what to do (and not to do)
The post what to do (and not to do) appeared on BitcoinEthereumNews.com.
Crash playbook: avoid panic selling, rebalance into BTC, ETH and quality names, buy dips with a plan, harden security, and treat this drawdown as paid education. Summary Step back from the stampede, check what truly changed, and separate real protocol damage from simple repricing in a risk‑off macro tape. Rebuild risk around Bitcoin, Ethereum, and a few high‑conviction assets, using disciplined DCA instead of guessing bottoms or averaging into dead projects. Use the crash as a security and education audit: move long‑term funds to hardware wallets, cut venue risk, and study macro, flows, and funding so the next drawdown feels manageable. When crypto markets crash, most portfolios don’t just dip — they implode. Prices gap lower, liquidity vanishes, and timelines fill with regret and forced liquidations. Instead of joining the stampede for the exit, this is the moment to slow down and rebuild your approach from first principles. Don’t follow the herd Start with the basic question: what actually changed? Projects still shipping code, growing users, and holding cash runways did not suddenly evaporate because price candles turned red. Separate structural damage — protocol failures, fraud, regulatory kill shots — from simple repricing in a risk‑off tape. That distinction decides whether you’re holding a write‑off or a temporarily mispriced asset. Recalibrate risk Next, rebuild your risk stack around assets you can justify owning through a full cycle, not just during hype phases. For many, that means anchoring around Bitcoin (BTC) and Ethereum (ETH), then adding only a handful of high‑conviction names instead of dozens of thin, illiquid bets. Position sizes should be small enough that another 50% drawdown hurts your ego, not your solvency. “Buying the dip” only works if you have a plan and dry powder. Decide in advance how much you’re willing to allocate, at which levels, and…
Filed under: News - @ February 4, 2026 2:26 pm