live trading helps you compound losses or multiply money; while demo trading creates money for you.
When it comes for controlling our fear into the correction level, than it's true that experience from demo trading account won't be enough to control when we're on correction for real. TBH, newbie can start demo trading to become familiar with unknown tools or indicators in the starting level. After that, it's better to feel the real taste of trading by making trade with real funds so that we can control our emotion in any situation and don't get ourselves into fomo, IMHO.