Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

Advanced

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

ETH has outperformed, bolstered by SEC Chair Gary Gensler's announcement of his Jan 20, 2025 departure, and suggested by growing open interest in ETH perpetual. This positive momentum extends to several large-cap altcoins previously scrutinized by the SEC, as indicated by bullish funding rates for long positions.

Please check out the report’s highlights.

ETH Open Interest Grows While BTC’s Declines

ETH is outperforming BTC following the announcement of SEC Chair Gary Gensler’s departure, as evidenced in perpetual swap markets. BTC open interest has decreased from last week's highs, while ETH contracts have increased. Additionally, ETH trade volumes constitute a larger share of daily trading as compared to much of the past six months, despite an overall dip in trade volumes this week. The gradual decline in BTC open interest, without a surge in trading activity, indicates a strategic repositioning, rather than a wave of liquidations.

BTC Option Curve Inversion Deepens as Price Retreats

The pullback in the spot BTC price from the $100K target has led to a flat ATM volatility term structure, with short-tenor options dropping below 60%. 

This trend continues the correlation between term structure inversion and BTC spot price returns observed since the U.S. election on November 5, 2024

. The decline in front-end volatility aligns with lower realized volatility levels. While demand for short-tenor options has moderated, there hasn't been a notable change in open interest for calls or puts. Instead, their growth has stalled at the week's start.

Sentiment in ETH options markets seems moderately more bullish than in BTC's during the recent decline in momentum from the post-election rally. Call options lead in both trading volumes and open interest. 

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 27, 2024): Signal on ETH Outperformance Against BTC Surfaces on Long-Term Contracts

Trading

A market correction is a decline in the price of an asset by more than 10%. Though the dip can be fairly small, it usually indicates that the crypto had rallied far from its established trend. Learn how to trade during the correction.

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Corrections make regular appearances with financial markets, especially for crypto. Every crash started as a correction, but not all corrections lead to crashes.

In this article, we’ll discuss what a market correction is, what happens during a correction, and what you should do to prepare for it.

 comprise the bull rallies and bear corrections all of the financial markets. In general, markets never move in straight lines as there’s an ebb and flow, a back-and-forth of pricing that shakes out weaker holders.

Market cycles have been around since the beginning of trading, and this phenomenon continues with Bitcoin and other cryptocurrencies to this day.

The market cycle starts off with the hope that prices will rise. Often, this is accompanied by strong fundamentals, or an asset isn’t widely known to early adoption.

As prices rise, the sentiment changes to euphoria as we begin to believe we are geniuses to have figured out the market. At that point, complacency sets in, and the market is no longer priced at value.

A market correction begins, and initially, investors believe it’s just a dip in the overall uptrend. However, when this correction turns into a bear market, anxiety, denial and panic begin to set in.

Those emotions can be strong, leading traders to close out of their positions when severe losses have already been incurred.

After that, a rebound usually appears and traders become angry that they’ve closed out at the worst possible time.

These emotions are common to both the stock and crypto markets. The biggest difference is that the volatility within the crypto market amplifies these emotions.

A market correction is a decline of ≥ 10% in the price of an asset or financial market. Corrections can span any amount of time lasting from a matter of hours to months — or even years.

The decline is called a “correction” because the dip is fairly small, and usually indicates that the cryptocurrency had rallied too far from its established trend. In the crypto market, corrections are more frequent than with stocks, and can happen within a matter of hours due to crypto’s volatile nature.

Corrections are usually followed by recoveries, but they can lead to more pronounced declines known as bear markets.

Market Correction vs. Bear Market: Differences

Bear markets are larger market corrections, with declines of 20% or more.

A bear market is believed to receive its name from the way a bear attacks its prey by swiping its paws downward. As a result, bear markets are synonymous with downward and falling prices.

The biggest difference between a market correction and a bear market is the depth of the decline. A market correction that’s fairly shallow will have a decline of 10% or more. However, if the decline digs deeper, to greater than 20%, then it’s no longer called a correction but a bear market.

What Happens During a Market Correction 

The most obvious result of a market correction is an adjustment of prices to lower levels. For a variety of reasons, traders and investors feel the current pricing is too high and not worth the risk of tying up their capital.

As a result, current investors decide to sell all, or a portion, of their holdings to lock in profits. New investors who are considering buying put off their investments with the hope of buying them in the future at lower prices.

Declining crypto prices begin to draw in and attract more buyers. These investors are interested, having previously felt that the pricing was too high. Now that prices have declined, they’re motivated to make their investment, and the price rebounds in a rally.

The list of reasons a market correction begins is potentially quite long and debatable. Not every analyst would agree on why the correction is unfolding, and the reasons aren’t always obvious.

A lot of times, the introduction of new, negative catalysts can trigger investors to sell. For example, rumors of a potential war erupting — or a pandemic being declared— can spook investors, causing them to sell.

Notice how the catalyst is oftentimes a rumor. In March 2020, the pandemic was declared and the market crashed. As reality set in, political leaders took action and shut down their economies to keep people distanced. At that point, the markets recovered, even though the economies had just begun to shut down. The correction typically begins on the rumor (pandemic declared, various unknowns) before the action takes place (economies shut down).

Other catalysts for a correction can be fundamental in nature, such as slowing economic growth or monetary stimulus being withdrawn. Without extra discretionary money flowing in, investors will have less money to trade crypto.

