Have you ever experienced those sudden market crashes? The 519 plunge in 2021, or the chain collapse of a major platform last year... In the cryptocurrency circle, extreme market conditions are as common as air. Recently, a friend of mine complained that he was caught off guard by a sudden negative event, and his account shrank by over 400,000 in one day. Now, looking at the candlestick charts, he has no appetite to eat.

I've heard stories like this too many times. But interestingly, the veterans who have survived long in the crypto space are less afraid of these extreme market conditions. The reason is simple—they’ve already thought through what to do when a black swan appears.

**First Trick: Keep Your "Life-Saving Fund"**

Many people’s logic for trading crypto is very straightforward—invest all their spare money, even leverage up to fight for bigger gains. But what happens? When a black swan hits, they don’t even have a chance to adjust. My approach is completely opposite: no matter how hot the market is, I always reserve 30%-50% of my funds. This money acts like insurance—something you absolutely cannot touch.

What’s the benefit of this fund? When prices plummet, while others are cutting losses and giving up, you can position yourself at the low points, significantly reducing your overall cost. Or if your stop-loss is triggered, this fund becomes your ticket to re-enter the market. Simply put, risk reserve is your anchor in extreme conditions—having it keeps your mindset stable.

**Second Trick: Don’t Put All Your Bets on One Coin**

The concept of diversification is well-known, but few can truly do it. When I say diversification, I don’t mean buying dozens or hundreds of coins—you wouldn’t even be able to manage your own positions that way. True diversification looks like this: your main capital might be allocated to top assets like ETH, but you should also leave room in other areas—perhaps some promising small coins with good fundamentals, or stablecoins as reserves. The benefit is that even if one sector encounters a black swan, your overall health bar won’t drop to zero instantly.

The key is to avoid an "all-in" mentality. I’ve seen too many people make a little profit on one coin, then think they’ve found the secret to wealth, and go all-in. Then, an unexpected market move wipes out all their gains and even eats into their principal. That’s not investing; that’s gambling.

**Third Trick: Set Your Psychological Defense Line**

This is the most easily overlooked but also the most critical. In extreme market conditions, the first thing to collapse is often not funds but mindset. My approach is to think clearly before entering—how much can I lose at most? Am I willing to accept that loss? If I hit that limit, what will I do? I ask myself all these "what if" questions in advance.

Then, execute stop-loss orders. Many people treat stop-loss as "giving up," but that’s a huge misconception. Stop-loss isn’t admitting failure; it’s stopping further losses when you realize your judgment might be wrong. Black swan events often happen like this—sometimes, once you’re wrong, there’s no rebound, only quick stop-loss to preserve your ammunition.

**Bottom Line Thinking**

The crypto space is full of opportunities, but also full of risks. The difference often lies in whether you’ve prepared for extreme market conditions in advance. Those who survive long aren’t necessarily because they predict the market perfectly, but because they always leave themselves an escape route. Risk reserves, position diversification, psychological defenses—these three things seem simple, but few can truly stick with them.

Next time a black swan appears, will you still be caught off guard, or will you be fully prepared? The choice is in your hands.