Recently, an investor confided in me about his predicament: during the process of Ethereum's price falling from $4800 to $3600, he held his entire position and endured for two months, anxiously watching the price movement every day. This situation reminded me of my experience three years ago when Bitcoin fell from 60,000 to 30,000. In my panic, I cut loss, missed the rebound, and ended up trapped after chasing the price, losing half a year's savings in a month.

These experiences have made me deeply realize that in the cryptocurrency market, getting out of a trap is not simply about 'holding on and waiting for a rebound', but requires the use of the correct methods to cut loss and rectify mistakes.

Most investors tend to fall into two extremes when faced with being trapped: either they frantically increase their positions, leading to an overly heavy load that may ultimately result in liquidation; or they blindly trust the advice of so-called 'experts', holding on with the mindset of 'if I don't sell, it doesn't count as a loss', which results in even greater losses. In fact, the market shows no mercy to anyone, and emotional trading is often the biggest risk.

Based on my experience, I have summarized a three-step method to get out of being trapped, which has helped several investors successfully escape their predicament:

Step 1: Calmly assess. When you find yourself trapped, the first thing to do is to stop all operations and take 10 minutes to objectively analyze the current situation. Key questions to consider include: Are you holding mainstream coins or niche tokens? If it's the latter, you need to carefully evaluate the project's progress, community activity, and team dynamics. At the same time, calculate the ratio of the trapped amount to available funds; if it exceeds 1.5 times, you need to consider cutting your position to free up some funds.

Recently, I encountered an investor trapped in the predicament of small-cap coins. The project's team has not updated progress for three months, and the community is filled with advertisements, which are all dangerous signals. In this situation, making a decisive Cut Loss may be a wiser choice.

Remember, in the cryptocurrency market, rational analysis and emotional control are key to success. Don't be troubled by short-term fluctuations, but focus on long-term value and risk management.