This well articulated. Crashes in financial markets are inevitable when it comes to crypto. They are something that you cannot avoid, however you can prepare for them.
Investors, especially beginners need to believe that even if the market crashes, if you don't sell your holdings, you have lost nothing. The only thing that changes after a crash is the value of your holdings. So, if you don't sell when price is low, then you can still enjoy your peofits when the price rises again. The loss only comes when you sell at a lower price and for sure the funds will be deducted from your pocket, there is no mercy.

This brings me to the second important point you raised. Invest what you can lose and use proper risk management. If you know that you can either win or lose from your investment, then you become content. You are prepared to hold and see where the market takes you even after a crash. But if you invest all your savings, then thats where the panic to sell comes from.

Managing risk is also key, planning before any trade or investment. This will give you planned entry and exit points, by the time you enter an investment you already have calculated potential losses and wins. This is very important to prevent panicky behaviours.

Trading or crypto investment are not get rich quick schemes. The market rewards the careful and punishes the greedy. Sitting down and planning before any investments prepares you for bad economic times and market crashes. Just a personal opinion.