Keep your emotions out of crypto and its volatility !

Keep your emotions out of crypto and its volatility !

By Djordi | DJCrypto | 30 Jan 2020


Hi everyone !

It is extremely important to keep your emotions out of cryptocurrencies. The cryptocurrency market is volatile and for a lot of people this will bring emotions with it. It is going down 10% today, should I sell now ? Today it is going up 10%, shit, see, I should have bought in yesterday ! etc. etc. It is easy to let your emotions run and these emotions will lead to bad decisions.

Try to keep your emotions as far away as possible from cryptocurrencies. If you are investing for the long run (several years), accept if/when it goes down 10% or more. This is very common in the crypto market and even 50% down is a good possibility. Try to remember to dollar cost average in and do not put in more money then you are willing to lose. A lot of people put in too much money, because they want to get rich quick and when it goes down they will sleep less good at night and are more prone to sell at a loss (weaker hands). They are afraid that it will go down more and so they will sell to mitigate their losses. Maybe they should not have gone in, in the first place ! Remember that a market will have its ups and downs and that you will see bull and bear markets. Especially in crypto you will see prices go down very low since the market is still so small. It is easy to make prices move around (whales), but this will get more complicated the more mature it gets. The crypto market is still infantile and thus prone to volatility (this makes it all the more interesting for nice gains) and so you should accept the downswings and upswings. It will be better to not look at the prices every single day and sometimes you should just take breaks from cryptos and do nice things.

Try to be the strong hand because for over 10 years Bitcoin has shown that you will get rewarded for it ! Try to be patient, because markets take a long while to really develop (mass adoption, the infrastructure, etc.). It will not create within a year or 2. This can take 20 years before it is really mature (look at social media, Hotmail, Outlook and internet as examples). A lot of people forget this and scream about that there is no adoption yet and it will never happen ! Where is the ETF ? It gets rejected all the time ! Bitcoin will go to zero ! Do not fall for the FUD (fear uncertainty doubt) in crypto. These things are normal and it will take a long time before you really see things develop. Once again use this to your advantage and slowly go in this market. Patience is key and you have a good chance of getting rewarded.

If you are here for trading it is equally if not more important to keep your emotions out of it. Since you are trading you will more likely look more often since you will check the charts and so you will see a lot of movements in this market. Stick to your plan (entry is justified by indicators, always put a stop loss to keep your risks at a minimum, have your targets for selling ready) and do not let heavy movements cloud your judgement and plan you had in the beginning. It is very easy to doubt yourself and the plan you made so try to be a robot. This is easier said than done, but try to practice this. You might even want to paper trade first (paper trade is trading with no money) to practice and learn to keep your emotions out of it.

I am not a financial advisor and this is not financial advice. Do your own research and make your own decisions.


Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

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