Ruin refers to a situation where an investor’s losses exceed their initial capital, making it impossible for them to recover their investment. In the fast-paced and volatile market of cryptocurrencies, this can happen quickly due to sharp price declines, poor investment choices, or excessive use of leverage.When investors use borrowed funds to enhance their positions, even a small drop in asset value can lead to significant losses. If the market does not recover, they may find themselves facing liquidation, where their holdings are sold off to cover debts. This scenario can lead to a total loss of funds, leaving the investor financially devastated.Ruin can also arise from holding onto assets during prolonged downturns, where poor market conditions prevent timely selling. Understanding risk management and setting realistic expectations is crucial for mitigating the chances of ruin. Diversification and thorough research on potential investments can help protect against significant losses.