Once again, we have witnessed another flash crash in the crypto market. This time, the Bitcoin price crash led to a 30% loss, wiping out over $12,000 from BTC dollar value. Altcoins failed to sustain their gains as well, as Ethereum price plunged to lows under $2,000 for the first time since April.

The crypto community has been voicing out panic and despair due to huge amounts of losses, with most new traders making the mistake of either not using their stop-losses properly or being overleveraged. While the market continues to mature, cryptocurrency prices could collapse due to bearish news such as China banning Bitcoin — which it has done a hundred times now.

This steep market correction acts as a wake-up call to most speculators, and it teaches us to manage our risks better, be it a bull or bear market. Bullish euphoria is also sometimes met with a sharp decline in prices in the crypto market, as investors start to take profit, driving the market down.

Here are some ways that you can protect yourself from future Bitcoin price and crypto market crashes.

1. Always take profits

Essentially, your gains will not be realized unless you take profits. With every trade that you enter into, always have a price level in mind as part of your strategy to get out of the trade while making a profit.

To do this efficiently, you can use an automated crypto trading platform like CoinPanel to set your take-profit levels ahead of time, without any delay by manually inputting the trade when the asset hits a certain price level.

2. Always use stop-losses

While you need to ensure that you realize your gains, stop-losses are also important to avoid getting wiped out when the market crashes again. You will never know when the next correction comes, so to avoid losing money, you need to set stop-losses ahead of time.

However, when you set a take-profit order on a crypto exchange, your asset balance is automatically blocked for the take-profit order you have already set. To be able to set both take-profit and stop-losses simultaneously, you can use the Full Trade feature on CoinPanel to set multiple levels to take profit and stop your losses. Remember, risk management is an essential part of trading.

3. Stick to your strategy

While it might be easy to panic when the entire crypto market is crashing and trading in a sea of red, it might not be wise to make decisions when you are motivated by your emotions. Whatever your strategies are, including take-profits and stop-losses of course, you should stick to them to ensure you have a proper risk management system.

4. Use a crypto trading automation platform

To put all of this together, using a crypto trading automation platform is the only way to ensure you can prepare better for future crypto market corrections.

You can use CoinPanel for setting stop-losses for cryptocurrencies you have already acquired through an exchange. Additionally, CoinPanel’s Full Trade feature allows you to set all your trades ahead of time, allowing you to be able to manage your risks during a flash crash, but also not lose the opportunity to take profit.

It is important to note that the only options that crypto exchanges allow are either to set a stop-loss, a take-profit, or a one-cancels-the-other order. Neither all of these options enable successful trading strategies in the long run.

Without access to additional tools that would allow you to set take-profit orders and stop-losses simultaneously, you could be left with the only option of setting alerts for different price points for different trading pairs, which is hard to manage.

This is why we built CoinPanel — an easy-to-use crypto trading platform that offers functions that exchanges currently lack, and enables a smooth and efficient process that would allow you to automate your trades so you can sit back and relax.

Check out the CoinPanel platform now!