How to deal with the market crash?

In the message at the end of yesterday's article, there was this one:

"What I'm worried about is that the pie is now fluctuating at a high level, while other assets such as Ethereum are still at the bottom, and the four-year cycle seems to have nothing to do with assets such as Ethereum, but assets such as Ethereum have plummeted with a slight pullback in the pie, the main reason is that there is no innovation, but the pie is a bull market this year according to the four-year cycle, and next year the pie is bearish, and other assets may fall to the bottom again. In addition, if the U.S. stock market really crashes, then the assets other than the big pie will be miserable, and I dare not think about it......"

This reader comes up with a superposition of the three worst-case scenarios:

If Bitcoin turns from bullish to bearish next year, it will drag down the crypto ecosystem (including Ethereum, of course), which has not even entered the bull market.

If the U.S. stock market does crash, all crypto assets, including bitcoin, may not be spared, which is simply worse.

Crypto assets such as Ethereum are still at a low level, and if you combine the above two unfavorable factors, the situation will be even more miserable.

I think these three scenarios are really likely. The superposition of these three situations shows that investors are more rational to a certain extent, and they will not be so excited as many people shout "XX million at the end of the year" at every turn.

In a more rational situation, in fact, the next processing is not difficult, or I shared in the previous article:

Before we do it, we try to think through the worst-case scenarios and then plan how we will deal with them when they happen.

Here's how I prepared it myself:

First of all, the trend of this round of market is very difficult to grasp, which means that the previous method of selling when the valuation of Bitcoin and Ethereum is too high may not be useful.

For example, if Bitcoin rises to $120,000, will it be sold or not? I won't sell it, because this price is a chicken rib, and it's not too high, but if you sell it and want to buy it back, it's hard. In the same way, will Ethereum be sold for $5,000 or $6,000? I won't sell it either, it's also a chicken rib.

Unless Bitcoin and Ethereum rise to a very outrageous price, I will probably not sell them this round. But if we want them to go up to a very outrageous price, let's just be happy about this kind of thing, and don't take it too seriously.

Since there is a high probability that I will not sell them in this round, it means that in case the extreme situation of the above three situations is superimposed, I will probably hold them until the next bull market comes.

And holding them until the next bull market is not a good time. During this period, there will be no splendid scenery, there will be no thriving scenes, and most of the time it will be a lonely struggle.

Since there will be such a difficult period of time in the future, investors should especially think about whether these varieties in their hands, especially those with large positions (such as Bitcoin and Ethereum), are valuable and have a future?

In my opinion, this is the fundamental and key to surviving the suffering and seeing the light again.

If you can't think about this in the depths of your soul and hesitate in your heart, it will definitely be impossible to survive the next time.

What does it mean to "think clearly in the depths of the soul and hesitate in the depths of the heart"?

For example, listening to the wind is rain, and then wondering, is XXX not good?

For example, the institution has reduced its holdings, and then wonders, is XXX not good?

For example, the whole network is in XXX, and then I wonder, is XXX not good?

......

The list goes on.

If any of the above examples make the holder suspicious, it means that the holder buys these assets not because he is optimistic about them, let alone because he understands them, but because he wants to speculate, and then in the process of asking around, he heard that there is a ship that will arrive at the "Golden Mountain" tomorrow, and then he desperately got on the ship. As for whether the ship would send him to dig for gold in the New World or to work as a coolie in San Francisco, he had no idea at all.

However, I don't think it's a bad thing to sell your varieties and positions because of suspicion at this time. It's nice to be down-to-earth and take your peace of mind or simply take cash and let yourself live a normal life.

The most fearful thing is to sell it and buy it back because of all kinds of wind and rain reasons, so tossing back and forth will only be worse.

If investors have completely shielded the above doubts and hesitations, believing that these heavy positions in their hands are valuable and future-proof, then the rest of the work is simple:

Let's take a look at the funds occupied by these positions, whether they will not be used for the next few years?

If you have some money to use, then sell some of your positions to ensure a good life first.

If all you use is spare money and it will not affect your life for the next few years, then put this investment aside completely, ignore it, and stick to it.

No wealth is easy to come by.

Unless there is green smoke on the ancestral grave, ordinary people must have qualities that ordinary people do not possess in order to obtain wealth that ordinary people cannot obtain.

How did these qualities come about?

It was honed in this kind of suffering.