How Should You Handle Crypto Assets When The Market Crashes?

By on

Cryptocurrencies are the most volatile currency on the market present today. No one can perfectly figure out their movement. One day they will be soaring up, but the next day, the market will be red. There could be a lot of reasons behind a red market, i.e., the market sentiments, the news, the crypto cycles, inflation, and the world's geopolitical situation.

Recently the market has lost more than half of its worth. In November 2021, the market's overall price was 3 trillion dollars, which has fallen to 1 trillion dollars. The giant coins like bitcoin and Ethereum are trading at 18 months’ low prices. The market sentiments are also terrible. The reasons for this lousy market are the world’s geopolitical situation, inflation, the bad sentiments in the market, and some regulations on cryptocurrencies.

But you can hardly control these reasons. All you can control are your crypto assets. The red markets have a lot of potential opportunities if you know the ways to handle the market. This article will show you how to take advantage of the red market? How to manage your assets? How to be more productive in this crash?


HODL simple means hold on for dear life. It is one of the classic strategies used in the digital market. When the market is red and crashing, you buy certain coins, and you do not sell them immediately, not even for profit. The holding strategy is not for weeks or months; the investors sometimes hold the leading coins for years.

Compare the price of bitcoin in 2010 with that of 2021. In 2010 its price was not more than 1 dollar, and in 2021, its price was 64k dollars. If you had invested 10 dollars in 2010 in bitcoin, you would have more than a million dollars in your pocket. This is how the HODL strategy can benefit you.

But you should note that not every coin is worth holding; some are short-term, and some are long-term coins. If you want to HODL, you should go for the long-term coins. In this crash, many long-term coins can give you a handsome profit if you buy them now and HODL them for a few years.

Buy in parts

No one knows precisely how the market will behave the next day. You are wrong if you think that the market is red today and it probably would be green tomorrow. Because the market can go down more than you think it can. In such a situation, you do not need to buy the coins at once when the market is red. You have to invest appropriately.

For example, if you have 100 dollars and the market is red, do not invest all of the 100 dollars. You can invest 25% in your favorite coins. Do not invest the rest of 75%. If the market greens, you can sell the coins for profit, but if the market goes red more and more, you can invest 25% more and wait for the market. If it still goes down, you can invest 10% more. In this way, you would buy coins at meager prices.

And when the market goes to normal, you would have earned quite a good amount of profit. Never invest 100% of your portfolio. This is the best way to handle your crypto assets in this crash.

Do not panic sell

Suppose you bought a coin, and its price decreased by 20%. You go to Bitcoin Motion, observe the chart thoroughly, think it might fall more, and sell it. That is an actual loss because no matter what happens to the market next, you would have lost 20% of your portfolio. If the market goes upward, you may think of rebuying the coin because it is the human psyche to be more ambitious.

And buying at higher and selling at lower prices can make you a bad investor. So do not panic and sell your coins. Try to read the market sentiments, the news, and the overall market before deciding to sell your coins.


The crypto market is very volatile. No one can control the crashes and the red-green markets. All you can do is adequately handle your crypto assets. You can also benefit from a red and crashed market by properly managing the assets.

Join the Discussion