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Let's Handle Crypto Volatility

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Avatar for Charmy
Written by   135
3 months ago

If you hold cryptocurrency you know that it can be one hell of an emotional roller coaster. One moment you're on top of the world seeing financial freedom on the horizon.

The next, you're down in the dumps wondering if you're going to be a wage slave forever. A lot of these ups and downs occur in tandem with the wild volatility of the cryptocurrency market which never sleeps.

The economic uncertainty cause by the pandemic just adds fuel to the fire and the excessive overreach we've seen from governments around the world has left many wondering whether they will even be able to enjoy any of the wealth they've accumulated by investing in cryptocurrency.

Now while these very real conditions cannot be completely done away with. There are ways to minimize their impact on your daily life. There are things that you can do that will help you keep calm so you can call the right shots with your cryptocurrency investments and make the most of your days.

If you feel like the crypto market is regularly wiping the floor with your emotions, the first thing that you need to do is evaluate your lifestyle.

Now believe it or not, things like sleep, exercise and diet can often have a greater influence on your emotions than anything external especially over long term periods.

Keeping these fundamentals in check will also improve your productivity and decision making both of which are paramount to maximizing your crypto profit.

Sleep

Sleep is arguably the most important of the three since it has an impact on your ability to exercise and control your cravings.

In case you didn't know that the average person needs at least eight hours of sleep and getting less than seven hours of sleep causes measurable damage to the brain.

Eat

Although the health standards of sleep are more or less universal, what you need to eat is a different story.

Disclaimer: I'm not a dietitian but I do know enough to know that the most dietitians are full of you know.

Nevermind the influence of certain giants in the food industry who create the nutritional standards.

Someone needs to eat to be healthy tends to vary from person to person.

There is one very simple rule you can follow to make sure you eat healthily and that is to eat home cooked food. Microwave food doesn't count.

Keep this in mind that not only it is difficult to make unhealthy home-cooked food but doing everything in house also means that you'll have more money left over to invest on that crypto that you've been considering.

Tips

  • Get in to the habbit of doing a weekly or bi-weekly meal prep. In addition to saving money you'll save a load of time and will never have to ask your self what's for lunch and dinner.

  • You can also experiment yourself with things like intermittent fasting. Reducing your carbohydrates and eating less animal based fats.

Whatever you do, remember to eat because many studies have found that people who are hungry are more prone to taking risks which means bad investment decisions.

Most people are also dehydrated at any given time so remember to drink lots of water too.

Exercise

The last lifestyle factor you need to assess is exercise. The modern world can make it easy to forget that the human body was designed for physical work.

There are many benefits to exercise but the most relevant one for this article is stress relief. In addition to the chemical changes that happen in your brain, its kind of hard to think about anything else when you're pumping iron or sprinting up a hill.

Similar to diet, how much exercise you need and what kind of exercises work best is something that you need to figure out of your own.

I recommend working out four or five times a week and tackling the movements that are natural to a human body.

These are: push, pull, squat, hinge, lunge, press and carry. Walking, jogging and running can also be a part of your exercise routine.

I know that many of you are currently in lockdown and gyms or sports facilities in your area are probably closed. But there are a lot of different home workout that you can do.

Now, if you have a solid sleep schedule, a healthy diet and a robust exercise regimen but still feel that you're being psychologically wrecked by the crypto market on a daily basis, the next thing you need to do is ask yourself if you've invested too much into crypto.

If more than 90% of your money is invested in cryptocurrency, you might want to consider taking a bit of profit. If you're not sure if you're over invested in cryptocurrency, here is a simple thought experiment to find out.

  • Every country on earth simultaneously bans cryptocurrencies and they all go to zero. You also lose your job after having an aggressive mental breakdown because of this. Can you still pay your bills next month?

The fact of the matter is you need some fiat in the bank expecially during times like this. More importantly being over invested in cryptocurrency is going to make it really hard to exercise good judgement when volatility strikes.

Manage Expectations

If you are certain you've not over invested in cryptocurrency but still feel that the crypto market rules over your emotions then take a second to think about the expectations you have for your investments.

This is because the disconnect between expectations and reality is one of the primary drivers of emotional distress. It's why religions like Buddhism consider desire to be the cause of human suffering.

Its not really the desire itself that's bad it's the expectations it generates. As you may have noticed, there is no shortage of unrealistic expectation in the cryptocurrency space. Heck almost every cryptocurrency articles, videos, news is about hot this crypto can go 100x and more in a certain time frame.

All this hype makes really hard to set your own expectations for the cryptocurrency you're invested in.

Price predictions are also routinely covered by cryptocurrency news outlets which really doesn't help.

Take a break

Too much of anything is no good for you even if it's a new asset class consisting of technologies that will change the world forever.

You might gain some new insights into your investments when you take a step back for day or two. Most importantly having more in your life than crypto means it will play a smaller role in your mental health on a day to day basis.

I know that the current situation means it's not possible for many of you to go out and do something. Much less go on any sort of elaborate or trip.

Final Thoughts

A lot of what goes in your mind starts with your body. Getting atleast eight hours of sleep is necessary for the average person. Just because the crypto market never sleep doesn't mean you should stay up with it.

Ensuring you get enough rest will make it easier to take in the information you need to make good investment decisions.

Having a proper diet is also critical. Eating home-cooked meals is an easy way to stay away from the toxic oils, processed sugars and artificial fillings that make you sluggish both mentally and physically.

It has added benefit of saving money that can be reinvested and also saving a lot of time if you decide a meal prep.

Adding exercises to your daily routine can relieve stress, improve the quality of your sleep and give you a little break from your dailh grind.

Remember there is such a thing as too much crypto. If you can't seem to shake off the emotions the market's making you feel, well it's probably time to take some profit or accept your losses and just step a way for a bit.

Taking a day or two to get out of town or reach out your friends and families is a great way to blow off stream and it will add the much needed balance that often disappears when you get too deep into crypto.

After all we need people to brag to when we all get filthy rich. That's it for today and have a bless day everyone.

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Written by   135
3 months ago
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Comments

Yey, thanks for this reminder about keeping everything to balance. I think, I should really manage my epxectations.

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3 months ago

After all we need people to brag to when we all get filthy rich. ... Ahhahah.. nice one... Good article to remind us of balance! Just before reading your article i saw my read earning go down so i had 3-second heart jump that time. Hehe. Had to remind myself that it is the normal flow of the crypto life. Lols.

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3 months ago