In this video, The Art of Crypto explains how traders can recover from a 30‑40% altcoin market dump by adopting a contrarian mindset, monitoring funding rates, keeping a portion of capital liquid, and applying disciplined risk management. He argues that when the market is fearful (red), traders should be greedy and buy oversold dips, using tools like RSI and price‑drop thresholds (10‑30% within an hour) to spot bounce opportunities. Funding rates on Binance futures are presented as a reliable gauge of market sentiment: rates above 0.1‑0.5% signal excessive greed and a need to become fearful. The speaker draws on grand‑strategy principles (Sun Tzu) to stress the importance of knowing the environment, thinking several steps ahead, and only taking the top 1% of trade setups, such as double‑top/bottom or rounded‑bottom patterns. He recommends keeping at least 25% of the account liquid (he personally keeps ~60%) to capitalize on regular market dips, and stresses small, consistent position sizes to avoid catastrophic losses. Risk management is framed as the single differentiator between the 5‑10% of successful traders and the 90% who lose money, with advice to aim for modest daily gains (1‑5%) that compound over time. The video concludes with a call to watch a separate risk‑management video and follow his Twitter for additional trade setups.
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What's up everybody, welcome back to The Art Of Crypto, the birthplace of absolutely legendary gains. Now if you've been paying attention to the market, you know that we just went through a massive, massive dump of about 30 to 40% on most altcoins. Now what do we do from here? Now this video is going to be more about some things that you can do to prevent future things like this from happening. And first off, we have to start off with mindset. See, there is a saying that when the market is greedy, you have to be fearful, and when the market is fearful, you be greedy. So at the moment, the market is extremely fearful right now. So much red. That is when you should be getting the most excited. Now is not the time to be scared. Now is the time to be excited. Buy up all these dips. These are discounts. Imagine right now, eGold Dropped all the way to 125. 125 is literally February prices for EGLD. Imagine if you would have bought it there, you would have had a 60% bounce. 60%! Can you imagine? You do only one thing, and that is buying oversold bounces. You will be so, so successful. Now, what do I mean by an oversold bounce? Literally, within an hour, you are looking for the price to drop more than 10, 20, 30%. That is An oversold bounce. Look, RSI here, really, really oversold. This is when you want to get in. Now back to the topic of the video, we are getting into mindset. So just to give you a little bit of an insight as to how I usually think about the markets, here is number 1. I always look at funding rates. Just go on Binance, go to your futures, and check the funding rates. Usually the funding rates are a very good indicator of when the market is getting greedy or is it getting fearful. If you see the funding rates are above 0.1% or 0.2%, heck, even 0.3, 0.4, 0.5, that is the time when you need to get really, really fearful. So just to give you a quick example, for the last 2 weeks, literally for the last 2 weeks, for the whole month of April, the market has been amazing. Look at this. From the start of April until right now, everything has only been going upwards. You know what this means? It means everyone is getting way too optimistic. Everyone is thinking, hey, it's been green, it's gonna go green, it's gonna go even greener. And that is the trap that you do not want to fall in. It's very simple to see when the market is getting greedy. When the market has been green for an extended period of time— I'm talking about 2, 3 3 weeks, maybe even a month. That is the time when you need to get really, really scared. That is the time when you should be taking profits on your alts, just like I did, just like what the smart money would do. And do you also know when the smart money begins buying? It is when the market dips. See over here? This is where the smart money is getting in. This 50-70% drop, that is when the smart money is getting in. So When your position is like $80, $100, you wouldn't worry about these kinds of a dip, right? And when your position size is $100, imagine if you— from $100, if you go all the way up to here, that is 150% gains. Would you not take profit? Now again, I know everyone is really greedy, right? In crypto, 10x gains are extremely possible, but they don't happen in the span Of one month, or maybe even two weeks. Heck, perhaps that is possible. But you have to be ready for a blow-off top and for everything to come crashing down. So again, keep an eye out for funding rate. Now, just to give you a little bit of insight about myself, I am a big fan of grand strategy. And if there is one saying that is really popular in grand strategy, it is a saying by