Crypto Survival Diary: Lessons from the LUNA Crash and How to Thrive in a Volatile Market

One Night Back to Zero: The Collective Scar from LUNA In May 2022, the crypto market witnessed one of the biggest disasters in history: LUNA plummeted from $119 to nearly zero in just a few days. Not gradually, but a “free fall.” Some people carried their entire wealth, hundreds of thousands to millions of dollars, and in just three days, they had enough for breakfast. Initially, they believed “the team would save the project,” then started buying the dip, averaging down, and finally watched the exchange delist it and their accounts drop to zero. That shock was not just about money. Many people lost sleep, felt anxious, and dared not open trading apps. Crypto has no concept of “limit down,” no rest time. The liquidation mechanism and leverage are like a sword hanging overhead – you know it’s there, but always think it won’t fall on you. Why Does Crypto Make Many People “Fear”?

1. The Emotion Amplification Machine: FOMO And Panic When the market rises, social media is flooded with profit-sharing images. FOMO (fear of missing out) makes people rush to buy at the top. When the market crashes, fear spreads faster than the decline itself. Everyone sells, everyone runs, creating a “stampede” effect. With LUNA, the de-pegging of UST triggered a death spiral. The algorithmic mechanism combined with herd mentality turned panic into reality.
2. 24/7 Market: No Time to Breathe Stock markets have trading hours. Crypto runs 24/7. Just one bad news at midnight can wipe out an account. Many stay awake watching charts, nerves stretched tight, and the more tired they are, the easier they make wrong decisions.
3. Leverage And Liquidation: The Prey Map In derivatives markets, liquidation levels are almost public. When many traders use high leverage, a small price push can trigger a chain of liquidations. Think 5x leverage is safe? The market always knows where the most orders are stuck. What Have Survivors Done Right?
4. Using Discipline to Counter Emotions Stop-loss principle: Accept a maximum risk of 1–2% of total capital per order. No averaging down on losing positions: LUNA shows that “holding onto hope” often ends in disaster. Capital management: Never “all-in.” Profits can grow pyramid-style, but losses must be cut immediately.
5. Using Support Tools, Not Emotions Monitor Fear & Greed Index: Below 20: market is overly fearful, possibly over-sold. Above 80: high euphoria, risk of bubble. Confirm signals across multiple timeframes (4H, D1) to avoid short-term noise.
6. Long-Term Thinking, Avoiding “Get Rich Quick” Traps In reality, most account blow-ups are due to short-term trading with high leverage. The longest-surviving traders are usually patient, diversify their capital wisely, and let emotions guide them less. Personal Opinion: Crypto Has No “God,” Only Survivors In crypto, many projects operate based on community trust and consensus. When prices rise, everyone believes in the future. When prices fall, trust collapses in a flash. Therefore: Don’t use living expenses to invest in crypto.Don’t borrow or leverage to “bet your life savings.” When a major event occurs, it’s safer not to catch the falling knife than to try to buy the bottom. If you experience consecutive losses, take a few days off. Psychology is just as important as strategy. Conclusion: The Market Is Always There, The Key Is That You Are Still There LUNA is not the first crash and certainly won’t be the last. High volatility is the nature of crypto. The only thing you can control is how you react: Use discipline instead of emotions.Use strategy instead of luck.Use risk management instead of hope. The person who makes the most money is not the bravest, but the one who is smart enough to survive during market madness. The market is always there. Make sure you are still there to enter the next cycle.