There was a number that left a deep impression on me—In May 2022, someone watched helplessly as a $1.2 million USD account turned into breakfast money in just three days. This wasn't a small dip; it was a straight plunge.

The Luna collapse actually served as a mirror to the crypto market. From $119 down to $0.0001, with no buffer and no limit-down to give you a breather. An experienced trader first waited for the "team to rescue the market," then added to their position at the bottom to "buy the dip," and finally watched as the exchange delisted the token, leaving the account permanently zeroed out. Insomnia, trembling hands, inability to open the software—these psychological shocks are far more terrifying than losing money itself.

Why is it so easy for the crypto world to be "scared"? Several factors stacking together create a perfect storm.

The first is the emotional amplification effect. During a bull market, social platforms are full of boastful profit-sharing, and FOMO drives people to blindly chase highs; once the trend reverses, panic spreads like a virus. During the UST de-pegging, the on-chain mechanisms themselves intensified the panic, ultimately creating a self-fulfilling death spiral—it's not that the project was bad, but human nature completely collapses in front of algorithms.

The second is the time advantage. The stock market has closing times to allow for calmness, but the crypto market operates 24/7. A single piece of news in the middle of the night can vaporize your holdings out of thin air. Many stay up all night to avoid missing opportunities, only to have their mentality collapse first, and their trading start to distort.

The third and most deadly factor is leverage and liquidation mechanisms. It's like a sword hanging over your head—you know it's there, but it can always fall during a crisis. The absence of a limit-down concept means there’s no bottom to the decline, and the liquidation mechanism amplifies small fluctuations into disasters.

The stock market has support measures and circuit breakers, but the crypto market is purely governed by the law of the jungle. You need to be more cautious.