How to survive the biggest crypto crash in history?
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How to survive the biggest crypto crash in history?
Post-crash era: Where should cryptocurrency investment go from here?
Navigating Web3 tides with focused insightsAuthor: Route 2 FI
Translation: Saoirse, Foresight News
I've been reflecting lately on my life choices — over the past four years, I've thrown myself almost entirely into the world of cryptocurrency, and "entirely" here is no exaggeration: I have almost no other hobbies. Most of my waking hours are spent directly or indirectly on crypto — researching trades, testing new protocols, communicating with others, posting content on X, reading opinions, browsing industry newsletters, and going through podcast transcripts (I prefer text because I can read five times faster than watching videos or listening to audio).
I genuinely love the process of striving, perhaps even bordering on obsession. This doesn't mean crypto is my only interest, but currently it's undoubtedly my central focus. Maybe one day I'll grow tired of it, spend weeks or months pondering my next direction, and eventually find a new goal. But looking back, my fascination with numbers and speculation has always been evident.
The crash on '10.11' was terrifying, but I emerged almost unscathed. Over the weekend, my delta-neutral strategy on Lighter meant that my short positions weren't auto-liquidated like they were on platforms such as Hyperliquid; on the long side, I held only spot assets. I had no open perpetual contract positions on Bybit at the time, and the day before the crash, I closed a sizable DOGE/BTC pair trade — originally just to enjoy a peaceful weekend. In hindsight, had I not closed that trade, I would likely have suffered heavy losses. So surviving this time definitely involved some luck.
My usual approach involves low leverage of 2-3x, primarily to reduce margin requirements on centralized exchanges (CEX) or decentralized exchanges (DEX). Yet this crash still shocked me: altcoins dropped an average of 62%, with some plunging 85%-99% — meaning every leveraged long position was wiped out. Over recent years, many aggressive traders (known in the community as "degens") have flooded into crypto trading, first battling on Solana, then moving into perpetuals. Today, leveraged trading has become standard practice across the industry, and I use leverage daily myself. Some may criticize these traders for poor risk management, but in my view, 2-3x leverage is actually quite conservative. And honestly, I don’t think people will abandon leverage after this crash — within 1-2 weeks, those aggressive traders will be back in the market, acting as if nothing happened.
Just imagine: how do you hedge against an average 63% drop in altcoins (and that's just the average — most coins fell much more)? It’s utterly insane.
So who will remain in this cycle to keep fighting after the crash?
The ones who are "stubborn yet cautious": they mainly hold spot assets and take a long time observing new tokens or projects before buying. They don't blindly go all-in, so they usually don't achieve outsized returns, but at the same time, their portfolios achieve steady compound growth year after year.
The hardest hit were perpetual contract traders; ironically, many "altcoin diehards" (such as Solana traders) fared relatively well — because most of them traded without leverage. Of course, some did venture into perpetuals, and if so, they likely suffered major losses. But the majority stuck to spot trading, so even if they lost money, they didn't lose everything.
For perpetual decentralized exchanges (Perp DEXs), the impact of this crash is worth noting: on Hyperliquid, short positions were auto-liquidated, allowing its platform token HLP to profit; on Lighter, shorts weren't liquidated, causing its token LLP to incur losses. No one can predict the future of Perp DEXs, but this '10.11' stress test has left the industry with valuable lessons and areas for improvement. For example, should the HYPE token buyback model be adjusted? Is 100% buyback sustainable?
Will I stop using leverage? No. I know I must take responsibility for all my trades and decisions. Risk will always exist — and without risk, there would be no reward.
Regarding DeFi, I expect a wave of position unwinding ahead. Although DeFi performed admirably during the '10.11' crash, market panic has spread, and many may now prefer holding assets in their own wallets rather than entrusting them to third parties. Fortunately, USDe remained stable during this event. In my view, Ethena stands as a "pillar" of DeFi — it supports the entire ecosystem, and if Ethena fails, it would trigger a chain reaction (for example, 70% of Pendle's total value locked (TVL) depends on Ethena).
Looking ahead, I’ve been thinking about which altcoins are worth buying. Right now, I’m leaning toward MNT and other long-standing "legacy tokens." Also, I believe the altcoin speculation frenzy will cool down, so PUMP and Fartcoin won’t be primary investment targets for me. Currently, I'm mostly holding stablecoins and plan to adopt a "pure news/narrative-driven" trading approach — this might not yield the highest returns, but at least it can protect my account effectively in the short term.
Finally, I want to say:
Most people never achieve their dream level of wealth because they lack the traits of those who succeed.
Your competitors are those "born for this field": they don't count working hours, and they don't back down when facing hardship. They don't slack off in good times, nor do they quit in bad times — this rhythm is simply their way of life.
Wealth might be their outward goal, but what truly drives them is the "chase itself," the "joy of growth," the "refinement of skills," and the quiet improvement of expertise when no one is watching.
They aren't obsessed with the "finish line," but deeply in love with the "scenery along the way."
And precisely because of this, when others choose to burn out or walk away, they continue to "win" — not because they "must win," but because they can't imagine leaving a "game" they truly love.
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