Many people panic when the market crashes, but this is actually a test of a trader's fundamental skills.

Recently, I looked at a friend's account, and his holdings were so green they were glowing. He was anxious to sell everything. I asked him, "Do you know what this is called? This is wealth redistribution."

**The essence of panic is a lack of understanding**

Every big decline doesn't mean a true collapse; it’s the market reallocating funds. Looking at history: when the Federal Reserve raises interest rates and liquidity tightens, institutions don't run away; they shift money from risk assets to scarce assets like gold and Bitcoin. If you follow the trend and sell during this time, you're actually giving cheap chips to those waiting.

I pulled up some trading records from a few years ago to show him—three nights of major crashes, others were crying and closing positions, but we were taking the opposite approach. The final profit of 450,000 USDT came from this. It’s not about being brave; it’s purely about doing the math.

**Major declines reveal the true quality of projects**

On the other hand, during market drops, I tend to focus even more because this is the best "screening mechanism":

- **Mainstream coins** (Bitcoin, Ethereum) recover the fastest after big drops; institutions have already quietly entered at low levels
- **Altcoins** show clear differentiation: projects riding hot topics collapse quickly, but those with real ecosystems (like AI projects within the Solana ecosystem, tokens with practical applications) can survive and find new support levels

At this point, you don’t look at the price; you look at which projects still have people maintaining the order, updating products, and expanding their ecosystems. Good projects never stop developing just because the price drops.

**To sum up**: When others panic, the smart ones are doing the math and making their choices.