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I have a friend who lost about $5k in the Terra crash. So not a lot, but he'd rather have $5k than zero. And when he was telling me about it before putting mone

I have a friend who lost about $5k in the Terra crash. So not a lot, but he'd rather have $5k than zero. And when he was telling me about it before putting money in he was talking about the 15% thing and that it seemed like easy money, and I said something like "well unless the whole thing just goes to zero". And you could tell he just didn't see that as a possibility. Like he's not completely blind, he knew he could lose money, although mainly he was thinking about them not paying 15% and him being able to withdraw at any time. But he hadn't given any thought to the whole thing just collapsing.

pastacacioepepe 4y ago
If your friend only had $5k in total and threw them all in Terra then I guess the lesson he got in the crash is way more valuable than any savings he might have kept. He would have lost them anyway on the next shitcoin.
- MadeThisToReply 4y ago
  This was my main lesson. I lost some money on Terra/Luna - thankfully much less than $5k, but still enough to sting. Looking back, I can see that I really had no idea what I was getting myself into and it was mostly just FOMO. Obviously I'd rather still have the money I lost, but in a sense I feel lucky. If Luna had waited an extra six months to collapse I would have become confident enough to put more money in, i.e. I'd have ended up losing even more. And I'll definitely be putting much, much more thought into any kind of crypto "investments" I make in future. The money I lost was a small price to pay for the lesson I've learned.
  - Tarsul 4y ago
    yes, I had similar lessons years ago with options, forex etc. (ok, yes... I needed more than one lesson :D) However, since I am a person that likes to "risk" their well-earned money, I think it's good that I have burnt my fingers early when I had less money. Now I have learnt that at the very least I should not put all my money into one bag. That's the biggest lesson: Split your investments. Split your accounts even. It doesn't rescue all your investments in a downturn but at least you'll likely never lose more than 50%.
rofo1 4y ago
People are not sufficiently educated about the value of things, vs. pricing, appreciation and so on. Just the fact that anybody can think that you can get 15% "risk free" over long periods of time means that they are out of touch with reality. Not to mention people thinking they will get 10x on their investments, without ludicrous amount of risk.
- bowsamic 4y ago
  You can easily get (far more than) 15% return over a long period basically risk free by buying the S&P500, so it appears that you are the one who is out of touch with reality. EDIT: How am I wrong?
  - sagarm 4y ago
    The long run return on the S&P500 is more like 8%, not 15%.
    - rofo1 4y ago
      I probably should have clarified that I meant yearly gains, I can see how that can be confusing to read for someone that doesn't spend time on these topics.
    - tim333 4y ago
      And the expected returns going forward from here are meh. Stocks are expensive because they were valued in a 1% interest rate environment and given current inflation that probably won't last.

pastacacioepepe 4y ago

If your friend only had $5k in total and threw them all in Terra then I guess the lesson he got in the crash is way more valuable than any savings he might have kept. He would have lost them anyway on the next shitcoin.

MadeThisToReply 4y ago
This was my main lesson. I lost some money on Terra/Luna - thankfully much less than $5k, but still enough to sting. Looking back, I can see that I really had no idea what I was getting myself into and it was mostly just FOMO. Obviously I'd rather still have the money I lost, but in a sense I feel lucky. If Luna had waited an extra six months to collapse I would have become confident enough to put more money in, i.e. I'd have ended up losing even more. And I'll definitely be putting much, much more thought into any kind of crypto "investments" I make in future. The money I lost was a small price to pay for the lesson I've learned.
- Tarsul 4y ago
  yes, I had similar lessons years ago with options, forex etc. (ok, yes... I needed more than one lesson :D) However, since I am a person that likes to "risk" their well-earned money, I think it's good that I have burnt my fingers early when I had less money. Now I have learnt that at the very least I should not put all my money into one bag. That's the biggest lesson: Split your investments. Split your accounts even. It doesn't rescue all your investments in a downturn but at least you'll likely never lose more than 50%.

rofo1 4y ago

People are not sufficiently educated about the value of things, vs. pricing, appreciation and so on. Just the fact that anybody can think that you can get 15% "risk free" over long periods of time means that they are out of touch with reality. Not to mention people thinking they will get 10x on their investments, without ludicrous amount of risk.

bowsamic 4y ago
You can easily get (far more than) 15% return over a long period basically risk free by buying the S&P500, so it appears that you are the one who is out of touch with reality. EDIT: How am I wrong?
- sagarm 4y ago
  The long run return on the S&P500 is more like 8%, not 15%.
  - rofo1 4y ago
    I probably should have clarified that I meant yearly gains, I can see how that can be confusing to read for someone that doesn't spend time on these topics.
  - tim333 4y ago
    And the expected returns going forward from here are meh. Stocks are expensive because they were valued in a 1% interest rate environment and given current inflation that probably won't last.