By ICO Alert
- The crypto market can swing up or down by 10% to 20% in a day’s time
- Keep your emotions in check when trading crypto
When you punch your ticket for the rollercoaster ride known as the crypto market, it’s important to keep your emotions in check. What goes up must come down, and what goes low typically finds a higher low. This at least rings true for the stock market, and much of Bitcoin’s young trading life has followed suit.
Why This Matters: Let’s take a closer look at a few of the 14 emotions one might encounter while in the cryptocurrency market. First up, “optimism”: Congratulations, you’ve just purchased your first cryptocurrency. Someone at the water cooler must have been pretty convincing because you almost skipped straight to the “Panic” step when you were presented with two 34-character, alphanumeric hashes representing a public and private key that look like the most ridiculous WiFi passwords ever.
Next, we have the “thrill” phase: Things are really starting to heat up. 10% gains in the morning turn into 15% gains by lunch time. You’ve downloaded the Blockfolio, Delta or Bitscreener app for your phone at this point, so you can keep a keen eye on those numbers. You even hope someone over your shoulder steals a glance at your portfolio, practically making you a superhero in their eyes.
The key is to have a long term goal and to stick to your guns
Then there’s “anxiety”: How did we give back 9% in two hours? This downturn surely was not in the plans. But can you imagine what would have happened if you sold at the top? If only we all knew the future, then we would constantly sell at the top and buy back at the bottom.
Finally there’s “relief”: You’ve come full circle. If you managed to hold through the storm, congratulations. You’re either a seasoned trader, or a sociopath with some strange emotional imbalance.
Situational Awareness: Now, what do all of these emotions have in common? They’re all stupid! Even seasoned veterans must admit that they can sometimes be overcome with emotions, but the key is to have a long term goal and to stick to your guns. With crypto, it’s not uncommon to see the entire market swing up or down by 10% to 20% in a day’s time.
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