Here are some things we can take away from it.
No matter how appealing a coin appears, never get greedy and go all in.
Maintain a strict asset allocation to avoid becoming overly exposed to a coin or project.
People who went all-in on LUNA 'paid' for it with their life savings.
There is no such thing as enough research in crypto.
Before apeing in, be on a bird watch and research the following diligently.
Terra Luna was considered a blue-chip with a market cap of around $680M, yet it tanked.
Recognize how early and experimental the entire space is. Never, ever believe that your favorite project will never fail.
To be considered a blue-chip, a coin must have been battle-tested for at least two cycles.
Maintain a healthy skepticism.
"When you combine ignorance and leverage, you get some pretty interesting results.”
― Warren Buffett
Many people got caught in the LUNA shipwreck because of leverage.
Dread it. Run from it.
LUNA crashed from $119 to $60.
Then to $30 and it is now trading at $0.0024 and is delisted from the majority of exchanges.
While it's tempting to yell "Buy the Dip!!" and scoop things up as they fall, it's not always a good idea.
Rahul is a former software engineer who is now a writer. After working as a full-stack developer early in his career, he realized that coding was not his forte and began writing blogs, poetry, and articles for sports magazines. He is always torn between Football and Bitcoin as his first love. In his spare time, he enjoys reading books on economics, startups, and business, as well as educating people on personal finance, cryptocurrency, and Web 3.0 on Instagram.