a grand strategist known as Sun Tzu. He was from ancient China. And his favorite quote was that, know thyself, know your enemy, 100 battles, 100 victories. Now, what— how does this translate over to you? Simple. Before you even get into the markets, you have to identify your environment. You have to know what is the market conditions like. If the market's really good, then yeah, you can expect your coins to bounce, to go up by quite a bit. But If the market conditions have been good for way too long, that is when you need to start getting fearful. You do not get in on coins when they are already pumping by more than 100% in a week. That is not when you get in. That is where you look to short the market because you want to think differently from how everybody else thinks. Think differently from how the 95% think, and you will be the 5% that comes out on top. Hey, before I forget, for those of you who have been waiting for me to make a Twitter, here it is: _TheArtOfCrypto. This is where I'll be sharing my trading Setups that I don't have time to make a video on. So if you want to make massive amounts of money in crypto, just drop me a follow on _theartofcrypto. Peace. Now just to give you an example, I was telling my group already a few days earlier to not play it too risky because the markets have been getting good, and I was expecting a market dip to happen soon. And here we are. And here is another thing to think about: when there are profits, I want you to take them. Don't keep holding them and expect the price to go up by another 100-200% from where you are. Eventually it will, but always take a look at the market conditions. When you see the markets be as good as they are right now, you have to be cautious. Take some profit. You can always buy back in lower. Imagine if you would have taken profit at say $180, you would have missed the move from $180 to $240. But that's no big deal because you would have bought way down here. You would have had the liquid funds available to buy way down here, and at the moment you would be up 30, 40, 50, 60%. You get the idea. So what is my point here? You want to think ahead of everybody else. I have a saying that I give to myself, which is think like a grand strategist. Heck, even my TradingView username is called The Grand Strategist. So what does it mean by that? It simply means I want to think 1, 2, 3 steps ahead of everyone else, right? If you notice in my technical analysis videos, I'm always calling patterns that have not formed, but I'm taking the possibility of it forming various different patterns into account. Say perhaps when EGLD was at this point right here, I would have said that this might be looking like a rounded bottom. And at the moment, this is a rounded bottom. In fact, this is a double bottom pattern. So essentially, you want to try to front run the markets. You want to see patterns forming before they form. So right here, one peak, this peak, the moment I see this red candle right here, this would have been a double top for me. This would be when I would start taking profits. Double tops means that it's starting to shift in direction, similar as to how a double bottom means that the direction is shifting from down to up. Double top means from up to down. It is as simple as that. So what is the second thing that you can do other than thinking like a grand strategist and to predict the market? And to take a look at the market, notice when it's getting greedy and take profits, or notice when it's getting fearful and buy in. So what else can you do other than that? And the second thing is to always keep a part of your account liquid. So a good rule of thumb would be to always keep 25% of your account liquid at all times. At all times, yeah. Your money doesn't need to be in a trade at all times in order for you to make money, because there is a saying. That 90% of traders are losing traders. So imagine this, as long as you don't lose money, wouldn't it make sense that you would be ahead of 90% of the herd? It's just food for thought. So in a bull market, as long as you're not losing money, you are already ahead of 90% of the herd. That's why you don't need to play big position sizes, cuz small gains compound over time. So imagine if you would have kept 25% of your account liquid right now, how many discounts could you get? See, just based on like— I can just go on a random, random chart, right? Imagine if you would have bought FLM at 6 cents, CTK at $2. Look, this is a massive, massive dump. Imagine if you would have got it here. Imagine if you— the last time CTK was here was almost 3 weeks ago, and since then it went up by almost 100%. So imagine if you would have gotten a chance to buy it here. This is why you keep a portion of your account liquid at all times, right? I know it feels weird in the beginning, but when you stay in the crypto markets for a while, you notice that these market dips happen almost very regularly. In fact, almost every month, 2 months, it will happen. So you keep those funds