OKB, which have been relatively strong recently (with ecological backing or significant benefits), are likely to outperform speculative tokens that are not backed by applications. Retail investors may want to focus on these market hotspots instead of indulging in high-risk gaming assets. Position on the low side but be cautious of chasing orders: Whenever there is a deep and sharp fall, it is often followed by a technical rebound.

Experienced short-term traders will sometimes take advantage of the rebound after a panic and go long at low levels. However, it is important to note that this type of rebound is usually short-lived and should not be held for the long term. Once the price shows signs of rebound, you can considerAdopting a Trailing Stop strategyThe first thing you should do is to set your Stop Loss at the opening price or at a slightly profitable position, to ensure that even if the market goes down again, you won't increase your losses and turn your position into a risk-free one. In this way, there is the opportunity to capture the rebound gains, but also to avoid the market bottomed out twice suffered significant losses.

3. Long-term deployment of the market in batches:For long-term investors who are optimistic about high-quality items, the plunge provides a good opportunity to get to the bottom of the market at a discount. Many mainstream currencies have retreated as much as 20%-30% from their highs, making their valuations relatively more attractive.Fixed Deposit (DCA) Approach to Buy Spot in BatchesThe investment is not a one-off bet. On the one hand, if the price falls further in the future, you can have a bullet to add to your position to amortize the cost; on the other hand, fixed investment can help smooth out the risk of volatility and enhance the stability of your position. Historical experience has shown that when there is an extreme panic selling, rational capitalists who stick to the fundamentals are often able to reap the benefits of the subsequent recovery.

Market sentiment is expected to remain volatile in the near term after this sharp shock. Looking ahead, investors need to pay close attention to the latest progress in US-China trade relations and the impact of the Fed's monetary policy on market liquidity. Until the dust settles, the best course of action is to remain cautious and rational. As one crypto fund manager put it: the current crash is brutal, but for those who are prepared, it may be the next round of opportunities. As long as you manage your risk and wait patiently for the market to stabilize, the turmoil may still bring opportunities for those who are good at learning and controlling risk.