Trading in the crypto world: Buy more as it falls, or stop loss decisively? 99% of people chose wrong!

"Buy the dip when it falls!" vs "Not setting stop loss is equal to waiting for death!"

Trading in the crypto world is always an ultimate battle between the 'buy on the dip' camp and the 'decisive stop loss' camp. Some people buy more on the dip and eventually earn a lot with a full position; some people stop loss in time to avoid deep losses. But who is right? Buy more on the dip or stop loss is the way to go?

Today, we use data and practical experience to thoroughly dissect this issue!

📊 1. Buy more as it falls vs stop loss, the data tells you the truth!

Let's first take a look at the historical data to see which strategy is more successful in the end.

✅ Long-term trend of Bitcoin: Since 2009, Bitcoin has risen from $0.003 to $100,000, an increase of over 30 million times.
✅ Bear market fall statistics:
• 2013-2015 Bear Market: BTC fell from $1163 to $152, a fall of -87%.
• 2017-2018 Bear Market: BTC fell from $19800 to $3122, a fall of -84%.
• 2021-2022 Bear Market: BTC falls from $69000 to $15452, with a fall of -77%.

Conclusion: If you buy more as it falls at the low point of the bear market, the ultimate return is very high! But the question is, can you really wait for the bull market to return?

🔍 2. Advantages and disadvantages of buying more as the crypto world falls versus using stop loss!

📉 1. The more you fall, the more you buy (value investment flow)

✔ Core logic: "High-quality assets are not afraid of falling, as long as they are held for the long term, they will definitely be able to break even!"
✔ **Scope:** Mainstream coins like Bitcoin and ETH with long-term upward trends.
✔ **Successful Case:** Bought BTC for $3000 in 2018, rose to $69000 in 2021, multiplied by 23.

🚨 Risk: If you buy LUNA, FTT, or 💩coin, they won't rise back up after falling!

👉 Suitable for people:
Investors with long-term faith, able to withstand significant drawdowns.
• Only buy mainstream assets (BTC, ETH), don't touch air coins.

⛔ 2. stop loss dispatch (risk control flow)

✔ Core Logic: "Survival is the most important!"
✔ **Applicable scope:** Contract trading, short-term speculation, high-leverage trading.
✔ **Successful case:** In 2022, stop loss BTC at $69,000, re-enter at $15,000 to avoid being halved in losses.

🚨 Risk: If the price rebounds after the stop loss, it may sell off and may not find a suitable buying point again!

👉 Suitable for:
• Short-term traders with limited funds cannot afford significant falls.
• Strict trading discipline, willing to take small losses for big wins.

📈 3. So, which strategy is the right one?

Answer: There is no absolute right answer, it depends on your trading style!

🎯 If you are a value investor (long-term holder of BTC/ETH) → Buy more as it falls!
🎯 If you are a short-term trader (high leverage, speculation on altcoins) → you must have strict stop loss!

But regardless of the strategy, you must adhere to the following trading principles:
1️⃣ Don't overweight a single asset, allocate positions reasonably!
2️⃣ Don't go all in with leverage, adding leverage in a bear market is suicide!
3️⃣ Whether it's "buying more as it falls" or "stop loss", you need to have a trading plan!

📢 How do you see it? What is your trading method?

💬 Are you a "fall more buy" or a "decisive stop loss" type? Which strategy suits you better?
🔥 Do you have any successful (or failed) trading experience? Feel free to share!

📌 Follow me to see through the true underlying logic of crypto world trading! 🚀#币圈观察员