My post from yesterday regarding lessons we learned from Terra LUNA/UST collapse gathered significant attention, which to me means people are still highly sensitive to the topic. That makes sense, this event has shaken up the entire crypto market.
Most people talked about the need for diversification and doing your own research when investing, as lessons learned from Terra LUNA/UST collapse.
Regarding DYOR, yes, it's a big mistake if you don't do it.
About diversification, I have a more nuanced opinion, probably best answered by this reply I made:
So, some diversification is needed in my opinion, but not too much. I struggle with this myself, don't get me wrong! But strive to improve things.
There are two other aspects we often forget, especially during the bull market.
One is that we sometimes forget to take profits out and the second is that if we make profits easily we sometimes cut corners by not researching enough.
Since I shared in the previous post my loss due to the Terra collapse, I think it's better to make the picture whole by adding the missing pieces to it.
I don't remember exactly (and I feel too lazy at this hour to track it down), but my guesstimate is that I invested in the Cosmos ecosystem as a whole around $500, quite early, but not as early as JK, for example.
Since then, I earned significantly in that ecosystem. Outside Splinterlands, it was probably my most profitable investment.
When we couple the bull market and the pumping of assets like ATOM and OSMO (and others), the rewards from LPs on Osmosis and staking rewards as well as the airdrops (a few quite significant), we reach interesting numbers. All that starting with $500, let's remember that.
Here comes the taking profits part. Yes, I have done that. I don't always take profits close to the right time, but on Cosmos, I did that and withdrew a couple of thousands USD worth of funds from the ecosystem when everything over there was pumping. Maybe I wouldn't have timed it so well if I didn't have a goal where I needed those funds. Now I'm glad I did.
Even if I don't like losing those funds on Terra, overall I am well into profit on the Cosmos ecosystem, and what's more important, it can't turn into a loss (in 500, out thousands, still enough in the ecosystem) unless I add significantly more funds and lose them (which I don't intend to).
Taking profit is not a problem for me. Outside of Hive Power, I think I've taken some profit (or marked losses in some cases) in pretty much all crypto projects I have been involved with. I still need to work on timing more.
The other issue is what affected me primarily in the Terra LUNA/UST case: making profits easily which led to cutting corners by not researching the project. And that's what many of us I believe need to be very attentive to, especially during the bull market, because in the bear market most people pay more attention to where they put their funds (or at least I think so).