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Twelve lessons learned from the terra crash

2022-05-14 16:34:22The way of defi

This is me from  Terra Luna Lessons learned from the crash .

First , I need to stress that , This is not a “ I'll tell you what to do ” The topic of .

  • I investment The combination has 5% Your position is Luna
  • My portfolio has 15% Your position is UST

I quit last night at a loss .

I wrote this content mainly to share how I updated my encryption based on the events of the past few days currency Of investment theory .

Avoid personal worship

Of these cryptocurrency items founder Through personal charm 、 Strength and mastery meme And become popular .

Soaring token prices and strong partnerships make their words more authoritative .

But what's the problem ?

That is, the past success of these people will lead to their narcissism and arrogance .

We are Frog Nation、Solidly、Node Projects And now, Luna I see this in my body .

These founders are not good at accepting criticism .

These founders and their followers will choose to attack anyone who criticizes what they are trying to build .

 Stable currency

This is probably the most mentally retarded topic I have read in the past decade .
If the topic is too stupid , Silence is a perfectly acceptable choice .
The billionaire among my fans , Go for it , See what happens

There is no healthy room for debate here

We see @banklesshq,@gametheorizing,@JackNiewold,@algotrading And other encrypted accounts because of criticism Terra And was raped by everyone .

This forms an echo chamber .

There are fewer voices of doubt , because “ It's not worth dealing with those crazy followers ”.

Risk management

I'm shocked at how many people “ Lose all your money, all warehouse Soha ” Into the Luna and Anchor Agreement on .

Eggs can't be put in one basket , You should never devote yourself to anything .

Any assets , Whether cryptocurrency or non cryptocurrency , There is no guarantee that their value will always exist .

 Stable currency

Here's everything you need to know about cryptocurrency risk management .
From business 、 Risk management framework for trading and poker
What you don't even realize DeFi The risks in the process
Reduce risk without sacrificing too much revenue

Create your own system

My own system has a rule : No one has more tokens than my portfolio 15%.

I UST Your position has never exceeded... Of your total position 15%.

If it weren't for this rule , I will allocate more funds to UST and Anchor agreement .

Create your own rules , This can protect yourself from emotions and prejudices .

The blind spot of the ecosystem

  • They hold Luna
  • They hold Stable currency yes UST
  • They are in  ETH  and  AVAX  As collateral

In their own eyes , They are diverse .

They didn't realize they were Terra The risk in the ecosystem is too high .

When Terra Crash Time , Their portfolio also collapsed .

 Stable currency

What is blue chip cryptocurrency ?

I thought before Luna and AVAX It's blue chip cryptocurrency .

But I was wrong .

A cryptocurrency needs to go through at least two cycles ( And on the rise ) To become a blue chip cryptocurrency .

at present , The only blue chip cryptocurrencies are bitcoin and Ethereum .

( Don't get me wrong , I still like AVAX)

Don't try to lick the blood on the blade

Luna The price is from 85 The dollar fell to 50 dollar , Then it goes down to 20 dollar , And now its price is 0.07 dollar .

Try to use “ A relatively cheap price ” Copy the bottom Luna Maybe it's tempting , But you're actually comparing its real-time price with its highest price in history , You think the price of the currency will rise .

Irons , When the price of currency falls rapidly , Get out of the car .

 Stable currency

Now buy LUNA It's the best risk return ratio deal I've seen for a long time . It may return to zero , But if it doesn't return to zero , You may find bargains at crazy prices . This is a deal with or without , But I think it's a smart deal !

Do not use levers

Many old coin circles were ruined overnight because they used leverage .

People always think they can repay to maintain a healthy rate .

  • We see that Luna How fast are prices collapsing
  • Bank runs cause network congestion

So don't use leverage , There is no exception to this .

 Stable currency

The risk of stabilizing the currency

I mainly hold UST、USDC  And some of the Dai As my stable currency position .

I should diversify my stability currency , But I didn't do it , Because I want to keep it simple .

I will spread my stable currency more to bUSD、Frax And other stable currencies .

Every stable currency has its own risks :

  • USN It's a new project
  • USDC It's centralized
  • USDD It's sun Yuchen's project

The best way is to diversify your stability currency , Spread out the risks as much as possible .

I intend to limit the maximum amount of each stable currency to 5%.

The stability coin will continue to be attacked

Some people speculate that this time Luna and Ust The crash was right UST Coordinated attack .

If this is true , Then it is expected that there will be more attacks against the stable currency in the next few years .

Centralized power does not want decentralized money to succeed .

You need to adjust your risk accordingly .

Beware of the risk of founders with black history

Everybody knows , Anonymous founder's projects are risky .

I underestimated the risk of founders with a black history , They may have done some shady things anonymously in the past .

 Stable currency

SCOOP:Terra Of @stablekwon yes “Rick Sanchez”, He was early The algorithm stabilizes the currency The failure of the @ BasisCash  Anonymous co-founder of .
@skesslr and @realDannyNelson reports

“ Big but not overwhelming prejudice ”

  • Terra It's the top 10 currency by market value
  • It is supported by a lot of top venture capital , Such as Sanjian capital /Jump Capital
  • They and AVAX、Lido  And countless other companies

In my submission Terra Become too big to fail , Especially in 5 month 21 Japan UST After the anchor is released , The project side fought a defense war , after UST Restore anchoring .

" ha-ha , We should be the biggest believers in bitcoin or Ethereum "

The copycat wants to take advantage of this opportunity to kick off the mountain stronghold Public chain The player .

In the past year ,Solunavax And the operation of other new public chains is incredible .

If you invest in them early and make a profit , You'll get something .

There are some survivors here .

It depends on when you buy , Where do you make a profit , And what money you invested .

I like bitcoin and as a store of value , But not to maximize profits .

This can be summarized as your own investment style :

  • Want a simple way to invest ? You can average the cost in dollars ( Fixed investment ) Buy bitcoin and Ethereum , And forget about it , See again in a few years .
  • Want to further optimize their profits ?( There are more risks ) Invest in a stable public chain or Shanzhai currency at a cheap price , And put profits into bitcoin 、 Ethereum and stable coin .

The past few days have not been easy

I've gone through several cycles , This feeling is familiar .

The price of cryptocurrency will always come back .

The next cycle may use different cryptocurrencies , But the market will always rebound .

If you get through this , And you're still in the game , So you've won your parking space .

Irons , Be sure to remember the lesson .

Legends sow seeds in the bear market , Harvest rich fruits in the bull market cycle .

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