You know you are lucid dreaming because you are aware of it when you are dreaming. You know what is happening isn't real.
When I lucid dream, it's usually because I am visiting a familiar place and something will suddenly feel off. Something is out of place. I will then come to the realization that I am in fact in a dream state and nothing is real. Sometimes this means I can manipulate the dream to my liking (which is how it typically goes) or I just go crazy. Once I was walking with friends, realized I was dreaming, so I started throwing snowballs at them (it was the middle of summer...) and laughing and saying "this isn't real life!". Leaving a lucid dream is always a bit strange, as I am aware in my dream that I am waking and the dream is about to end. It feels like I'm being sucked into a black hole.
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