I’ve noticed that many newcomers in crypto keep running into the same thing. The market jumps by 300% in a month; everyone is screaming about a new “million-token,” and then suddenly everything drops by 80% and people lose everything. This isn’t random—these are crypto bubbles in action, and honestly, learning to recognize them is a skill that protects capital.

When I look at history, I see one clear pattern. In 2017 there was an ICO boom—every project seemed to promise a revolution. Companies launched tokens without a real product, just with pretty words and marketing. Billions flowed into projects that later simply disappeared. Then came 2020–2021: DeFi promised 10000% APY, NFT collections like Bored Apes were selling for millions. I remember ordinary people mortgaging their homes for yet another “next Ethereum.” When the bubble burst, those same tokens lost 80–90% within a few months.

Here’s what’s really happening: prices rise not because the technology has gotten better, but because people who are afraid of missing out on the opportunity jump into the game. That’s FOMO—the fear of missing out on profit. Media inflates it, influencers talk about getting rich fast, social networks run 24/7, and people enter without analysis. In a young market without proper regulation, any project can pull in millions just through aggressive marketing.

How can you tell that crypto bubbles are about to burst? I look at several signals. If an asset doubles in a week without any real news—that’s a red flag. When unknown coins start moving billions on exchanges and jump into the top, that’s speculative money. It’s especially suspicious when meme coins surge—that usually means totally inexperienced people are in the game, and a correction is close.

How do I protect myself? First, I analyze the real project. Does it have a team? Is there a working product? Or is it only marketing? If the investment is based solely on hype—I don’t touch it. Second, I don’t follow the crowd. Most people enter at the peak, but I prefer to enter earlier or not enter at all. Diversification is my main tool: some in Биткойне, some in стейблкоинах, some in verified projects. A stop-loss is mandatory, and I don’t wait for the perfect peak because I still won’t catch it.

History shows that crypto bubbles are part of the game in this market. They’re inevitable because the market is young and speculative. But those who understand the cycles act more coolly. When everyone is chasing the next moon, I look at fundamentals and wait for a correction. That’s the difference between a trader who loses money and someone who turns volatility into an opportunity. Don’t give in to emotions—study the past, and you’ll probably avoid one of these traps.