How terrifying are the fluctuations in the cryptocurrency market?
The story of LUNA is truly a blood and tears lesson in the crypto world.
Suppose you have 10,000 LUNA in your hands, and the previous night its market value was 1 million USD. After a 30% drop, you thought to yourself, "The UST depeg is only 10%, it shouldn’t be a big problem," and went to sleep peacefully.
The next day, you wake up to find the market value has become 700,000 USD. You think, "It can’t possibly drop any further," so you invest another 200,000 USD to buy 200,000 LUNA.
You stayed up all night, watching the price in hopes of a rebound, only to see it plummet from 1 USD to 0.000001 USD, ultimately being delisted by the platform. In three days, 1.2 million USD turned into zero.
You finally realize that the rules of the crypto world are completely different from traditional financial markets—24/7 trading, no limits on price fluctuations, low entry barriers, and rampant leverage; especially once leverage is involved, sudden wealth or loss can happen at any time.
Therefore, investing must be done with caution. Leverage is like a bomb in your hands, it can explode at any moment. The market is highly volatile, and you can never control it; never think you can gamble and win.
