Crypto volatility is a necessary evil. It is part of what makes it irresistible.
When you could lose 20 percent of your investment in one night, emotional stress is inevitable, no matter how little.
This unique asset requires a unique fortitude.
If owning Bitcoin Cash or any other crypto asset is causing you to lose sleep at night, then you shouldn't own it. There's more to life than money - health is wealth.
Mark is a Nigerian in his 20s. Since joining the Bitcoin Cash (BCH) community 8 months ago, he has earned more than $500 in Bitcoin Cash from both read.cash and noise.cash (majorly read.cash) and also invested a good amount from his little pay from work.
Ever since having a good amount of Bitcoin Cash in his wallet, he often checks the value of BCH compulsively. Some nights he stays up sneaking glances at his Bitcoin.com wallet app to see how well his asset is performing.
He doesn't like how often it's on his mind. It wears on his nerves and it's unhealthy!
He nearly freaked out in the previous BCH dip. Slept with a good amount and an upward trend, then woke the next morning to witness a huge dip. Owning Bitcoin Cash that some people see as the future and others say is a fraud can be an emotionally intense experience for someone like Mark who doesn't earn much in real life and has so many financial responsibilities hanging on his neck and occasionally pulling him down.
He believes in Bitcoin Cash, and a great fan among his friends but when alone, he sometimes can't help track his asset. He is aware that looking at something known with the reputation of high volatility is not conducive to his mental health.
Keeping Calm on Crypto Roller Coaster
The ups and downs of Bitcoin Cash can be one of the most stressful experiences. Especially if you have an amount equivalent to or even more than your annual salary held up in your wallet. On good days, large pumps can leave you feeling euphoric. Contrariwise, a large "red" can make you depressed. Perhaps even beginning to doubt your own confidence in the future of bitcoin cash.
It can be very scary to see our asset shrinking by the minutes. We are just victims of the moment. It's natural to be emotional about things that we care about, and money is at the top of the list.
Though not easy, to preserve his emotional and mental health he has learned to keep calm during the dips. Here is how:
Look Away - avoid constantly checking Bitcoin price
It's okay to occasionally have a peek at the BCH price but there was a time when checking the price of Bitcoin cash is one of the last things he does before night sleep; which often hurts his sleep and thinking.
With time, he realized that he can't do anything about the price swings of Bitcoin cash itself; so checking the price constantly is not conducive. Instead, he sets his phone to alert him when the price drops to a certain threshold so that he can swap it to a stable coin like USDT during the dump and then back to Bitcoin cash when it starts pumping.
Earn and Buy to Hold
As he matures in the Bitcoin cash world, he has a clearer and bigger picture. He believes in the crypto dream as the currency of the future and holds no doubt that Bitcoin Cash; as a peer-to-peer, low-cost, almost instant and reliable digital currency, won't be left behind. And that his decision hodl Bitcoin Cash for years will pay off.
Since he joined the Bitcoin Cash community, he has watched BCH go from $300 to over $700, back to $400 and then to $500. Such roller coaster movements of Bitcoin Cash and other crypto baes was very scary in the beginning, but he managed to get over it.
Now, he earns Bitcoin cash from read.cash, noise.cash and other available channels. He also buys some amount of BCH whenever he can. With the plan of hodling them for as long as possible.
He invests only what he can afford to lose.
Diversify, Diversify, Diversify
In all honesty, his crypto asset is not 100% Bitcoin cash. Though BCH takes above 70, he has some fund in Ethereum (ETH) and some other altcoins.
He is bullish on Bitcoin cash, but diversifying his asset beyond bitcoin cash is a necessity.
Michael Sonnenshein, investments director at cryptocurrency firm Grayscale, said people might be less anxious if they're not banking on just one cryptocurrency.
No matter how confident one is, I wouldn't recommend putting all your eggs in one basket.
While these may seem like small tips, but for an anxious person like Mark, they have been helpful.
At the end of the day, bitcoin cash and crypto volatility, in general, is something that should not only be expected but embraced during these years of infancy.
I would like to know what things you do to stay positive about bitcoin cash!? Even during difficult times.
a smart example to tell how Bitcoin cash is of great benefit to all of us