The idea of never needing to worry about money again. That is something that attracts many of us to the cryptocurrency market. A place that is ripe with opportunities, potential, and life-changing wealth. The longer that you invest in the cryptocurrency market; you quickly begin to understand how the market works. We typically have 4 cycles that are split between half of it being a bull trend, and the other half having a bear trend. The longer you are in this market, the more likely you are to find success.
However, there is a certain trend that you will notice more than any other. As quickly as your wealth can come into this market, it will leave just as quickly. The gains that you see on your phone or computer, are simply only paper gains and mean nothing until you cash out. There have been common stories of people becoming millionaires during bull cycles, only to see their portfolio worth a few thousand dollars afterward.
You will also quickly understand that the biggest threat to our success in this market is ourselves. The FOMO will sweep you away, or the FUD will send you into a state of panic. During bull cycles we see the value of our portfolio increasing, and our mindset starts changing. While before, we would have been thrilled with this amount of amount and quickly sell for cash. Now we are beginning to think about having even more. Thinking about possible houses or cars we could buy, luxurious trips we could go on, businesses we could start, or even possibly being able to retire early.
The main point is greed almost will always get the best of us. Once prices have hit certain targets, we begin to want even more. But then prices begin falling and dropping much further than we could have imagined. Which results in us either holding to the bottom or selling at a loss in a state of panic.
Greed always gets the best of us.
The best way around this is actually making your own crypto plan. It isn’t enough to only think about it. But, you need to either write it down on paper or type it on your computer. This helps to make it much more real. Set targets of what your goal is. Perhaps it is to pay off all of your debt or to buy a house. Then, calculate how much money you need to make that goal a reality.
Then decide at what price you will begin selling your crypto. Perhaps you will sell 20% of your Bitcoin at $100k, then 20% more once it reaches $150k, and so on. This way you are ensuring your profits. While greed is still in effect in this scenario. To make this work, you have to promise yourself that you will stick to your plan no matter what.
For some people, their crypto plan might mean that they never end up selling. That they truly believe in the asset, and won’t sell it until they can use it everywhere instead of cash. This is the category that I fall into with my Bitcoin.
The gains you see during bull markets are only numbers on a screen until you cash out. The cryptocurrency market is incredibly risky, and the future isn’t guaranteed. We could wake up tomorrow to see that everything went to zero. If that scenario would devastate you, then your best course of action is to make your own crypto plan.
How about you? What is your crypto plan?
Read my articles first on
or
As always, thank you for reading!
