How to deal with a market crash?

In the comments at the end of yesterday's article, there is such a comment:

"What I am worried about is that Bitcoin is now fluctuating at a high level, while other assets such as Ethereum are still at the bottom. The four-year cycle seems to have nothing to do with assets such as Ethereum, but Ethereum and other assets have plummeted as Bitcoin slightly corrected. The main reason is that there is no innovation. However, Bitcoin is in a bull market this year according to the four-year cycle. By next year, Bitcoin will be bearish, and other assets may fall to the bottom again. In addition, if the US stock market really collapses, assets other than Bitcoin will be terrible. I dare not think about it..."

This reader thought of the superposition of three worst-case scenarios:

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

If the US stock market really collapses, all crypto assets including Bitcoin may not be spared, which is simply adding insult to injury.

Ethereum and other crypto assets are still at a low level. If the above two unfavorable factors are added, the situation will be even more terrible.

I think these three situations are indeed very likely to happen. The fact that these three situations can be added shows that investors are more rational to a certain extent, and they will not be as excited as many people who shout "XX million by the end of the year".

In a more rational situation, the next step is actually not difficult, as I shared in the previous article:

Before taking action, we should try to think clearly about all the worst situations, and then plan how to deal with them when these worst situations occur.

This is how I prepared 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 work.

For example, if Bitcoin rises to $120,000, should we sell it? I won't sell them, because this price is useless. It's not that high, but if I sell them at a high price, it will be difficult to buy them back. Similarly, will Ethereum be sold at $5,000 or $6,000? I won't sell them either, this is also useless.

Unless Bitcoin and Ethereum rise to a very outrageous price, I will probably hold them and not sell them in this round. But if they rise to a very outrageous price, we should just be happy about it and don't take it too seriously.

Since I will probably hold them and not sell them in this round, it means that if the extreme situation of the above three situations occurs, I will probably hold them until the next bull market comes.

And the time of holding them until the next bull market comes is not easy. There will be no brilliant scenery or thriving scenes during this period, and most of the time you will be alone and suffering.

Since there will be such a difficult period in the future, investors should especially think clearly whether the products they hold, 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 survive the hardship and see the light again.

If you can't figure this out in the depths of your soul and hesitate in your heart, it is absolutely impossible to survive the next period of time.

What does "can't figure it out in the depths of your soul and hesitate in your heart" mean?

For example, you believe everything you hear, and then doubt whether XXX is no longer good?

For example, if an institution reduces its holdings, then it doubts whether XXX is going to fail?

For example, if the entire network is on XXX, then it doubts whether XXX is going to fail?

......

There are many more examples like this.

If any of the above examples makes the holder doubt, it means that the holder bought these assets not because he was optimistic about them, nor because he understood them, but because he wanted to speculate, and then in the process of asking around, he heard that there was a ship that would arrive at the "Gold Mountain" tomorrow, and then he boarded the ship without hesitation. As for whether this ship was sending him to the New World to dig gold or to San Francisco to work as a coolie, he had no idea at all.

However, I think it is not a bad thing to sell the varieties and positions in hand because of doubt at this time. It is good to hold the varieties that you are at ease with or simply hold cash and live a normal life.

The most feared thing is that after selling, you will buy it back for various reasons that you hear and believe. This will only make things worse.

If investors have completely blocked the doubts and hesitations mentioned above and believe that the heavily-weighted stocks they hold are valuable and have a future, then the remaining things to do are simple:

Take a look at whether the funds occupied by these positions will not be used in the next few years?

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

If you use all your spare money and it will have no impact on your life in the next few years, then put this investment aside completely, ignore it, and persevere.

No wealth is easy to obtain.

Unless the ancestors' graves are smoking, ordinary people must have qualities that ordinary people do not have to obtain wealth that ordinary people cannot obtain.

How do these qualities come from?

It was tempered through all these hardships.