The importance of loss cutting in Bitcoin investment is essential for capital preservation, psychological stability and long -term investment success.
Volatility management: Prevention of rapid drop risks
- BitcoinHigh volatilityIt is famous. It can drop more than 20-30% in the short term, which can lead to unexpected losses when the loss is not set.
- Example: If you have plunged 76% from $ 65,000 in April 2021 to $ 15,000 in November 2022, it may take years to recover if there is no loss.
Emotional decision prevention: Protection of investment psychology
- The larger the loss, the more FOAR of Missing Out (FOMO)HopefulIt is more likely to be eager to make an irrational decision (additional buy, indefinitely holding).
- The lossPlanned strategyIt blocks emotional intervention to induce cold judgment.
Capital preservation: securing reinvestment opportunities
- If you protect the remaining capital with a lossNew investment opportunityYou can respond flexibly.
- Example: 30% of capital can be redistributed to low -cost or other assets (Ethereum, stocks, etc.) with the remaining capital.
Long -term strategy establishment: Risk/reward balance
- The lossRisk managementIt is the core tool of. GenerallyRisk/Reward ratio 1: 3It is recommended (for example, 10% loss risk vs 30% revenue target).
- Welfare effectCapital savings are essential for. It prevents 100% revenue from 50% loss.
How to establish a loss strategy
- Technical analysis base:
- When breakthing of the support line (e.g. 200 -day moving average line) and ATR (Average Division) set twice.
- Personal RISK Allowance:
- 1 ~ 5% loss of single investment compared to total capital.
- Event response:
- Immediately responded to news occurs such as strengthening global regulations and hacking exchanges.
Common errors and precautions
- Ignore the loss: If you give up the plan with the belief that "someday will go up," the risk of bankruptcy increases.
- Overdue: Cumulative and opportunity losses occur when the volatility is swept away.
- Trail: If you have already lost a big loss, the meaning fades.Preliminary plan required.
Examples of practice: loss application case
- March 2023 (bank crisis): When Bitcoin breaks the $ 25,000 support line and falls to $ 22,000, investors who have been lost for $ 24,000 preserve capital when they have fallen $ 16,000 and use them for $ 17,000.
Conclusion: Strategic damage = Law of survival
In Bitcoin Investment, loss does not recognize failureSmart risk managementno see. Since the market is unpredictable, it is at the heart of long -term success to set up a loss price in advance and compliance thoroughly.