Extreme Market Survival Rules in the Crypto Circle

The rhythm of rises and falls in the cryptocurrency market can really catch people off guard. This is not alarmist talk; several friends around me have paid tuition during rollercoaster-like market swings—the most unforgettable being the LUNA project collapse.

I have a childhood friend, Lao Wang, who holds 10,000 LUNA tokens. The day before, his account still showed $1 million; before sleep, it dropped 30% to $700,000. He was still full of confidence, saying "UST is just slightly depegged, I believe the developers can stabilize," then went to bed. When he woke up, his account only had $10,000. He was stunned!

Instead of giving up, he doubled down. "This drop must be bottoming out, it’ll rebound to $10 and I’ll turn it around!" He gritted his teeth and invested another $200,000, buying 200,000 LUNA. That night, he watched the market without sleep, seeing the price drop from $1, to $0.1, to $0.0001, then to $0.000001... Finally, it was delisted from the exchange. In three days, $1.2 million vanished into thin air. He lay dormant for a whole week, numb.

Why do such things happen so easily in the crypto world? Honestly, the crypto market and traditional financial markets operate on two different logics:

**7×24 hours nonstop trading**—you might wake up one morning to find your account halved; big moves can happen on weekends too;

**No daily limit up or down restrictions**—a 70%, 80% crash in a single day is not rare; if you don’t react in time, you get wiped out;

**Very low entry barriers**—just verify your identity on an app to start trading; new retail investors keep entering;

**Leverage is everywhere**—10x, 20x, 50x leverage is easily accessible. Over a year, more than 15 days with 20%+ volatility can lead to liquidation in just a few candlesticks;

**Altcoins have no bottom line**—a hundredfold gains are possible, but crashes without bottom are more common. Project teams run away, code bugs, policy crackdowns—any of these can cause a coin’s price to collapse instantly.

Even more terrifying is that extreme market conditions often stack up. In the first few months of 2025, many hot projects suddenly crashed, with hundreds of thousands of investors’ assets evaporating within hours. Leveraged liquidations came one after another, leaving no time for response.

My summarized painful lesson: **Avoid leverage if you can, avoid trash coins if possible.**

According to data, the extreme volatility in the crypto market in 2025 reached 18.6%. What does this number mean? Many who suffered losses actually had the right direction—they just didn’t survive until the rebound and got liquidated. Making money in crypto isn’t about becoming rich overnight; it’s about staying alive. Protect your principal first, then seize opportunities.

Those who survive and profit in the crypto space are always the ones who dare to enter but are more adept at risk control. Leverage is necessary, but set stop-losses; chase hot spots, but control your position size; participate in extreme conditions, but have clear psychological expectations.

Are you ready to survive in the 2025 crypto market with this mindset?