Lessons from the "Legendary" Crashes of the Cryptocurrency Market

5 AM, the global market is in turmoil. The trading screens are flooded with red: Bitcoin falls below 105,000 USD, Ethereum breaks through the 3,600 USD mark, and a series of altcoins plummet. Another “major crash” arrives, leaving many investors stunned as their accounts evaporate by hundreds of thousands, even millions of USD in just one night. Over the past 7 years, the crypto market has witnessed several crashes referred to as “mythical” – moments when greed, fear, and delusion alternately dominate investors' minds. From Boom Days to Nightmare Collapse The period of 2017 - 2018 saw the market gradually enter a frenzied craze. In just one week, there were nameless coins that skyrocketed up to 100 - 200 times, turning small investments into colossal assets. That craze led many to believe that crypto was the fastest way to get rich in modern financial history. But right after the days of prosperity comes a series of devastating crashes. From 2018 until now, the market has repeatedly followed a similar pattern: excitement – peak – panic – decay. In each cycle, undisciplined investors get caught up in that whirlwind, only to pay the price with their own assets and trust. 3 Survival Principles in a Harsh Market After many shocks, seasoned traders have distilled three basic survival rules – the “death limit lines” in crypto investing: Don't bet everything on one coin. The collapse of LUNA in 2022 is a typical example. Millions of investors lost everything in just a few days by putting all their capital into a single project. The lesson learned: no coin is worth more than 20% of your investment portfolio. Always set a stop-loss order (stop-loss). The crypto market fluctuates every minute, every second. A timely stop-loss order can save an entire account. A stop-loss is not a failure, but a self-rescue before it's too late. Don't bet on emotions. The mentality of “holding on until recovery” has trapped many people for years, like the case of EOS - a coin that was once highly anticipated but never returned to its previous peak. In crypto, hope is not a strategy. The True Ruthlessness of the Market Crypto is not ruthless because it makes people lose money; it is ruthless because it once allowed them to taste wealth before dragging them down to the depths of despair. It strikes at the most primal emotions: greed, fear, and blind faith in the “next cycle.” In today's investment communities, the slogan “buy the dip - all in - high leverage” is still being shouted. But behind each of those statements are countless accounts being “liquidated”, restless nights, and the emptiness felt by those who have “gained” and “lost” in just one click. Conclusion The cryptocurrency market is not for dreamers. It is a place where discipline and risk management determine survival. A person who understands the market is not someone who always wins, but someone who knows when to withdraw. And the biggest lesson after each “bloody red” is still: don't let the market teach you again the things you once knew — at a higher price.