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Ordinary problems in the bear market

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Written by   205
3 months ago
Topics: Cryptocurrency

In the long bear market of cryptocurrency, life is indeed more difficult, and people’s mentality often undergoes great changes. It is difficult to be rational when making major decisions, especially when the bear market has lasted for a long time and due to this reason people's mindset are on the verge of collapse. The most feared thing in a bear market is that the cash flow will break and you will be forced to sell coins to survive. There is an iron law in the currency circle: as soon as you are short of coins, you will fall, or when the coins fall, you will be short of money. This feeling is so bad.

In fact, when you have money, you don’t feel anything when you fall down. When you happen to be short of money and you fall sharply, the tight cash flow makes you feel particularly uncomfortable. This feeling is magnified. Even during a big drop, if you have a lot of money, you might want to buy bottoms. In 2018 and 2019, the global economic situation was not very good, money was hard to make, and cryptocurrencies prices was continuing to fall. For people in full positions, it will indeed be very uncomfortable.

Therefore, continuously improving the ability to make money is the key to success. If your cash flow can last for several years, the continued decline will not have a great impact on your mentality.

In a bear market, people's mentality changes are often very different from market changes. For example, in many Telegram groups, as soon as the price drops, they start to shout that they are going to zero, and the black history of the currency is turned out. , All kinds of sarcastic and ironic words came out. As soon as the currency rises, it immediately changes to another face, and immediately these peoples said that "we are going to the moon". You will find that there are often the same group of people before and after, and their emotions have changed too much, and they are completely following the market. And his emotions are completely magnified.

Although our emotions will be more or less affected by the market price, we should try not to extreme our emotions and try not to say any bad words. Although it's difficult to be rational, at least don't shout "to zero" or "we are going to the moon" for a while, which is not conducive to the healthy construction of your investment mentality.

In the bear market, you will also hear some news about leverage and liquidation. Basically, the mainstream digital currency exchanges have launched functions such as contract leverage. Even Binance and other major exchanges has launched this service a while ago. Playing leverage in cryptocurrencies is extremely dangerous. Why do so many people go to play? It’s because of hundreds of times of leverage. If they win, they may even achieve financial freedom. The temptation is so great that many people can’t resist it, they only saw the very small probability of winning the reward, and ignored the major risk.

To play with leverage, you must have a certain gambler's mentality. They think that doing one vote may give them a break for a period of time, and they try to reverse their life through one or two operations. Even many heavy gamblers may have lost a lot. They fantasize about increasing leverage to recover their losses, and may eventually losing money even more.

The mentality of losing money is even more undesirable. It is important to learn stop loss in time, to win and to lose, life is still a long way, do not think that you can achieve financial freedom by one or two operations, but accept slowly become rich. Life is a long-distance race, and the competition is tough. There are still many opportunities in the crypto market. It is nothing to miss one or two times. Even if you make a wrong decision, you must adjust yourself in time.

After soaking in the bear market for a long time, many people may not feel much about bull market, and even feel that there is no bull market anymore. As long as the currency price rises a little bit, they want to sell and leave. So, they will not make much money. Sometimes people can resist a big fall, but they give up their coins when they rise a little, and ultimately they did not get benefit from the bull market.

It's very easy for human beings to forget key events, especially in the market. Think about the beginning of the year when Bitcoin went from over 20,000 to 60,000 in just a few months, ​and think about BNB because BNB went from over 30 to 200, these market events was happens in just a few months. Don't stay in a bear market for too long and forget the time of soaring. We still need to believe a bright future in the cryptocurrency market.

Human beings are also very bad at long-term planning. This is the human nature engraved in our human genes. So, we need to overcome these issues through long-term learning. A person who looks at problems by five years and a person who looks at problems by one year have very different mentality.

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Written by   205
3 months ago
Topics: Cryptocurrency
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we must use low leverage , number one point that is matter most is patience

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