What should I do with my holdings during a price drop?
During a price drop, consider your investment strategy and risk tolerance. If you're a long-term investor, you might view it as a buying opportunity—buying assets at lower prices. However, avoid panic selling, which locks in losses. Assess whether your holdings align with your goals and diversification plan. Consider dollar-cost averaging by investing fixed amounts regularly regardless of price. Ensure you have an emergency fund separate from crypto holdings. If you borrowed money to invest (leverage), monitor liquidation risks closely. Review your portfolio's overall health rather than reacting emotionally to short-term volatility. Consult your investment thesis and adjust only if your fundamental outlook has changed.
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