TL; DR
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After Monday’s crash, Bitcoin is up 8%, Ethereum up 11% and Solana up a whopping 20% – but such black swan events tend to take weeks to recover (not days).
Full story
If you’ve never fallen out of a tree after your older cousin said he’d destroy your Nintendo 64 if you didn’t reach the top in five minutes…
Lettuce explains how it works:
You rarely fall straight down.
Normally you bounce between the branches and make swinging holds before encountering the harsh, unwelcome embrace of the ground.
The same usually applies to black swan market crashes like the one we are in now.
After Monday’s crash, Bitcoin is up 8%, Ethereum up 11% and Solana up a whopping 20%.
That is cool!
But did we hit a tree branch or solid ground?
We are not here to give a definitive answer, but a warning…
Because you may be experiencing intense FOMO right now.
‘If I had bought in when everyone was panicking, I would have been way up! I don’t want to miss any more wins…time to make it 100x long.” – you probably.
This is a great way to break down.
So before you go in, remember:
Such black swan events tend to take weeks to recover (not days).
Check out all the tree branches we came across in 2020 before we mostly ground them sideways months:
The takeaway:
If you can’t stop yourself from entering the market, the safest way to do so is through dollar-cost averaging (buying a little each week).
If the devil on your shoulder has a gun to your head and forces you to take on leverage (borrow money to buy more crypto), here’s how to mitigate the downside risk:
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Low leverage
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Low position size
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Stop losing tighter than the skinny jeans you wore in high school
Okay, that’s it – be safe out there people!
