Hello! Recently, I delved into the history of financial crises and noticed something interesting. Many in the crypto community don't fully understand what happened on Black Monday and why it matters to us. Let's figure it out together.

So, Black Monday is October 19, 1987. On that day, the Dow Jones index plummeted by 22.61% in a single session. It was one of the most severe one-day crashes in stock market history. The wave didn't just hit the US—markets in Europe, Asia, and Australia experienced serious shocks. It was a global event.

What caused such a drop? First, stocks were overvalued. People were buying on credit, meaning they borrowed money to make purchases. When prices started falling, everyone rushed to sell to cover their loans. This created a snowball effect.

Second, computerized trading systems played a role. They were programmed to automatically sell when the market dropped below a certain level. Imagine: thousands of algorithms simultaneously hitting the "sell" button. The result? An even sharper decline.

Third, global factors contributed. High interest rates, international tensions—all created instability. And when the market started falling, panic set in. Investors were terrified and sold everything indiscriminately.

After Black Monday, billions were lost. It affected not only the wealthy but also ordinary people who had savings invested in the market. Trust in financial systems was shaken. Regulators introduced new rules—emergency mechanisms to halt trading during rapid declines.

Now, here’s the most interesting part. I see many parallels between 1987 and today’s crypto market. Cryptos also experience periods of overvaluation followed by sharp drops. Automated trading systems are active in crypto too, capable of triggering crashes within minutes. Fear spreads quickly—one rumor, and everyone panics.

The difference is that crypto markets are much less regulated. There are no reliable safeguards like those on traditional markets. This makes crypto more vulnerable to extreme fluctuations. Could something similar to Black Monday happen again? Theoretically, yes.

How to protect yourself? First—diversify your portfolio. Don’t put everything into one asset. Second—use stop-loss orders. They help limit losses. Third—stay calm. Panic is the enemy of rational investing.

Personally, I keep an eye on USUAL, which is trading around $0.01 with a slight gain, and IOTA, which is currently showing a loss. The market is volatile, as always. But if we remember the lessons of Black Monday, we can better prepare for any scenario.