How to Survive the Crypto Drawdown
377: Outsmart the Sell-Off & Protect Your Assets in the Wild West
Good morning lords.
Or is it?
Today is going to be a more serious post, one that I felt was necessary given what we have seen unfold in crypto markets in the last week or so. In the past 24 hours, 292,955 traders were liquidated in crypto markets, the total liquidations comes in at $869.18 million (Coinglass). The recent ByBit hack saw over $1.5 billion in Ethereum stolen which makes it the largest crypto heist in history. Bitcoin fell to $92,000 yesterday, Ethereum dumped, and many alts/memes are down astronomically.
Security and emotional management is going to be of utmost importance moving forward, those who haven’t earned their stripes in crypto yet have a chance to in this environment.
Most folks are probably starting to pucker up, some are probably down pretty bad right now.
The uncertainty surrounding the Trump Administration, potential tariffs, and the economy is clearly weighing on investor sentiment and chopping prices or dragging them down this week. On top of that in crypto the space has been plagued by yet another wave of hacks and celeb scam tokens that make the space feel less serious than some already feel it is.
As someone who’s been in this space almost 8 years — the bullish undertones are obvious, but in classic crypto fashion, you need to chop through the noise to see the long term trajectory and not let your short term emotions shake you out of position.
Many people leave crypto early because they focus too intently on short term noise. They overtrade, they fall victim to easily avoidable traps, or they bandwagon on the latest “thing” because they want to take shortcuts as opposed to sticking to basic strategies that work.
Then they get cleaned out.
Today is going to be a comprehensive guide to:
crypto security
how to keep your crypto assets safe
crypto strategies that will help you ascend above the short term noise (profit taking, asset allocation, what to look for moving forward)
which specific assets I see “making it” in the long term (it’s fewer than you think)
I would ask that you share this post with everyone you know in crypto who isn’t a current reader. There are vital security and safety tips in today’s post that everyone should take to heart. On top of that — there’s some crucial lessons I have learned from being in the space for 8 years.
Those who have subscribed to premium for some time know that these are valuable ways to get all critical information in one space — I am not going to mince words or try to protect feelings today, will just lay it out like it is.
So far Arb Letter’s track record speaks for itself and I intend to keep it that way today with a realistic and sobering summary of what people need to be considering and doing to gain an edge in the market.
We are going cover my no bullshit opinion on what’s going to take place in the rest of 2025 and 2026 in crypto and markets. There has never been more noise and bullshit in the crypto space — we’ve got countless rugs, ponzis, exchange blow ups, clown influencers, and more distracting people with pointless scams and time wasters. Kanye is set to launch his meme coin which might be the blow off top for Solana Fuckery as Solana gets murked.
Markets are at a critical juncture — some fear we are going to continue selling off and some sincerely belief we’re going to get a relief rally and pump higher on the equity front. Liquidity is one of the main concerns for crypto, as confidence has been rattled by the recent hack and equities are wobbly at best with the exception of a few outliers.
Crypto has decoupled from equities in a bad way and it’s been awhile since we have seen crypto move on it’s own without bullish legacy markets news. I think that will come again soon but for now everyone’s on edge. Fear is rampant.
Good news is the pointers we will cover today will allow you to profit and protect your capital in both market conditions described.
It will take time for the dust to settle, but it will happen, and when it does those who took the time to allocate properly and take basic precautions will be the ones who come out on top and profit.
Experienced investors and traders don’t panic when markets pull back they plan and they take advantage of prices and lacks of attention to get squared away for inevitable reversals.
Simple.
“In the midst of chaos, there is always opportunity.” Sun Tzu, 'Art of War'
Where to Next?
So the first question is — are we about to lose a metric shit ton of money or is a rebound coming in the short term?