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[Josemendez]

Impairment loss in Crypto happens when a liquidty provided see a temporary loss in the value of his supplied asset. He may at first generate a LP token from two coins amount to $500 ( $250 each ) . When there is a drop or a rise in the price of one of the token, his total worth will be affected. What is the best way to overcome such lose. Withdrawing when the LP is high leads to impairment loss because you will have lesser value of the coin that rose compared to what you supplied initially .

How best can one minimize impairment loss ?

 

[Kubiat-Abasi]

To me the best way to avoid impairment loss well trading on cryptocurrencies is to adopt the swing method of trading in that, you skip some days you do not spend all your time on reading the chart and curves, give yourself a break! Also, you should use a stop loss method to curtail indecisiveness and losses.

 

[Wisdom01]

The best way is to use the average method of investing ,like don't invest all your money in the platform ,you would have to keep some amount ,so you could have some money and you buy at every possible dip as at when the price starts dropping ,you watr patiently and you tend to avoid loss little nny little ,till I start making more profit too

 

[Jessie Wellington]

To me I think the best way is to invest less and make sure you keep watch to avoid lossing. Watch it when coins are dropping for you to buy and invest, not always investing daily and also keep record of all your investments

 

[dorcasy]

To me the best way to avoid impairment loss well trading on cryptocurrencies is to adopt the swing method of trading in that, you skip some days you do not spend all your time on reading the chart and curves, give yourself a break! Also, you should use a stop loss method to curtail indecisiveness and losses.

What if it happens such that the moment you take a trade,the market will go against you,we know that swing trade works in respect to ripple movement but at some point it can break the zone of support and resistance which can result in loss,thus to prevent such reoccurrence it's good to apply trailing stop loss.