When BTC drops, what’s your first reaction?
What should I do?
Do you run, or do you keep holding on and die?
When many people buy BTC, most of them don’t know why they’re buying. They just hear from others that it can make money, that it’s valuable, and they buy it right away. After buying, they start daydreaming—thinking every day about prices going up. Their dream is tens of thousands or even millions, and financial freedom!
But once BTC drops:
They start questioning life itself.
They even start asking:
“Have I been scammed?”
They start cursing heaven, cursing earth, cursing the air!
When the price is rising, they think they’re a genius—super good at investing.
Only when it drops do they realize they don’t understand anything at all—there’s absolutely no strategy!
But as an investor, I think the more important question is:
Why did it drop?
Short-term market fluctuations are normal.
When the price goes up:
Everyone is a value investor.
When the market drops:
Everyone starts to doubt the future.
Actually, the biggest enemy of investing isn’t a drop.
It’s more like:
There’s no concept of any investment philosophy or asset allocation!
I’ve always believed that having a plan and your own investment framework is what matters most!
Many people have been investing for years and still don’t even know how many assets they actually have!
How many assets do you have? What’s the liquidity-to-illiquidity ratio? Are the holdings you currently have good chips? Should you optimize?
If I allocate to liquid assets, what percentage should I put into stocks, funds, and bonds?
What kind of asset should you buy?
How much should crypto be in your portfolio?
How much spot? How much contracts?
Where is the buying point for spot?
How long can you hold it?
Under what circumstances do you sell?
Go long or short with contracts?
All these are the questions!
If you buy BTC just because:
“Someone said it will go up.”
Then even a 10% drop will make you panic.
But if you understand:
Why hold?
How much do you hold?
What’s your position size?
Where is your risk?
Your mindset is completely different.
True investing isn’t predicting every rise and fall.
It’s more like:
Stay calm when the market is euphoric.
When the market is panicking, see opportunities.
