For Spot trading, it’s safe just buy crypto when it’s super down and sell when it’s up, Why I said spot trading because In spot trading there will be no chance of losing all deposited amount.
If you use Leverage then there’s a chance that the amount could be zero since you deposit less amount while trading on a Big Volume using Leverage.
For example, you have a Leverage of 1:100
You deposited 50 USD
So you can trade on 50:100 = 5000 USD
It means you deposited only 50usd but you can open a trade on 5000usd however you’re account will be active until -50 only after that your account will be washed if the market will against you.
In the Main time while trading on Spot, you can only buy the specific instrument with the amount you have.
For Example, you deposit 50 USD
And Your Leverage is 1:1 mean zero leverage
So here you can only buy the 50 USD Crypto so even though it will go down you’re all amount could not be zero since you just bought a minimum size and it has no leverage
It is just like same you bought a house so even though it will go down in the market but it will be still under you’re name, You can sell it at a low price or wait until the market will be stable.