How to Deal With Losses in LUNA (and Other Crypto Investments)

how to deal with losses in luna
how to deal with losses in luna

Terra (Luna), which was formerly one of the top 10 most valuable cryptocurrencies, has dramatically plummeted in value. If you are one of the investors who have lost thousands of dollars in the recent Luna crisis, don’t be desperate, since you are not the only one. In this article, Tokenize will help you out with 3 tips to deal with losses in LUNA and other cryptocurrency investments. 

how to deal with losses in luna
How to deal with losses in LUNA and other crypto investment

What happened with LUNA and Terra Network?

In the preceding 24 hours, its market value plummeted from about $40 billion to just $500 million, a drop of more than 99 percent that has left investors with nowhere to go.

deal with your loss in LUNA
In the preceding 24 hours, its market value plummeted from about $40 billion to just $500 million

Terra used to be one of the top ten most valuable cryptocurrencies. However, according to Coinmarketcap, it has plunged below $1 after peaking above $120 last month. An investor said that he lost $15,000 after failing to sell his LUNA investment when it was trading above $100. In addition, TerraUSD (the stablecoin of Terra network) was recorded to lose peg.

One member of the r/TerraLuna sub-Reddit stated that they lost all his savings. ‘I bought Luna for $85, and I’m not sure what to do with it.’

>>>Read more: 5 tips to survive crypto bear market

How to deal with losses in LUNA

So, if you’ve lost money on your crypto investment, here’s what you should do.

Accept the truth and be patient

You might think ‘Bullshit! Who can be calm in this situation? Everything is chaotic’. But our first piece of advice is to be patient. When dealing with such losses, patience is essential since it prevents panic and the sale of cryptocurrencies. Who wouldn’t be concerned if their hard-earned money was lost on a profitable investment? 

Accept that you have lost the money you invested in cryptocurrency, along with patience. Remember that every investment has an amount of risk, and problems will always arise.

deal with LUNA investment loss
Remember that every investment has an amount of risk, and problems will always arise

Learn from your mistakes

If you make mistakes, the important thing is to learn from them. Learning from your own mistakes can be extremely valuable, but the school fee is pretty high by the way. So I will point out the various common situations for beginners to avoid at first.

Firstly, never put all your eggs in a basket. If you invested 100% of deposited money in LUNA, for example, and suddenly it dropped 90%, you would lose 90% of your fund. But if you have a portfolio with LUNA accounting for 10% of your investment, then you just lost 90% of 10% of your fund, equal to 9% in total. Therefore, never underestimate investment diversification!

>>>Click HERE for top 5 crypto investment rules

If you’re not good at trading, put up an auto-sell order on any exchange platform with a break-even or small profit dimension. When you place an auto-sell order, it will sell whenever the value of your cryptocurrency reaches that level. As a result, healing is assured.

Remember, your losses don’t define you

Don’t take the loss personally and keep it in perspective. Remind yourself that a lot of other people have been through something similar to you—perhaps much worse. The loss does not define you, but if handled right, it can help you become a better investor in the future.

Is there any chance that LUNA would recover?

Terraform Labs CEO and co-founder Do Kwon tried damage control on the same day he proposed a resurrection plan for Terra’s recovery by rewarding UST and LUNA holders for retaining the tokens during the crash.

https://coinmarketcap.com/
Is there any chance that LUNA would recover?

Despite the hazards, Terra’s ‘crazy volatility’ appeals to many short-term investors, owing to the fact that LUNA surged 600 percent in value on May 14.

The trading volume of LUNA increased by nearly 200 percent to $6 billion as investors try to recoup their losses and others tried to profit from Terra’s rebound. Over the previous two years, the LUNA ecosystem consistently registered over $2 billion in trade volumes until the crisis.

Comparisons to the 2008 financial crisis have already begun to emerge. Circular market dynamics and extremely high leverage, which are hallmarks of shadow banking, are plainly observable in Terra’s ecosystem, prompting scholars to anticipate a second, digital wave of bankrupt lenders and wiped-out savings.

‘It will get worse before it will get better – way too much UST is looking to exit, and the death spiral is very reflexive at these levels,’ said Mr. Fadeev. “It’s a long road ahead.”

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