Why a "mild" crash can hurt more than a brutal one ⚠️
Past cycles lost 75%+. Today $BTC is about 38% off its peak. So everyone says "relax."
Here's what that comparison hides. The recovery you need grows faster than the loss:
-20% needs +25%
-38% needs +61%
-50% needs +100%
And traders who feel safe tend to buy more, add leverage, or average down with money they can't afford to lose.
Survival checklist:
Size positions so a deep crash hurts but never ends your journey
Skip leverage and borrowed money during a drawdown
Set position size before you buy
Backtest your plan on past winters first
Verify first. Risk later...
#Bitcoin #CryptoTrading #RiskManagement
Past cycles lost 75%+. Today $BTC is about 38% off its peak. So everyone says "relax."
Here's what that comparison hides. The recovery you need grows faster than the loss:
-20% needs +25%
-38% needs +61%
-50% needs +100%
And traders who feel safe tend to buy more, add leverage, or average down with money they can't afford to lose.
Survival checklist:
Size positions so a deep crash hurts but never ends your journey
Skip leverage and borrowed money during a drawdown
Set position size before you buy
Backtest your plan on past winters first
Verify first. Risk later...
#Bitcoin #CryptoTrading #RiskManagement