Bitcoin, Ethereum Plunge 10%, 20% on US Tariff Announcement

Market volatility is a common occurrence in the cryptocurrency trading world, but sometimes it can reach unprecedented levels. For instance, during the COVID crash in March 2020, Bitcoin and other cryptocurrencies experienced significant losses of over 50% in just two days, only to recover to previous levels shortly after. Similarly, following the announcement of global US tariffs in early April 2025, Bitcoin dropped more than 10% and Ethereum over 20% in a single day. While such conditions pose a significant challenge for many novice traders, it’s not a time to panic.

In times of extreme market volatility, it is crucial for traders to adopt strategies that can help them navigate the turbulent waters safely. Here are five essential tips to stay safe during such periods and potentially even reap profits while others are losing.

Firstly, choosing the right exchange is paramount. The collapse of FTX in 2022 highlighted the importance of selecting a reputable exchange that handles customer funds responsibly. Exchanges that mishandle funds are vulnerable to bank runs, which can lead to withdrawal issues. Reputable exchanges provide a secure environment for assets and offer essential tools to navigate turbulent markets. For example, LeveX is a fully regulated exchange that allows users to trade popular cryptocurrencies through both a browser and a mobile app, supporting spot trading, futures trading, and secure holding for greater peace of mind.

Secondly, traders should be cautious with leverage. While platforms like LeveX offer up to 10x or even 100x leverage, using the full extent of this feature can quickly lead to significant losses. In the highly volatile crypto market, price swings of 5–10% are common—and with 10x leverage, such moves can wipe out positions in an instant. Leverage isn’t inherently bad, but it’s crucial to choose the right margin based on current market conditions and your risk tolerance.

Thirdly, traders can take advantage of bonuses offered by cryptocurrency exchanges. As competition among exchanges intensifies, many newer platforms offer generous bonuses to attract traders. These bonuses often come in the form of matched deposits credited as futures trading funds—essentially giving you free 2x leverage on your capital, up to a certain limit. For example, LeveX offers a 1:1 match on new deposits up to $5,000 as a welcome bonus for new users. While these incentives can boost your trading power, it’s important to use them wisely and avoid overleveraging.

Fourthly, traders should remember that the trend is their friend. During prolonged market downturns, it’s important to remember that there’s nothing noble about losing money. Trading against the prevailing trend can lead to significant financial setbacks. Sometimes, shorting the market is simply the smarter move – even if you’re bullish on crypto in the long run. Advanced platforms like LeveX offer powerful tools to manage short positions, including trailing stop-losses, conditional orders, and low borrowing fees. As long as you stick to solid trading fundamentals, shorting the market is nothing to shy away from.

Lastly, if you truly believe in the future of crypto despite the potential for a prolonged bear market, your best move may be to buy the assets you believe in at low prices and transfer them to a cold wallet. The collapse of FTX and other exchanges has shown that the safest place to store your cryptocurrencies is still an offline, self-custodial wallet. Fortunately, in 2025 there are plenty of secure and user-friendly options available—from free paper wallets to mobile apps and dedicated hardware wallets like Ledger and Trezor. If you don’t plan to touch your crypto for weeks or months, it’s best to move it to a secure location now—so you can sleep soundly, even during the most turbulent market conditions.