Majority of cryptocurrencies have been operating for months without experiencing much growth and it can have both positive and negative effects on the mental health of most Crypto traders and investors.
With over 70% of the market cap lost in the 2022 crypto bear market, the market capitalization of cryptocurrencies reached $3 trillion height during the bull market of last year, but it is presently struggling to reach $1 trillion.
There are certain suggestions that traders and investors can take into consideration as the crypto winter deepens, in order to deal with market volatility and stay current throughout this bearish season. Some of which are;
1. GETTING A JOB.
Most traders and investors concentrate on making a living by trading and investing on a daily or regular basis, monitoring the charts to find possible opportunities for a more bullish or bearish trend. With this in view, Traders and investors are advised to take up additional work or jobs either full time employments or as side hustles which may enable them to purchase preferred cryptocurrencies without having to liquidate their holdings or run out of money. It acts as an extra source of income so that investments can be made without having to be paid for.
2. HOW DO YOU REACT TO THE NEWS?
The daily news is a catalyst to some market movements. How you react to the news is another intriguing factor to a panic sell, hodl or buy signal depending on each trader’s sensitivity and daily intentions. Information shared via social media and several other news outlets can prompt market movements and activities by traders and investors. To avoid missing the news and losing your portfolio, it is understandable to ignore it if you don’t plan to sell.Daily variations are irrelevant if you don’t intend to sell.
While some news is bullish and boosting your trade, other news can clearly bring bearishness. Learning to control or manage your reaction to the news can have a great impact on your mental health.
3. MINIMAL INVESTMENT.
Investments play a crucial role in passive income generation. Always invest what you can comfortably afford to lose until the bull market returns, It is also advisable to DCA when investing.
What is DCA? DCA is an acronym for Dollar Cost Averaging. It is an investment theory that involves systematically investing equal amounts of money at regular intervals, regardless of the price of a security. Dollar-cost averaging can reduce the overall impact of price volatility and lower the average cost per share. This practice helps you control the amount of money you invest into a project or product at a particular time hence, preventing instant massive losses.
4. PLAN FREE TIME.
There is a famous adage that says “all work and no play makes Jack a dull boy”. This saying may sound old and silly, but it can be attributed to one’s health and well-being.
Spending your time trading and investing will yield many positive or negative results. One of the downsides of not getting enough rest is burnout or malfunctioning of the body system.
It’s good to be absorbed in your work, but it’s also important to rest and spend time with loved ones. Not only does this habit keep the trades out of your mind for a while, it also creates time to bond with family and friends, which can improve your productivity and overall health. Crypto veterans recognize that bear markets can last for a long time and eventually end, but new traders jumping on the crypto bandwagon due to hype and peer pressure may not. One user suggests the importance of getting some fresh air and walking. Remember, the best investment you can make is in your mental health.
5. DOCTOR VISITS.
Yes, you don’t have to be sick. To be at the forefront of mental health, we must put our health first,seek medical aides, counselling and therapy.
No one will do this for you, but regular check-ups will keep your mental and overall health in balance.
There will always be a pump as much as they will be dump in the market cycle.
Don’t sacrifice your health for your portfolio,Take profits and stick to healthy dieting.
6. LEARN TO TAKE PROFITS.
When you make profits from trades or investments,learn to pay yourself first before reinvesting or saving.
7. THINK AND PLAN LONG TERM .
How often do you panic about a market downturn or an opportunity you may have missed? This may contribute to some of the health issues some investors and traders face.
Planning is fine, but it’s more important to stick to a strategy or plan that will guide you while taking trades.
Focus more on the long term and forget about daily price fluctuations. The crypto winter could last for years, but ultimately it is a cyclical event followed by a bull market. Planning also involves getting mentored or coaches before venturing into an investment.
