What Do You Learn From FTX and LUNA Collapse?
Knowing what you are doing is one of the most important things when you take any financial decision. What you don't understand, it is better not to put your money there, no matter how lucrative that looks. In this bear market, we saw a dramatic collapse of FTX and LUNA, and they went out of the picture.
So what do you learn from FTX and LUNA collapse?
LUNA was one of the top ten cryptos back then. Many people invested their hard-earned money in LUNA and UST. But it ended up pretty bad. When you see any cryptocurrency in one of the top positions, it does not mean investing in that crypto is safe. A lot of cryptocurrencies that you saw in the top line disappear from their position over time.
DCA is a good strategy that you can follow to make an investment. You select an asset and keep buying over a period of time. You don't pay attention to the price, you think about the long-term potential and usually hold your asset for the long term. Dollar Cost Averaging (DCA) is not some sort of magic that will save you from losing money in crypto.
If you decided to do DCA in LUNA and kept buying while LUNA's price was crashing, you can realize how much money you would lose. DCA is definitely a good strategy, but what asset you choose to buy is one of the most important things. If you don't pay attention to this, you may get rekt at any time.
Have you ever thought FTX would end up like this? FTX appeared to be the strong and most trusted crypto exchange. . Crypto influencers, news media, and investors talk about FTX and you think FTX must be good.
FTX created that image with money and connections. Investor Kevin O’Leary showed his confidence that how much you can trust FTX, but many people did not know that Kevin O’Leary was paid $15 million in total for doing what he was doing. So you cannot expect anything negative about FTX from promoters.
So how much did crypto influencers and news media sites receive from FTX? That's a huge amount. Well, you cannot overlook the donation that SBF makes to the political party. FTX was good at creating a good image in crypto. You cannot believe everything you hear in crypto. It is true that you are dealing with high risk when you get involved in crypto.
If you see any rumors about a crypto exchange, it is better to transfer your fund from that exchange as soon as you can. You cannot ignore that putting a level of FUD. The thing is, anything can happen when you keep cryptocurrency in crypto exchanges. Maybe you are trading cryptocurrency, so you have some crypto in exchanges.
You should be always careful because you don't hold private keys while having crypto in any centralized crypto exchange or crypto platform. People who did not have crypto in FTX or withdraw quickly before the collapse of FTX are safe. Every time that reminds you in crypto is, not your keys, not your crypto.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
Image Sources: 1, and 2.
References: 1.
About Me
Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. I'm glad to meet amazing people all over the world.
Follow me on Twitter
Watch my videos: 3Speak, DTube, and YouTube.
Posted Using LeoFinance Beta
For reasons like those stated in your post, which I think are right, is that once we think about investing, it is better to analyze the value of a blockchain project, what is behind it. Guided by advertising or media and networks, it is never safe. It is always necessary to investigate in depth.
Yes, doing your own research and analysis can save you. You should ask questions and never take action without due diligence.
Posted Using LeoFinance Beta
I think it's better to reduce your risk on any platform and diversify out. Choosing solid projects and keeping a good hand over your crypto will also be important. I think there were just way too many people who thought FTX was fine despite all the money they were shilling out due to all the big names jumping in.
Posted Using LeoFinance Beta
FTX made promotions like crazy and did extreme stuff. That's why we saw positive signs everywhere. News media The Block CEO Michael McCaffrey was forced to resign after being caught taking a total of $43 million loan from Alameda Research.
I agree with you, @jfang003. You have to manage your risk, otherwise, it is tough to survive in crypto.
Posted Using LeoFinance Beta
I learned that no one will listen with their ears when they have greed in their eyes I called out both these ponies long ago you can check the time stamp on my blog no one cared
Now I am just here to watch the pain lol
Most people praised FTX and LUNA back then. Few people were concerned about their moves.
You went hard on calling out LUNA and different projects.
I think that comes from a place of love. You speak out and warn others so that they can see and don't fall into a trap. Thank you :)
Posted Using LeoFinance Beta
https://twitter.com/925678630436401152/status/1603754250365915136
The rewards earned on this comment will go directly to the people( @rezoanulvibes ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.