Before we put money in crypto, the most important thing to do is to understand risk, as we know that crypto investment is like a roller coaster so prices rise and fall can reach hundreds of percent per day, if we are not ready to lose then we will be easy to panic.
True indeed, it seems a lot of people have a lot more skin in the game than they should and therefore panic arises very quickly. Someone who is aware of the risks would never invest more than 20% of net wealth in a volatile market. Many people are in head over heels though and only have 20% reserves or less.