🔐 FUNDAMENTAL LAWS AND SECRETS OF THE CRYPTO MARKET
🔥 Around 40 billion USD vanished in just a few days in May 2022 after the collapse of the Terra/LUNA protocol, which had promised returns of around 20% per year.
⚖️ Law: The market is cyclical: winter always follows euphoria
💥 Real-world example: In May 2022, the Terra/LUNA protocol collapsed after promising returns of around 20% per year: the UST stablecoin lost its peg to 1 USD, while LUNA plunged to almost zero, wiping out around 40 billion USD.
💡 The market is cyclical, and winter always follows euphoria: Bitcoin's historical declines from its peak were around −85% in 2014–2015, around −84% in 2018, and around −77% in 2022.
🧮 How much the market needs to move to liquidate you
▪️ The price movement against you that wipes out your position:
▪️ x5 → ~20% · x10 → ~10% · x20 → ~5% · x50 → ~2% · x100 → ~1%
▪️ In practice, it happens even sooner: maintenance margin and fees eat into your buffer
📐 Formula: Liquidation ≈ 100% ÷ leverage
🛡 How to protect your money:
1️⃣ Account for market cycles and the risk of deep declines
2️⃣ Don't believe promises of exceptionally high returns
3️⃣ Don't invest in protocols without a reliable audit
📌 Saifedean Ammous — The Bitcoin Standard, 2018
⚠️ Not financial advice.
💰 Millionaire Habits
$BTC
#BinanceSquare #крипта #биткоин #investing
🔥 Around 40 billion USD vanished in just a few days in May 2022 after the collapse of the Terra/LUNA protocol, which had promised returns of around 20% per year.
⚖️ Law: The market is cyclical: winter always follows euphoria
💥 Real-world example: In May 2022, the Terra/LUNA protocol collapsed after promising returns of around 20% per year: the UST stablecoin lost its peg to 1 USD, while LUNA plunged to almost zero, wiping out around 40 billion USD.
💡 The market is cyclical, and winter always follows euphoria: Bitcoin's historical declines from its peak were around −85% in 2014–2015, around −84% in 2018, and around −77% in 2022.
🧮 How much the market needs to move to liquidate you
▪️ The price movement against you that wipes out your position:
▪️ x5 → ~20% · x10 → ~10% · x20 → ~5% · x50 → ~2% · x100 → ~1%
▪️ In practice, it happens even sooner: maintenance margin and fees eat into your buffer
📐 Formula: Liquidation ≈ 100% ÷ leverage
🛡 How to protect your money:
1️⃣ Account for market cycles and the risk of deep declines
2️⃣ Don't believe promises of exceptionally high returns
3️⃣ Don't invest in protocols without a reliable audit
📌 Saifedean Ammous — The Bitcoin Standard, 2018
⚠️ Not financial advice.
💰 Millionaire Habits
$BTC
#BinanceSquare #крипта #биткоин #investing