especially for occasions like this, and you will make such a killing. In fact, What I do is I keep about 60% of my account liquid at all times. I don't take many trades, but when I do take a trade, it always ends up in about 50 to 100% returns. And I'm not talking about spot over here. And that is the mindset that you wanna take. Now, there is another saying in grand strategy that is a favorite of mine, and it goes like this: he will win who knows when to fight and when not to fight. So with this kind of a mindset, you only filter out the best of the best trades available. You don't take any random trade that pops up. You only take the best of the best, and you make those count. That is a strategy that I found works brilliantly for me. I'm essentially doubling my money every two weeks to a month, and I'm very happy with that. I know some people are ten x-ing their accounts every month to two months, and I just have to say this: I'm happy with my gains. I'm happy with what I'm achieving, and The best thing about my approach is that it's very safe. I don't have to stress about anything. I don't have to look at the charts. I just know that the direction is set and I just have to go in and I can be in the trade fully confident that the charts will go in the way that I'm predicting it to. That is the beauty of filtering out 99% of trades and only going in on 1% of them. And that is the mindset you need to cultivate if you want to be successful in trading. Because honestly, seriously, It's not about always being in a trade. If you are always in a trade, imagine if 100% of your account was in a trade right now. You wouldn't be able to take advantage of this. Yeah? Now, if you're enjoying this video so far, if you watched all the way here, you are a tough one because not a lot of people would click and watch this video until this point. But if you have, you have gained so much. And if you like this video so far, I would highly, highly appreciate it if you could just pump the like button to the moon. It's a small gesture, but it helps a lot. And most importantly, I want you guys to go watch my risk management video because it gets into a lot of things that you wish you would have known before you got caught in this market dip. 95— I bet 95% of people just got liquidated, and I hope you're not one of them. But if you are one of them, you would have been safe if you watched my risk management video. So right now, I want you to go watch that video. And remember, think like a grand strategist. Think ahead of 95% of people, right? If you think like 95% of other people, you're gonna get results like them, right? Think ahead of them. The markets, especially the crypto markets, it's not as complicated as you think. There are a lot of noobs in this market that, that absolutely do not know what the hell they're doing. So it's very easy to take advantage of them. When the markets are getting really greedy, get out because the noobs are gonna get wrecked. And when they do get wrecked, that is when you get in. I'm sorry, but I'm not sorry. Sometimes you just have to be smart. You just have to think ahead of the herd. And most importantly, risk management. Don't go with overly large position sizes because if you did lose money here, if you lost 90%, 100% of your account in this one single trade, you would be absolutely screwed, right? If you lost 90% of your account, you would need 900% gains just to get back to where you were. So keep your risk low. Just if you can take one thing away from this video is think ahead of the herd. Don't be like everybody else. But another thing is to always manage your risk. Risk management is the one ingredient that is going to separate a successful trader from the 95% of the herd that is losing money. Because you have to understand this, 1% every day is 37x over the course of a year. You don't need big, big wins in order to make money in crypto. If all you do is get just tiny incremental gains, you would be ahead of so many people. In fact, if you could just do 5% a day, 2% a day, it's very possible in crypto. Imagine how much profits you would have. So take those small wins. Don't go in with overly large position sizes. You're just gonna get wrecked. And with that, if you have any questions, just feel free to drop it in the comments. If you lost money, hey, it's okay. The crypto bull run is still in full swing. Everything is just gonna go up. This is the financial opportunity of a lifetime. There's no reason to panic. And if you lost money, I understand, I've been there. But this is a good opportunity for you to invest in yourself, learn from your mistakes, improve your skillset. Because right now we are in a market. In a market, we are trying to take other people's money. So doesn't it make sense that if you wanna be able to take other people's money, that you have to be better than them? Doesn't that make sense? Now if it does, I want you to go watch that risk management video, right? And with that, may the gains be with you, my friend. Peace. Peace.
