Six Strategies to Help You "Preserve the Green Hills and Always Have Firewood" Amid a Market Crash
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Six Strategies to Help You "Preserve the Green Hills and Always Have Firewood" Amid a Market Crash
The formula for bottoming this bull market: major cryptocurrencies + major Memes.
Navigating Web3 tides with focused insightsAuthor: Viee, Core Contributor at Biteye
Editor: Crush, Core Contributor at Biteye
"Be greedy when others are fearful." After yesterday's turmoil, is now the right time to enter? Here are six suggestions from a seasoned crypto veteran:
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Bull market bottom-feeding formula: blue-chip tokens + top-tier Meme coins
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Avoid leveraged trading, especially futures contracts
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Set stop-losses promptly; here are several stop-loss strategies
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Dollar-cost average into positions
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Avoid excessive portfolio diversification
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Hold sufficient stablecoins
01 Bull Market Bottom-Feeding Formula: Blue-Chip Tokens + Top-Tier Meme Coins
Sharp market drops or major corrections often present the best "buy the dip" opportunities. However, it’s advisable to accumulate gradually rather than go all-in at once. Focus on investing in established blue-chip cryptocurrencies and popular Meme coins.
Meme coin bottom-feeding strategy: High-volume, consistently trending Meme coins often follow a relatively predictable pattern.
After reaching an all-time high (ATH), such tokens typically do not retrace more than 60%. This suggests strategic buying opportunities when:
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The token has pulled back 40% to 60% from its ATH
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Trading volume remains high
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Market discussion and interest remain strong
Take WIF as an example—its maximum drawdown after ATH was approximately 59%. This strategy leverages the volatility and sentiment dynamics inherent to Meme coins.
However, risks remain. Meme coins can surge rapidly but also crash violently. Proceed with caution and complement this approach with technical analysis and market research.
02 Avoid Leveraged Trading, Especially Futures Contracts
The reason is simple: liquidation can wipe you out completely. Coincidentally, today Synthetix’s former chief financial officer, SynthaMan, revealed on X that he lost all his SNX tokens due to a margin liquidation.
Secondly, while holding through downturns may sometimes work, funding fees are often overlooked costs. Lastly, futures trading negatively impacts emotions and psychology, which in turn harms trading decisions.
03 Set Stop-Losses Promptly—Here Are Several Strategies
If a position breaks below a key support level or no longer aligns with your investment thesis, don’t hesitate to sell and protect your capital.
It’s better to accept a small loss than risk a catastrophic one. When market conditions improve, you can always re-enter. The key is practicing risk management early in a downturn—not waiting until losses deepen.
This is especially critical when trading highly volatile "junk coins." Poor timing or strategy can lead to severe losses—or even total loss of investment.
In practice:
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Fast stop-loss: Act quickly when the market moves against you, accepting minor losses. For instance, a 5% loss is manageable.
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Partial stop-loss points: You don’t need to exit entirely at one price. Instead, set multiple exit levels, selling portions incrementally. For example, if Bitcoin drops below $60,000, sell 10% of your holdings.
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Flexibly seek re-entry points: If the market reverses, buy back in when support is reconfirmed. If the decline continues, re-enter at lower prices for better cost basis. While this incurs some transaction costs, it effectively controls downside risk.
Ultimately, accepting a 5% loss to avoid a potential 50% drop is actually a smart and prudent strategy.
04 Dollar-Cost Average Into Positions
Going all-in on a bottom call might leave you regretting later. Combine technical and fundamental analysis to identify several potential entry points—such as historical support levels or key moving averages.
As price reaches these predetermined levels, begin accumulating gradually, reducing purchase amounts in a pyramid-like manner. Set stop-losses for each buy-in to manage risk, and adjust your strategy dynamically as market conditions evolve.
05 Avoid Excessive Portfolio Diversification
Concentrate your investments in 10 tokens (maximum 20) that you truly believe in, rather than spreading too thin across numerous assets. This makes active portfolio management easier during volatile markets.
The more different tokens you trade, the higher the likelihood of incurring losses. Over-diversification can drag down overall portfolio performance, especially during sharp market declines when managing too many positions becomes impractical. Avoid holding excessive altcoin positions.
06 Hold Sufficient Stablecoins
Keep at least 20% of your portfolio in stablecoins. This serves as "ammunition" to seize opportunities during downturns without being forced to sell existing holdings at unfavorable times.
Even during bull runs, holding a portion in stablecoins ensures you have liquidity ready to act when the market corrects.
If you can't remember all these rules, just remember this: preserve your principal and survive. That’s the most important thing!
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