Sometimes the market corrects for technical reasons. For example, if the rally is protracted, investors may like the project — but not like the current price. Therefore, they hold back their investment, and the market corrects.

 may signal a correction is about to take place. When a rally has been going on for a while, and then prices accelerate even faster, this could be a sign of too much enthusiasm that alerts the whales and smart money to start selling.

A bull rally needs an increase of buyers. A correction needs only sellers or a lack of buyers. When prices stretch, buyers shy away and sellers are motivated, leading to a correction.

A correction can last any length of time, from minutes and hours to months and years. Ultimately, it’s more about the depth of the decline than the time spent in the correction.

Since corrections are relatively shallow, their durations tend to be relatively short. It’s not unusual for crypto markets to experience 10% or greater movement in a week (and sometimes even in a day!).

As the market starts to decline, it will fall farther away from its high. Eventually, a low is formed, and the market rallies again. We won’t know for sure when the correction is over until the price reaches a new high.

However, technical analysts try to uncover clues that the correction is over, and that a rally is underway to new highs. Analysts will use chart patterns — such as triangles and wedges, combined with 

, like the bullish engulfing or harami — to signal the potential start of a new trend.

What Should You Do During the Correction Period?

At their most basic level, market corrections occur because investors and traders are more motivated to sell than to buy. Every decline starts as a correction. However, we don’t know (until after the fact) if the correction is turning into something deeper, like a bear market or a crash.

Therefore, it’s important to manage trades before a correction appears, and after the correction has begun. Here are three strategies to help give you perspective and a plan through a correction.

This first strategy is based on preparing for a correction. If you see clues for a developing top in the crypto markets, such as bearish candlestick formations or oscillators turning down, then consider reducing your long exposure.

The quickest and easiest way is to sell out of all your positions.

For example, a trader in Bitcoin might notice bearish divergence appearing on the charts. The price of Bitcoin continues to make higher highs, while the 

This type of behavior suggests the market may correct lower.

If a trader notices this on their chart, they can decide to close out their long position in Bitcoin. Another option is to close out only a portion of their position, so that they remain invested in Bitcoin should the price continue to rally.

Whereas the first strategy prepares for a correction, this second technique is geared toward the action to take after the correction has begun.

As the crypto market begins to correct lower, technical levels of support will begin to break. Generally speaking, longer-term support levels tend to hold up better than shorter-term levels. Therefore, when the market corrects, identify these longer-term support levels on your chart and use them as opportunities to buy into the correction.

As Bitcoin rallied during late 2020 and early 2021, there were times when a correction would temporarily consolidate those gains. A trader could use longer-term trend lines, or as in the case of Bitcoin above, a moving average to identify a strong level of support.

 (EMA) applied to the chart. The moving average calculates the price data for the past 50 days (to determine this average price). When the market is well above the line, the EMA suggests Bitcoin is overheated and due for a correction. When Bitcoin returns to the 50-period EMA, this suggests that it’s more fairly priced.

Therefore, a trader could open new buy positions at a longer-term moving average, when a correction is underway.

Trading Strategy 3: Dollar-Cost Averaging

, intended for those traders who are newer chart readers. This strategy will help them remain invested for the long haul — while not getting whipsawed out of good positions.

When you’re HODLing a cryptocurrency, volatility can erupt without notice and erase the floating gains you’re carrying. Dollar-cost averaging (DCA) is a solution to this volatility.

DCA is a way to divide up your total investment, as it initiates regular systematic entries. With DCA, you can lessen the effect of price volatility because sometimes you’ll be buying at higher prices, and other times at lower prices.

For example, let’s assume an investor has $5,000 they want to put into Bitcoin because they feel BTC has a lot of upside potential left in it.

They want to space out their investment, so they decide to invest $1,000 on the first of the month for five consecutive months. This way, they’ll buy $1,000 worth of Bitcoin each month— regardless of what the price is. Here’s a summary of their purchases.

Notice how this trader’s average entry price at the end of five months is $42,925. This figure is only slightly above the price of Bitcoin on August 1, 2021.

The five months of DCA above were during a severe bear market that ripped 50% from the price of Bitcoin. A trader with a $5,000 lump-sum investment near the high could be down 50%. The DCA trader was down about 10%. This is a great example of how DCA can smooth out the volatility in price so each correction becomes less painful. The corrections become less painful over time — because you’re able to buy more coins at a cheaper price.

Crashes in the crypto market are common and normal. If the market is collapsing, the best thing you can do is stay calm. If you’ve had a trading plan since before the crash, then execute that plan. For example, if the plan calls for DCA and buying more at a lower price, then go ahead and move forward with the plan.

If you don’t have a plan, and feel yourself becoming more emotional as prices are crashing — well, remember that all crypto crashes have rebounded. That doesn’t mean that prices will always rebound. Nevertheless, one prominent effect of a crash is to drive weaker hands to sell their coins.

Once they’ve done so, no more traders want to sell — and the price begins to rebound. As this rebound is taking place, begin to make a plan so you’re better prepared for the next time the market crashes.

In other words, when you lose, don’t lose the lesson.

Market corrections are a natural part of financial market cycles. These corrections are needed to bring valuations back in line with longer-term averages and trend growth.

When trading, it’s possible to spot clues to upcoming corrections so you can take action to protect your portfolio. If you find yourself unprepared, don’t panic. The stronger the crash, the more it’s exacerbated by unprepared traders or those basing their decisions in the emotions of the moment. Wait for the rebound to consider how you’ll prepare better for the next time.

What a Market Correction Is & What to Do When it Happens

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