Dependence on cryptocurrencies has become a "new disease" of investors

by   |  VIEW 1530

Dependence on cryptocurrencies has become a "new disease" of investors

The rampant price provides an opportunity to make a profit in case you are lucky enough, but crypto volatility can pose a serious threat to the mental and emotional health of investors. Mental health is an extremely important aspect of human life, which until recently was not given much importance in the mainstream media and public discourse.

Finances and investments can play an important role in emotional well-being, while continued despair over the volatility of the crypto market can seriously hurt. This has been proved after the Terra stablecoin debacle and the instability of its unstable ecosystem, which caused the crypto market to fall and undermine confidence in the crypto ecosystem.

After the fall in prices, things got out of hand. In the subreddit LUNA appeared the suicide prevention telephone numbers for various countries, as the savings and investments of a number of investors have literally disappeared in just a few hours.

Fears and failures

Even when they have good investment knowledge, beginners under emotional pressure can make bad decisions. Along with the technical and fundamental analysis, a stable mental circuit plays an important role in trading.

Under the pressure of emotions, people are more prone to reckless actions that usually cause mistakes and serious losses. These are just some of the many factors that can affect the mental health of cryptocurrency investors: Gambler Syndrome: New investors are starting to open a large number of transactions without thinking.

Closing a position too early: Emotions can make you open a position too early and/or close a position too late, especially in the first successful transaction.
Dependence on other market participants: Many traders are guided by the signals and opinions of established market participants.

However, in order to get the maximum benefit, it is important to take a step away from such factors.
Coping with losses: The cryptocurrency market is subject to emotional trends. Prices react immediately to various statements and rumors, so it is not easy to get rid of the influence of emotions.

Euphoria of first earnings: First earnings give the trader a positive emotion, which can only encourage him to become undisciplined and later make ill-considered decisions.
Also, many crypto enthusiasts refer to FOMO or so-called.

fear of missing out on potential earnings. Another big fear in the crypto world is related to hackers. The digital, decentralized and often anonymous nature of cryptocurrencies makes these assets more vulnerable to hacking and fraud.