Trading is not the only way to explore the world of digital currencies — you can create content, make Youtube videos, listen to podcasts, etc. You will feel more motivated to trade crypto currencies if you see your relative succeeding in it. This is why people begin with small trades and then grow to make larger profits.
Because of the volatility of crypto assets, and the live market that is available 24/7/365, it is important to keep an eye on market movements to avoid losing your money. This can lead to insomnia, fatigue, increased anxiety, and a fear of failing among traders.
We will be discussing how to avoid cryptocurrency addiction, as well as how crypto traders can reduce stress and depression associated with cryptocurrency investments during the crypto winter.
How to overcome crypto addiction
If you continue to play with crypto projects even though you’re losing your appetite, sleep, or money, then you may be suffering from crypto addiction. It is also possible to not realize the need to quit because of an insatiable desire to monitor market movements and keep abreast on crypto news.
While cryptocurrency isn’t addictive by itself, it is important to remember that when our brains are involved, anything can change. You can view your portfolio and see the interesting content provided by YouTube in real time. It may even make you addicted.
You may become addicted if your time is spent researching, trading cryptocurrency, or monitoring charts. Ineffective strategies to stop trading or increase risk are signs of severe crypto addiction. A loss of interest and motivation in social activities and other pursuits, stress, depression and mood swings, insomnia, and poor mental health are all signs of too much dependence on cryptocurrency in your day to day life. How can you get rid of depression and stress in cryptocurrency?
You can end your crypto addiction, and any stress or depression that comes with it. Limit the amount you invest in crypto assets and don’t consider it your primary income source. Instead, you should look for other opportunities to make money within the crypto space.
You only need to learn skills that are relevant to your chosen career. You will need to be able to understand the technologies, such as artificial intelligence, the Internet of Things and augmented reality..) These are used to create immersive worlds.
Related: How to get a job on the Metaverse and Web3
You can also take a vacation to your favorite destination, meet up with friends who don’t care about cryptocurrencies, or start a new social network to help you recharge. Don’t keep your worries and problems to yourself. Talk to others. Sometimes, sharing your problems with someone you trust can help you heal.
What does crypto loss mean for your mental well-being and mental health?
The exhilarating highs, and the crushing lows can cause addiction for some cryptocurrency traders. Inexperienced crypto investors can feel emotional pressure due to crypto losses, even if they have a good understanding of the investment. Loss aversion is a tendency to develop when one suffers losses more often. Loss aversion is when the disutility of losing something is greater than its utility.
Additionally, significant losses in crypto might have more devastating consequences than what generalizations about losses or gains might suggest. For instance, wealth loss could not be made up by changes in consumption patterns or increased work hours. Instead, it would be recouped over many years through positive crypto market returns.
If substantial wealth losses are not recovered over a period of time, they can start to impact the victim’s mental health. For instance, one of the top 10 most valued cryptocurrencies, Terra (LUNA) —now called Terra Classic (LUNC) — saw its price drop by more than 98% in a single day, causing anguish among crypto investors since they may have lost a significant amount of money without realizing the risk they were taking. Over time, anxiety and losses in cryptocurrency investments can cause depression.
How do you manage emotions in crypto
Basing one’s decisions on emotions causes your current state of mind to make decisions that are contrary to logic. Trading and buying cryptocurrencies can be fun and lucrative, but that’s because your brain processes them.
The risk of making irrational decisions when investing in cryptocurrency is also possible. To reduce risk and prevent loss, it is important to control your emotions when investing with cryptocurrencies.
It is important to ask yourself how cryptocurrency can fit into your financial plan. Are you aware of the volatility in cryptocurrency markets and the potential risks associated with digital currency investments You could lose your money if you don’t know the answers.
Also, it is essential to research as much as you can about the cryptocurrencies that might be purchased and the technology that powers these cryptocurrencies. You should also read carefully the whitepaper of the project, particularly the section on tokenomics. Also, look for initiatives that have vibrant communities. These things won’t guarantee success but they will help you understand the projects that you are investing in, as well as the dark sides of cryptocurrency.
Related: What is Tokenomics and how does it work? A beginner’s guide on supply and demand of cryptocurrencies
You can avoid making emotional decisions by finding a platform or exchange that will help you reach your goals. It is important to know your spending limit so you don’t lose too much. Cryptocurrency investment comes with high risk. Respect the limit you set once you’ve established it. You shouldn’t spend more on impulse or because you feel overwhelmed.
A limit order is another practical protection measure you can take. Limit orders can help you avoid losses and secure gains if crypto prices fall. You can set a limit order to determine the lowest price at your digital currency.