Market volatility is nothing new to cryptocurrency traders, but sometimes, it far exceeds the usual swings. For example, during the COVID crash in March 2020, Bitcoin and other cryptocurrencies suffered earth-shattering losses of over 50% in just two days – only to recover to previous levels shortly after.
Following Donald Trump’s announcement of global US tariffs in early April 2025, markets have reacted similarly, with Bitcoin dropping more than 10% and Ethereum over 20% in a single day. While conditions like these pose a significant challenge for many novice traders, it’s not a time to panic.
In this article, we’ll cover five crucial tips to stay safe during extreme volatility in the cryptocurrency market – and potentially even reap profits while others are losing.
1. Stick to great exchanges
As FTX’s spectacular meltdown in 2022 demonstrated, choosing the proper exchange is more important than ever during significant market crashes. Exchanges that mishandle customer funds are highly vulnerable to bank runs, which can quickly lead to withdrawal issues.
Reputable exchanges like LeveX provide a secure environment for your assets while also offering the essential tools to navigate turbulent markets, as outlined in the following four tips. Fully regulated, LeveX 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.
2. Be careful with leverage
When prices are down, some traders may feel tempted to use leverage in hopes of maximizing profits during a bounce. 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.
3. Take advantage of bonuses
As competition among cryptocurrency 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.
4. The trend is your friend
Many cryptocurrency investors support blockchain projects for ideological reasons or because they believe in the sector’s long-term growth. However, 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.
5. Store long-term holdings safely
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. As the collapse of FTX and other exchanges has shown, 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.
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