In 2022, the man invested in a cryptocurrency project, but it fell to zero and he lost $120,000 in just 24 hours.

He put all his money (both personal and company) into a project that offered a 20% return on stablecoin savings. You might say that’s crazy.

However, a 20% return on savings seemed tempting compared to the returns offered by banks. Guess what? He soon regretted the decision. To put it in perspective, Terra Luna tokens went from a few cents in 2021 to becoming one of the top ten cryptocurrency projects.

This led to huge unrealized gains for greedy investors, who later lost everything. Therefore, the Terra Luna ecosystem supported the project, whose algorithmic stablecoin is supposedly designed to ensure financial stability. Unfortunately, cryptocurrency influencers like Crypto Banter and other popular YouTubers heavily promoted the LUNA and UST stablecoins.

But beneath the hype, there was nothing substantial to back it up. Like many investors, CryptoLabs was lured by the promise of a 20% return on TerraUSD (UST stablecoin) staking without fully assessing the risks. While every investment has risks, failing to assess the dangers involved often leads to painful losses and regrets. Reflecting on his mistakes, he said:

"In the beginning, I had no idea what I was doing. I invested in anything that promised quick returns, without considering the possibility of losing everything. What's the point of investing if you will lose 100% of your capital? Even if you make 10% a day, losing all your capital in 15 days means you gain nothing."

This sounds right. In the cryptocurrency space, people often put their money into meme coins, hoping to get rich without considering the risks. They think getting rich in the cryptocurrency space is all a matter of luck. But this is wrong!

Look, before you invest $1,000 in a low-cap altcoin or meme coin, assess your financial situation and make sure you can afford to lose it. That $1,000 could turn into $100,000 — or disappear completely. Can you afford to lose that?

I understand that as an investor or entrepreneur, you are naturally courageous and seek new challenges and explore new areas. Sometimes you will lose money and make mistakes, but learning from them is what makes you special.

Since starting crypto investing in 2021, I’ve made some stupid mistakes and also fell victim to the Terra Luna crash in 2022. But I’ve learned the importance of converting altcoin profits into Bitcoin and fiat. This is something many beginners still struggle with.

When asked about losing $120,000 in 24 hours, he said:

"I think a lot of people tend to do things that are outside the norm when they start out as investors or entrepreneurs, and they lose once or twice, and it hurts. I'm not going to lie. Within 24 hours, I was up all night, thinking about my entire existence, like, do I keep doing this? Do I quit?"

Despite the pain, he created a journal called "The Red Book of Investments" to record the lessons learned from the disaster.

He explained:

“I have matured, learned a lot, and am now focused on long-term investing. (My principles are simple) I only invest in crypto projects that have real value and long-term potential. If it doesn’t meet those criteria, I won’t touch it — no matter how tempting it looks.”

What about you? What are your criteria for investing in crypto projects? Do you just randomly throw money into projects and hope they succeed? Let me know in the comments.

Key Takeaways

The key point is this: if you learn from your mistakes and apply those lessons, you will make smarter decisions than others.

You see, too many people are pouring money into random crypto projects hoping to get rich quick. That's not investing — it's gambling.

Even professional gamblers do their homework before entering a casino, so be prepared before investing.

You can’t keep making the same mistakes and expect different results.

Since 2013, we have had many cryptocurrency projects that overpromised and ultimately disappointed investors. Meanwhile, Bitcoin, Litecoin, Ethereum, and a few other cryptocurrencies have been around for over a decade.

So instead of investing heavily in memecoins and high-risk low-cap altcoins, allocate 70-80% of your portfolio to Bitcoin and top utility altcoins.

However, if you like high-risk investments, then keep a small portion of your funds in meme coins or low-market-cap altcoins and understand the risks.

For me, the risk of investing in Bitcoin and quality altcoins is enough to allow me to have long-term success in the crypto space. So do what works for you.

Since his failure, he has shifted his focus, and here are his valuable lessons for beginners:

a) If you are new to cryptocurrency investing, you will most likely make money and lose money in the first cycle until you master the art of profit taking.

b) Invest only what you can afford to lose and avoid big losses. Then, learn from other people’s mistakes and avoid making them again.

c) During the bull market, always control greed and take profits when the market moves in your favor.

He was devastated mentally by the Terra Luna crash of 2022, which wiped out his entire portfolio. So, don’t let this situation become your story.

If I were to summarize it in one sentence, it would be this: there is no point in investing in risky altcoins if you cannot ensure your profits. Instead, you should invest in Bitcoin, Ethereum, and other top altcoins that have weathered more than a decade of market turmoil.