Looking at the red and oily candlestick chart, I actually feel excited. This kind of market reminds me of several major crashes in the past: the ICO bubble burst in 2017, the 312 flash crash in 2020, and the LUNA collapse in 2022—each bloody moment eventually turned into a carnival for heavy holders.



Anyone who has been in the crypto space for a while understands this principle: a sharp decline is never the beginning of risk, but rather the concentrated release of risk. Leverage gets liquidated, retail investors are pushed out, and the truly valuable chips start flowing into the hands of the smart money. Today, I want to share my insights from these years of navigating bull and bear markets, talking about how to stay clear-headed in such conditions, and even turn crises into opportunities.

**The Testing Role of Sharp Declines**

When the market is hot, all coins are rising, and it’s hard to tell which projects are genuine and which are just air. But once a sharp decline hits, it’s like a big exam—immediately revealing who has real resilience.

Bitcoin is the best example. In 2022, it plummeted from the high of $69,000 down to $15,500. At that time, many people were calling for cuts. But what happened? In just 2-3 years, the price surged back to $126,000. Those who dared to accumulate at the bottom are now smiling with their eyes squinting.

In contrast, small-cap coins reveal their true colors when a crash occurs. During the LUNA collapse, how many retail investors thought they had bottomed out? Yet in less than three months, 90% of their funds vanished. That’s the cost of information asymmetry and blindly following the herd.

**How to Find Real Gold in the Ruins**

My approach is to focus intensely on projects with solid fundamentals, ongoing development, and active communities. During crashes, these projects are often wrongly punished—that’s where the opportunity lies.

The key is to be able to distinguish. Check whether technical progress is still advancing, whether community discussions remain lively, and whether there are real application scenarios supporting the valuation. These details can help you avoid pitfalls and also identify projects that will rise from the ashes.

Market crashes are essentially a filtering process—weak hands are eliminated, and true value is re-priced. The wise approach has always been to be greedy when others are fearful, and this time is no different.
LUNA-2,94%
BTC0,41%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
SchroedingerGasvip
· 1h ago
Here comes another attempt to fool retail investors into buying the dip. How are those who said this during the 312 crash doing now? BTC has indeed rebounded, but do you dare to bet that these shitcoins in your hands will come back to life? It's easiest to self-hypnotize during a red day. When the real wipeout happens, you'll see clearly who is swimming naked. The LUNA pit hasn't been filled yet, and now they're talking about "solid fundamentals." Honestly, I can't help but laugh. Bottoming out and absorbing funds sounds easy, but surviving is the real skill. Most people lack that resolve.
View OriginalReply0
NoStopLossNutvip
· 2h ago
That's right, but when it comes to bottom-fishing, you need to have some mental resilience. Retail investors fear the most is buying the dip only to end up at the top haha. That wave of LUNA indeed taught a deep lesson. Now, looking at the fundamentals is more important than anything else. Still, as I always say, greed when fearful is only valid if you can clearly identify who has real value; otherwise, you're just giving away money.
View OriginalReply0
GasFeeDodgervip
· 12-26 23:50
Coming again with the "Fear of others, greed for myself"? The LUNA wave hasn't even woken up yet, and you're already sharing insights. What's the deal? Can you identify genuine projects this time? --- Sounds good, but how many people are really willing to buy at the bottom? Most are just armchair strategists after the fact. --- Laughs. Every time there's a sharp drop, someone says it's an opportunity, and there are still plenty of projects that run away. --- Wait, isn't your logic reversed? Being pushed out by retail investors actually indicates that risks are being released, not an opportunity. --- That wave of 312, I saw with my own eyes that people in the group went to zero overnight. And now they're still talking about rebirth from the ashes. --- Please, stop brainwashing new retail investors. When will the crypto circle's "crisis = opportunity" rhetoric go bankrupt? --- Honestly, this article makes some good points, but I can't help but feel there's a vibe of "I made money, so I'm sharing my experience."
View OriginalReply0
BugBountyHuntervip
· 12-26 23:50
312Nabo I saw with my own eyes people go all-in and cut losses, and now they are still bragging in the group... Really laugh to death Another round of sifting through the sand, only after retail investors are out will the real start begin Bitcoin went from 15500 to 126000, I didn't get in during this period, which is truly regrettable... But I don't want to miss out this time The LUNA example was too heartbreaking, so many people bet their life savings and ended up zeroing out overnight How to judge which project is worth bottom-fishing? Looking for some guidance This method of analyzing fundamentals sounds good, but can you really tell the difference in actual operation? When others are greedy, you should be fearful—this saying is easy to say but really hard to do.
View OriginalReply0
IntrovertMetaversevip
· 12-26 23:46
Here we go again with the "decline is an opportunity" rhetoric. Honestly, I'm tired of hearing it... Why don't you first show me how those "misjudged" projects have performed over the past two years?
View OriginalReply0
ContractSurrendervip
· 12-26 23:44
Is this coming again? I'm already tired of the story about accumulation at the bottom. The key question is, are you really willing to go all in? Where is the real money? Point it out. People who caused chaos with LUNA are still in hell. The so-called screening process is, frankly, just big players cutting leeks. When others are fearful, I am fearful; when others are greedy, I am also fearful. This is the correct attitude to stay alive. Solid fundamentals for small coins? Laughable. If development continues, won't they just never go to zero? Talking nicely, it's just a way to fool us into taking over the position.
View OriginalReply0
gm_or_ngmivip
· 12-26 23:34
Here we go again with the "decline is an opportunity" rhetoric, sounding nice but do you dare to go all in? That wave of 312 indeed made some people explode with profits, but more people just quit, that's the truth. No one really knows where the bottom is. Looking at the fundamentals? LUNA's fundamentals didn't seem problematic before the crash. This market is truly different this time. I'll just watch and wait. Every time there's a big drop, someone says the smart move is to be greedy, but what happens? They end up paying the IQ tax again. With such a big gap, who dares to jump in? Still need to keep some bullets.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)