If you just woke up to see Bitcoin on its knees, all your precious alts posting double digits losses and, overwhelmed by panic, you rushed to the computer to sell, just don't.

Truth is that these compensatory movements are not only common, but absolutely necessary, from time to time. If a trend, especially a growth trend, spirals out of control, it may collapse under its own heat, so to speak. So these frightening, albeit necessary dives, are in fact useful. They cool down the markets and support a healthier, more stable growth.

I confess I've been in that panic place a few times, and I know how it feels. Well, maybe not as much with cryptos, because I did a bit of FOREX trading 5 years ago, and when I started to look into cryptos, 3 years ago, I already had a few bruises on my back. So once I changed the EUR/USD charts with Coinmarketcap, it was much easier for me to understand the movements, because there are significant similarities.

But there are also striking differences.

So, in case you just entered this world, here are a few approaches for when the charts are turning all red, and you can almost hear your tokens hitting the floor hard.

Don't Panic

Especially the first hours or days are very difficult, because it seems like the downtrend will go on forever. It won't. Anything changes so this downturn will end at some point. Try breathing in and out. These works for me every time.

Get Relevant Information

Set up a few trusted information channels relevant to your investments and look into them. And only into them. Don't buy everything that floats on social media. People get scared all the time and it's their right to do so. But that doesn't mean you have to believe them.

Diversify

This is the easiest proactive thing you can do to shelter yourself from these storms. Try to have a balanced portfolio because, most of the time, when one major player is hit hard, value just flows into other assets. Diversification alone will offset a lot of your potential losses. As long as you're doing it consistently, obviously.

Buy Yourself Some Treats

This is probably the hardest thing to do of all, because it requires some buffer money into a different store of value, easily accessible. In this case, in fiat. Keeping a small amount of fiat specifically for these situations will greatly pay out. Like, literally. Buying at a discount always feels good, isn't it?

Market Is Always Right

Even if you lose a lot, remember how you felt when you won. And try not to get too cocky. Just because the market moves in the same direction you though it will, for a few weeks, months or years, you may tend to believe that you're entitled to winning. You're not. Market is always right. Accept losses and move on.

And remember: markets can stay crazy a lot more time than you can stay solvent.

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I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.

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You can also vote for me as witness here:
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If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform):

• Rewards: Were Does The Money Come From?
• Netiquette: How To Avoid Being A Steem Douche?
• Witnesses: What Are They And Why Should You Care?
• How Can I Mine Steem And What CPU / GPU Power Do I Need For That?
• The Beginner Guide To Not Getting Hacked On Steemit