Take care of yourself

Mental Wellbeing in Bear Markets


The markets have crashed and the crypto space has just imploded thanks to Luna's mishandling of the US-Terra collapse.  According to defillama.com crypto Total Value Locked dropped from $245Bn to under $220Bn in around 1 week.  

Your portfolio may also be slashed in half, or worse.  If you're feeling pain in your stomach every time you see or hear more news about how bad things have gotten and how even Bitcoin will drop further.  You are not alone...

Many scavengers are picking at the bones of what may be a LUNA/UST 'dead cat bounce' and bragging about their profits in the aftermath, good for them.  Don't fall victim to FOMO and plough more money back in until you have processed what happened.

Remember the stock market last crashed badly in 2008 GFC when the S&P fell from 140 to 70 points but went on to reach almost 5000 in 2021.  Crypto last crashed in 2018 as BTC went from $6000 to $3000, but reached an all-time high of $68,700 in 2021.  Things will improve when the market sentiment stabilises and people's fears reduce.

So take the following suggested steps to come back stronger:

  • Take a breather and disconnect temporarily from the frenzy of news overload as the residual panic echoes for a while, at least until you can think clearly without feelings of anxiety.
  • Reach out to others and talk about similar experiences, and ignore those who boast of winning and berate those for their losses.
  • Seek professional help and guidance if things feel too overwhelming to cope with by yourself
  • Make your positions secure, terminate any fun-money projects or accept these could also fall to zero.
  • Consolidate into safer coins/tokens, or exit and cash out if you need to.
  • Accumulate liquidity for the future opportunities that normally follow a crash.  You may be down, but you're not out.
  • Revisit your risk management strategy (tolerance, exits, portfolio balances) and if you didn't have one before write down what went wrong and how you would avoid this in future
  • Keep reminding yourself to only risk what you can Afford To Lose
  • Keep reading and researching.  Invest in what you understand and have an interest in.

Forgive yourself for whatever losses you incurred, there's no turning back the clock - only valuable lessons to be learned.  

How do you rate this article?

1


CryptoEedjut
CryptoEedjut

Advanced newbie in crypto. Believer in the decentralised future.


Your author request was approved...
Your author request was approved...

I wasn't even looking at my inbox for a while with all the latest goings-on (crypto, stock markets, Life). I was pleased to see an email there from Publish0x. I've not written blogs or posts previously, I'm a professional with a few grey hairs now and wanted to write something, at least to try it. Heck, who knows whether its laughed at, or will lead to a digital nomadic lifestyle and take me even further around the world... Enjoy it as much as I hope I will & stay safe

Publish0x

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.