Terra Luna (LUNA) Coin: Why It's Rising and How to Buy It

LUNA, listed on Binance, has been surging sharply lately. Note that LUNA can't be bought on Korean exchanges; it's only available on Binance. If you sign up for Binance through the link below, you'll get a 20% fee discount when you buy LUNA.

Why LUNA Is Rising

Why did LUNA go up? LUNA's market cap currently stands at about $1.8 billion. One of the reasons for LUNA's rise is the introduction of a '1.2% transaction fee burn' mechanism.

What does this mean? 1) As LUNA's mainnet becomes active again, transactions will increase, 2) LUNA coins will be burned through them, and 3) as the supply shrinks, the value of LUNA will rise. This mechanism drew attention because Binance decided to support it.

To sum up, LUNA had already lost investors' trust, but precisely because of that, 1) it had been completely off the market's radar, and 2) money started flowing in from Binance, the world's largest exchange. I think that's why such a big rally was possible this time.

At first Luna Classic went up, and then LUNA and UST started rising. They're showing gains and swings of nearly 50–200% in a single day.

I sold all the LUNA, Luna Classic, and UST spot holdings I'd been keeping and went short on futures. Also, a few days before the rally, I bought UST at around $0.028 and took profit on all of it in the $0.038 range, making about 30%. If I'd kept waiting, it would have been a return of over 100%, though.

Trading LUNA Futures

I sold all my spot holdings and went short. For now, I decided to leave LUNA alone and enter a short on Luna Classic (LUNC), which had reached near its peak. Even so, the uptrend was so strong that my stop losses got hit quite a lot. You know that when trading altcoin futures, you always have to set your stop losses properly to survive, right? For details on how to set a stop loss, please refer to this post.

Futures Trading Journal and Proof of Profits

First, on Binance I made $1,700 and $3,500 in profit across two accounts. Combined, that's $5,200, which is about KRW 7 million at the current exchange rate.

The exchange rate has gone up so much recently that making profits in dollars feels like getting an extra 20–30% by default.

In this round of trading, about 80% of my entries were shorts. I used 10–20x leverage and traded with around $1,000–3,000.

Often my position went into the red right after I entered, but since I went in prepared to lose all the money I'd put in, I was able to wait until it turned into a profit.

I split my seed money into about three parts to enter positions, set a stop loss first thing right after entering, and slowly took profits in portions. As a result, I was able to make $5,200 in profit over two days.

Futures trading is speculating on volatility, and using leverage lets you put your capital to work more efficiently. On the flip side, once losses start piling up, you can suffer big losses or even get liquidated.

Many people think long versus short is a 50:50 chance, but in reality that's not the case at all. A trader should look for zones and entry points where the odds are at least 70:30 before entering. Of course, the market can move differently from what you expect, so you absolutely must set a stop loss.

Anyway, that's how I wrapped up my Binance trades.

Next, I also did some trading with the funds I had on FTX. As you can see, the results weren't that great.

What I realized using FTX this time is that it's really important to use an exchange that suits you. FTX is also a really good and stable exchange, but while trading I've pressed the wrong button by mistake.

This time, I placed what I thought was a stop loss, only to find it was a limit order, and another time I didn't check "Reduce Only" and ended up taking a loss. In the end, I lost $2,383.

To sum it all up, I took $5,300 in profit on Binance and cut $2,380 in losses on FTX, for a total net profit of $2,966. That's about KRW 4 million in Korean won.

Here's a summary of the exchanges where you can buy LUNA:

• Binance (20% discount): spot and futures trading for LUNA, Luna Classic, and USTC
• FTX (5% discount): futures trading for LUNA and USTC