Have you ever lost so big you thought you couldn’t recover? In this article you will find my biggest crypto investment loss ever – $50,000.00 in the Terra Luna and UST crash – and my learnings from the experience.
Terra Luna’s nosedive is probably one of the most historic events in crypto ever. One of the biggest projects in crypto which lost almost all of its value. The foundational lesson it gives to you is ‘Only ever invest what you are willing to lose’.
Luna was trading at $100-110 and I never paid much attention to it. However, when it started moving down, I decided to investigate what was going on. I was curious as to how low it can actually go.
I didn’t get into Luna until ~$5 (Note that I am a mature high risk investor). I have quite a reserve of stables, and usually these types of risk plays tend to work in my favour. This time it didn’t. A few hours after I invested, the price went down and never recovered thereafter.
This is a classic case of FOMO which I think is very important to consider. Never let yourself be controlled by your emotions when trading. I was about to make another entry at $0.021, but I removed the order. Within 15 minutes it went up to $0.12, which would basically have recuperated my entire loss. That was the exact moment when the spiral of emotions occurred. As soon as it dropped down to $0.015-$0.021, I made an entry. But it never did pump again after that. Once you miss the opportunity, there’s no guarantee that that opportunity might come again.
The next morning I realized that it was game-over. With the amount of Luna in circulation, it will never reach $0.01 again. After the announcement, it did pump up from $0.0002 to $0.0007. You could have made a 3x profit here. However, such scenarios are always accompanied by tremendous risk.
Luna still has a high market cap because of it’s insane supply. Nevertheless, in any way or form this coin, as it is, can not survive. I would not call it a rug pull or anything like that though. It was an unfortunate process where people saw a vulnerability in the setup, took advantage of this and made a lot of money.
It is important to look at it from a learning perspective – how can I gain from this to ensure I do not find myself in a similar situation again. That is how crypto space works – money is not generated out of thin air, for you to win somebody else has to lose (and vice versa).
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