Crypto does strange things with your mind! It's fooling and tricking us!

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Avatar for TheCryptoGambler
3 years ago

I am not complaining that I got into crypto a little over 4 years ago. Even not if you know that I did enter the market almost at the end of that crazy bull run. After some great wins, I kept on investing and suddenly the bears did enter the market! That was a pity. But I was hooked! I kept on blogging about it, playing games and so on...

The problem with crypto is that it is so hard to take a profit. We always want more. Waking up in the morning and seeing one of your investments booming, gives a great rush!

FOMO

We want more tokens and like to convert them in a spreadsheet of via a webpage or app into our local fiat currency! Even the ones who didn't invest do the same. We do want to see the virtual profit rising day by day, we do want to see the tokens we are holding going up. Like I wrote several times above we do want more!

This makes it hard to let go some tokens. I still have tokens in my portfolio since the early beginnings of my crypto adventure! It is hard to let go, because I don't want to sell them with a loss. But if I do look back and if I had swapped them into BTC or another top 10, that loss would have been compensated a long time ago even would have made a profit on it!

The ones involved into cyrpto do know the term FOMO very well. The fear of missing out. But when FOMO kicks in, you are probably already to late at the party.

FOMOOMP

Then on the other hand there is the one I do like to call FOMOOMP. The fear of missing out on more profit. You know the situation that you have made a decent profit on a particular token. So you ask yourself the question, should I get out and take my profit or should I stay in, because I do think that it can go closer to the moon! Often suddenly after waking up and checking the market you are kicking yourself because the market went south. And if the market goes south it often goes south fast!

We all know that we do have to take some profit from time to time. But we also do have some occasions in which taking the profit wasn't a good idea! This of course does hold us back big time and does influence our decision making process. We are humans and our mind does trick us time after time.

Take for instance a situation I am dealing with. Yeah I was smart enough to take some profit. A part of the profit was returned to the real life account and the other part was parked into stables. A wise move. But, yeah there is always a but. The banked part is still in stables. I know I do have to make a decision it but I do keep postponing it! When a bear market is in full swing, there is no better place for your money than into stables, if you do want to use it again into crypto. If not, just withdraw it back to your real life account!

The future!

Luckily for me I do have a virtual profit, but a real life loss. I do consider all money in crypto more or less written off until it has returned into real hard cash again! I am living today and not tomorrow!

My dream is to be able to recover all fiat investments into crypto without hurting my portfolio too much. But that is only possible if you take profit from time to time. In stead of keeping it in cryptosphere! Luckily I am in a situation that my life won't change if crypto would vaporize over night!

I don't have the dream or to illusion that crypto will turn me into a millionaire. I was too late at the party, didn't invest enough and made too many mistakes in the early years!

Nor do I have the illusion that crypto will be able to replace fiat money completely. Maybe it will get a share of the pie but no idea how big that share will be!

On the 31th of this month, it is time again for my portfolio overview! And I know the questions which I will be asking over and over again. It is a vicious circle! One of which it is hard to get out of it!
Each day in crypto is a day in which we all have to make decisions. Even for hodlers.

Do you know this situation and asking yourself time after time the same questions. And probably answering time after time with the same answer?

Cheers,
Peter

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Avatar for TheCryptoGambler
3 years ago

Comments

Whatever bch I earn, I convert right away to fiat money. My investment is for my family's well being. Right now, I plan on holding some and not converting all.

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3 years ago

We all have different approaches. Happy to read that BCH is increasing the well being if the family. 50% of my earning here go to a dedicated BCH wallet. The other 50% remains here so that I can support other authors!

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3 years ago

I agree, I don't think crypto is taking over fiat any time soon, and perhaps never. I posted something on noise the other day pointing out that there is approximately $1.2 quadrillion USD worth of currency in the entire world, and when you look at the market caps of even the top three cryptos, it doesn't even add up to some of the larger companies in the world like Amazon and Apple, which are trillion dollar market cap companies.

So, crypto has a loooonnnngggg way to go catch up to the value of fiat. And don't forget that in 20 years the value of fiat may double or triple. So that's makes the catching up part even more difficult.

That aside, one principle I have often used in stock market investing, which I think can be applied to crypto as well, is when there is a profit, you simply cash out 50% of your investment and let the other 50% continue to ride.

In this way you get the best of both worlds. You get to take some profits AND you still leave some money on the table to get some more.

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3 years ago

I do have some coins which are enjoying a free ride, which is just great! And those rides are there because I did took some profit, like you wrote!

Fiat will never double in value due to the fact that the countries keep on printing! There was a time that fiat had to be backed by gold! Now it is backed by thin air! Thanks for the comment!

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3 years ago

You are mostly correct about fiat, and the constant printing of more of it. But is it backed by thin air? Only in part.

Keep in mind that behind all of that money are companies, products, services, raw materials, resources, and of course consumers. GDP is probably the strongest measure of the real value of any currency.

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3 years ago

Oh yeah I remember now, you told me in the football group! Amai!

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3 years ago

I agree that it also gives me a lot of peace of mind that I have already written off the money invested as play money. I also know I will not become a millionaire, mostly due to the lack of time and effort put into it, but I can't help but have unrealistic dreams sometimes haha

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3 years ago

We all have dreams and by reading this you did completed one! Having just free crypto, no hassle, less worries! Dikke duim 😁

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3 years ago

Haha nice, are you Dutch too? Yeah worry free is the way to go for sure!

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3 years ago

No Dutch here but a Southern neighbor! Working in the NL!

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3 years ago