Earning Money in a Downtrend: Escaping LUNA, But Falling with UST

1. Entering the Market During an Uptrend

The interviewee entered the crypto market in late 2020, during a recovery phase leading to significant growth. Their investment portfolio included coins like SOL, FTT, LUNA, and TRX.

2. The Psychology of Greed in an Uptrend

During bullish markets, investors often become overconfident, holding positions too long in hopes of higher profits, which can lead to losses when the market reverses.

3. Timely Exit from LUNA

The interviewee sold LUNA at $40 in September of the previous year, achieving a 5x return. This decision was based on the assessment that LUNA's rapid growth was unsustainable, with higher downside risk than upside potential.

4. Losses with UST

After profiting from LUNA, the interviewee invested in UST through the Anchor platform to earn 20% interest. When UST lost its peg, they continued buying, hoping for a recovery. However, following the collapse of the Terra ecosystem, this investment resulted in a 20-30% loss.

5. Lessons Learned

This experience highlights the importance of risk assessment and not letting greed dictate investment decisions. Even seemingly stable projects can collapse without a solid foundation.