How to Deal With the Ups and Downs of Crypto Investing
Whether you dabble or have been in it for a while, you’ll recognise this - crypto trading can be stressful. Fun and exciting. But stressful. Turns out pioneering a new way of doing things ain’t easy. Crypto FOMO, crypto anxiety, trouble sleeping…these are all symptoms or side effects that are becoming common experiences within the world of crypto.
We spoke to the community and some of our own team members about their experiences and what they do to stay well.
Note: this isn’t advice about how to make money or the best ways to invest. These are the tips for crypto traders looking to keep the anxiety at bay.
If you feel like the only crypto investor in the village…
Checking your wallet every 5 minutes? Starting to use words like ‘hodl’ in regular conversation? Dreaming about bears? You’re not alone. But you may feel it.
Standing on a trade floor may be your idea of hell but there is a certain comradery. Finding your tribe in crypto is less easy.
You know that feeling when you’re in a bar (or at a zoom meeting) and someone randomly mentions DeFi and your eyes light up? Oh goodie! One of us! But for most, we don’t get the chance to talk about these things. Or worse, we get random calls from someone we met 3 years ago about how they can buy some of those Bitcoins.
Geeking out with others is a must for many of our community.
Crypto is always on, but you don’t have to be!
Another comparison to traditional stocks. You may think of stock investors as suits and redbull but at least they get to log off after the markets close. Crypto doesn’t sleep.
It might sound old fashioned to talk about work/life balance but it’s relevant. If it starts to feel like crypto is ‘the real world’ and the outside is like being transported to a different time, the balance might be off. A good tip is to avoid your phone for the last hour before bed and the first hour once you wake up. Limiting screens even 30 minutes before you sleep can reduce sleep issues and keep crypto demons out of your dreams.
Another tip is the sleep test.
If you check prices too much
Ask yourself, do you really have to? Question what you’re hoping to see or not see, and what you’re going to do about it when you do. Many of us struggle with impatience..hence the constant checking for changes.
If you’re making short term decisions
Mindfulness is a total buzzword, but here it might mean simply being aware of when you’re picking up your phone or opening a new tab to check prices. Mostly we ’re on autopilot but with a bit of awareness, you might be able to see how often you’re checking and maybe even start to cut down. Do you know when you’re most likely to open an app? Do you have a habit of checking when you finish your work day, when you’re making a coffee or is it every time you pick up your phone to do something else? Are you checking because you’re anxious or just bored?
See if you can replace that habitual mindless checking with something else or, if you like rules and structure, limit your checking to once an hour.
If you always have three articles, Reddit and a podcast on all together…
We’re not just price obsessed. You can spend loads of time reading around the subject of cryptocurrency - the philosophy, vision, history. Most of us got into DeFi this way - a belief in this fascinating way of doing finance. While it’s great to read up and stay in the loop, watch out for content grazing - half scanning and getting distracted before you register a single piece of useful info. Instead dump links in a ‘read later’ list. If it’s worthwhile, it’ll come up again.
And social media scrolling counts too.
If you get crypto FOMO
There are a lot of new and shiny things in crypto. New coins, concepts, protocols.
FOMO can feel like an endless cycle - there is always something to miss. It’s hard to keep up. When you’re stuck in the FOMO cycle, take a break. What do you really need to know right now? What are you looking for from the ‘new’ thing? If you’re looking for the sake of ‘just because there might be a better option/way/coin’ then maybe what you’re doing right now isn’t working.
FOMO starts with feeling dissatisfied with what you’ve got and looking to compare it with something better.
Here some ways to cure or prevent FOMO in crypto trading
- Stick to a plan
- Avoid impulsive decisions and jumping on trends. FOMO feeds off short termism. Watch out for being triggered to act on your FOMO, rather than making considered decisions
- Remember that will always be another trade/coin/concept
- Only use capital you can afford to lose
- Know the market by consuming content you trust, to give you the confidence that you’re informed
Crypto is still run largely by emotion. Making it a business of looking after yourself, not just keeping up with the latest prices.
If you struggle with ‘losses’
When you invest in crypto, always think that you can lose - especially if this is not you job. It is very important to stay wise and place your funds in a proper way.
And finally, a note on tools
Crypto technology is another source of anxiety. The tech exists to keep you addicted, engaged and to build a better future. But there are a lot of different tools in the space, and it can be very difficult to understand them fully and correctly. Informing yourself before putting your money there is really important.
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30 July 2021