Lana 3 Questions 0 Answers 0 Best Answers 40 Points View Profile0 Lana Asked: December 26, 20192019-12-26T00:07:54+00:00 2019-12-26T00:07:54+00:00In: Business & FinanceWhat to do when the crypto portfolio is down?0When the cryptocurrencies are not doing well and heading down, what should be done? Should I sell it?Cryptocurrency ShareFacebook 1 AnswerOldestAnthony 0 Questions 2 Answers 0 Best Answers 70 Points View Profile Anthony Level 1 2019-12-26T00:16:55+00:00Added an answer on December 26, 2019 This answer was edited. Do nothing: In most cases, you should wait and be patient. Make sure that you do your technical analysis and have taken a position.Re-evaluate your risk tolerance: Make sure that you reassess the risk tolerance, not based on emotion/feeling but through careful calculation.Look at the big picture: Evaluate the bigger picture from both technical and fundamental aspects.Research the fundamental reasons why the crypto is down: Make sure that why your portfolio is down. Not just the technical, but what factors are driving the trend such as back off of investors, regulation, scam etc.Consider hedging: You can use various available tools for hedgingDiversify within crypto assets: You should rebalance the portfolio by selling one currency which is not performing well for buying a better one. Most currencies are exposed to similar risks.Diversify across other financial assets: It can be a type of hedging. You can use assets such as bonds shares to distribute risk.Add precious metals to the portfolio: Gold is particularly easy and saves to help you mitigate the risk.Exchange with better crypto: You can swap the one which is not doing well by buying the one which has more potential. Again this would need thorough analysis.Strengthen your current position: Even you should buy more if you think that the fall is a short term and there will be rebound. Warren Buffett is famous for buying more of a falling stock at cheaper prices when the markets drop.Absorb the loss or quit: If you cannot absorb the losses, you can consider quitting the market.0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Remember Me! Forgot Password?