Black Monday is a term used to describe an event in financial markets. It refers to the stock market crash that occurred on October 19, 1987 when the Dow Jones Industrial Average (DJIA) dropped by 22.6%. This was one of the largest one-day declines ever seen in U.S. history and it caused profound disruption across global markets as well as major losses for investors around the world.
In recent years, Black Monday has become increasingly associated with cryptocurrency trading due its volatile nature and high degree of risk involved compared to traditional investments such as stocks or bonds. On March 12th 2020, Bitcoin experienced a similar selloff which saw its value drop by 30% – creating what some have referred to as “Crypto Black Monday” – although this was not nearly so severe nor widespread compared to 1987’s original event on Wall Street..
When investing in cryptocurrencies there are several important steps you can take to protect yourself from any potential future black monday events:
1) Diversify your portfolio: While cryptocurrency may offer higher returns than other asset classes, spreading out your investment among different currencies will help reduce overall risk during times like these when volatility spikes
2) Use stop loss orders: Stop loss orders are automated instructions sent directly from an exchange that allow traders/investors limit their downside exposure should prices start dropping unexpectedly
3) Monitor news & social media platforms closely: Cryptocurrency news sites like CoinDesk provide up-to-date information about price movements and emerging trends within crypto markets worldwide – making them invaluable resources for staying informed at all times
4) Consider buying insurance products if available: Some exchanges now offer customers additional protection against sudden drops through insurance policies related specifically towards crypto assets 5 ) Take breaks and don’t panic sell!: The most effective way of avoiding large losses during turbulent periods is often just taking a step back – allowing yourself time both analyze current conditions objectively before deciding whether or not selling off positions makes sense
