In Cryptocurrency, Only The Crazy Survive
There has been a stereotype surrounding the cryptocurrency market that it is incredibly easy to become rich by investing in this market. The longer you are in this. market, the more be proven true. Crypto is one of the greatest ways to change your life financially, with volatility making other markets seem boring in comparison. But it is this volatility that is needed to send prices to those astronomical levels that is also what forces most people out of this market.
“You live by the volatility, and die by the volatility.”
What the stereotype of becoming rich in the crypto market doesn’t tell you is that you will be mentally tested, unlike any other market before being able to reach the finish line. In fact, most people will not be able to last through the onslaught of large price drops, constant bad news, loss of money, and maybe because they got into the market initially for all of the wrong reasons. Whatever the reason is, those with weak convictions will eventually be weeded out from the group, with only the strong surviving.
Now when I say the strong, I actually mean the strong with a little dose of craziness.
Most people succumb to the fear of losing their initial investments. Most people also listen to their peers and would lose confidence and eventually sell once they hear their friends, family or even the news constantly bash the cryptocurrency industry. Most people wouldn’t be able to hold onto a new asset class that is going through a multi-year downward trend with only the hope that prices will recover.
Just think about everything that has taken place during the last year. Last November Bitcoin reached a new all-time high price of $69k. Only to drop all the way down to $15k. now. If that price drop wasn’t difficult enough. There have been constant “black swan” events with huge crypto companies/funds becoming insolvent. Ranging from 3AC, Celsius, Vauld, Voyager, Hodlnaut, BlockFi, FTX, and now potentially Genesis. Even if you did have a strong conviction and were able to fight through all of the FUD this year. Many of these people would lose or have their funds frozen on these services. Likely never seeing them again. An event that would be enough to sour even those of us with the most conviction about the crypto market. Becoming rich, or maintaining your wealth in crypto is more difficult than most outsiders imagine, testing you mentally as you have never been tested before.
It goes even further than just having the conviction to HODL during times of market panic. While most people believe that you become rich during the bull market. The truth is that is when you are bearing the rewards of all the hard work that you put in during the bear market. Crypto wealth is built during bear markets. During the last cycle, Ethereum could have been bought for $80, Solana for $2, Bitcoin for $3,200, Dogecoin for 0.00001, Cardano for 0.02, and the list goes on. These prices were available while the market was tanking or moving sideways for months on end. Similar to what we have been seeing in the market recently.
During these “boring” and even hopeless times in the market, it takes a certain level of craziness to continue heavily investing in crypto. Those who put in the hours researching the market, experimenting with new protocols, and being able to form their own opinions and maintain convictions through these periods are the people who will succeed. Not everyone can do this.
The people who have been able to survive this last year in crypto have lived through one of the most turbulent periods in the history of cryptocurrency. You are now considered to be veterans or OGs in this market. But now the real question is coming into view. What will you do during this time of market panic? It’s likely that eventually, the market will recover and even soar to new heights. Those who go all-out now and accumulate into the best crypto projects will be able to change their lives forever. The only question is if you have the necessary level of “craziness” to be able to survive and thrive in this turbulent market.
How about you? How are you handling the recent chaos in the crypto markets? Are you continuing to accumulate?
As always, thank you for reading!