Avoid This To Keep Your Bitcoin Sanity
Investing into bitcoin and crypto can be a pretty stressful experience for many. Being perhaps the most volatile asset there currently is, constant fluctuations of the price quickly moving up or dumping down. And then there are those make it even harder on themselves by trading with leverage, or taking out crypto backed collateral loans. Meaning that any sudden large price dump at the wrong time, could liquidate large groups of people, leaving them with nothing. There is no worse feeling than having a decent sized portfolio, feeling that you have some of the greatest assets for the future. That just by holding onto them for an extended period of time will set you up for a successful financial life. And then all of a sudden, that future is robbed from you. But that's not what I'm going to be talking about today. Today I want to discuss another issue that I constantly see throughout the crypto marketplace. That is constantly comparing your crypto portfolio to others. This doesn't only apply to the crypto space and has been famous for ages; "trying to keep up with the Jones." But let me tell you why it is so much more prevalent and dangerous in the crypto world and why you need to be careful to avoid it.
The first, and perhaps biggest reason why you need to be much more mindful of this in the crypto space is because the crypto market is much, much more dangerous than other markets. There are new coins created every day. And then there are new rugs pulled out from out of these coins everyday. There is a real risk that the coins that you do invest into will go to zero, and you have to be ready for it. Your friend or someone you follow on Twitter may have gotten rich from buying that coin that did a 1000x, but that is when jealous and the dangerous competitive spirit comes into play. If they did it, then definitely I can too. They earned this amount gains, so I will invest even harder to outpace them. Only for that coin to not go anywhere. It is a real risk that we need to be aware of. Also keep in mind that crypto markets are largely unregulated, and are perhaps the last free market left. There is heavy manipulation. Influencers will say one thing, and do another. Which usually involves dumping on their fans to get the highest possible profit.
Let's go back to investing into those possible 1000x coins. I tend to avoid them. The crypto market is already risky enough the way it is. Instead, I am old-fashioned, and invest in only the projects that I truly believe in. A lot of these tend to be blue chips such as bitcoin and ethereum. Sure, they may not, and probably won't do a 1000x from here. But a 20x for both of them or more is a real possibility. Then taking into account my entry price point for both of them, and the prospects become much better.
For some reason, people who invest into crypto tend to be much more visible about their portfolios than any other investing markets. I'm not sure the reason for this, but there could be a few reasons for this. A lot of the people who have hit the lottery so to speak in the crypto industry, become very accustomed to the price going up, to them not being able to do anything wrong. They begin to think highly of themselves, and they want to show everyone else that they were right. After all, many people in the crypto market were told that they were crazy for investing into it. They were told that they were wasting their money and that prices would go to zero. And they want to show everyone how wrong they were. Perhaps that why the idea of buying a Lamborghini with crypto gains became so popular. Giving off a certain image became quite popular in this market, especially with the prevalence of social networking sites.
While I have never fallen into the traps of trying to match someones lifestyle, I will admit that in the past I have fallen into the trap of comparing my portfolio to others close to me. The problem is that while I was very early into investing in crypto, and am very happy with the portfolio that I have been able to build. But these people were incredibly early, within the first few years of bitcoin's life and captured all other crypto that would follow. the regret would possibly stem from the fact that some of these people tried to get me into bitcoin during those early, early days, but I had other things I was more concerned about. But, after I did get into crypto, that is when I wanted to catch up and surpass them. Which may never be possible. So during my early years in crypto, I should have been happy and even proud of how I was transforming my life financially. but instead I was feeling like I was coming up short when compared to those people. The fact is that we are all on our own path, on our own time schedule and we should compare ourselves to no-one other than ourselves. That is how I look at it now, and my crypto journey has been much happier for it. Not only that, but it has helped me to appreciate the progress that I have made much more.
The problem that comes when comparing your portfolio to others around you is that it might lead you into making dumb decisions. Like I mentioned up above. That is what might convince you to try buying that coin that no has and will ever hear of. Or perhaps try to make it all with one trade using heavy leverage. Whatever the case may be, always be careful to avoid that situation.
It is really is simple advice. Live within your means, and don't buy the things in life that you don't need. Then use that extra money to invest into great things that will appreciate over time, allowing you to build wealth and keep doing this for an extended period of time. That is all you need to do to become wealthy. As you continue to progress along your financial journey and begin seeing your wealth grow. That is when life will become a little easier and you will begin to notice things that you couldn't see before. Far too many people get in the way of their own success with the decisions that they make, and also the people that they surround themselves with. People will complain about not having any money, and nothing invested for the future, but then they will still buy coffee from Starbucks on a regular basis, or buy the new iPhone when it comes out. People will say that they are tired of how their life is, how they don't have money, and wish something will transform their lives. But then they won't actually put in the effort to actually change your life, or get that 2nd job that could be the start of change. The things you do in your free time, will be the things that make all of the difference and change your life. Doing nothing during your free time but watching Netflix, means that nothing will ever change. And then look at the people that you surround yourself. Nine times out of ten, people will end up exactly like the people that are around you. So choose your surroundings carefully.
Now when it comes to bitcoin, ethereum and cryptocurrency, these are some of the greatest tools and assets that many of us could ever have to change our lives. I truly believe that cause the largest transfer of wealth the world has ever seen. But you need to be putting in the work now. Many of you who are reading this today are still early and could be involved in that great wealth transfer. The important thing is that you need to be smart and invest into the right projects. That is what will make the difference. Don't get in the way of your own success, and be careful about comparing your portfolio to others. If you do that, continue to buy and hold the great crypto projects, and then find ways to make a passive income from it, then you are already on your way to the crypto moon. The only question is when is the departure time on that ticket to the moon, but that is half the fun of it.
How about you? Do you often find yourself comparing your crypto portfolio to others? What are some ways that you got in the way of your own crypto success?
As always, thank you for reading!
