Peace of mind when investing in cryptocurrencies
Investing is not only a question of capital but also a battle with oneself. As humans, we are not happy when things do not work out. We expect results, preferably quick and positive ones. Therefore, when investing, especially in cryptocurrencies, we should remember to use common sense and not let our emotions overwhelm us.
The cryptocurrency market is a very active market, if I may call it that. Prices of assets, tokens fluctuate constantly and can change at any time. I am leaving out unwanted trading ploys like Pump and Dump here. I'm talking about a healthy normal market or cryptocurrency pair. When we invest in cryptocurrencies we want to achieve some tangible benefit. We put our money whether in a so-called HODL or DeFi or a regular cryptocurrency exchange and expect a return. Preferably the highest possible return. And here comes to mind...a thought. Our brains don't like it when we lose money. Let the first stone be thrown at those who bought an asset at a given price and the next day it was 20% cheaper. I did this maybe a couple of times. You don't even know how frustrated I always got when this happened.
In a situation like this we sometimes have to keep a cool head. Bitcoin's recent movements are a simple example. We bought it for $53,000 and a few days later we sell it for $58,000. A huge profit of $5,000 can be said in the blink of an eye. But what if the situation is reversed? We buy at the top and watch the price of the asset fall. Here we have to decide for ourselves. If we take the so-called FUD approach to the price and sell the asset because we are afraid of a loss, we lose twice. Firstly, we lose the money we invested because we sold lower. Secondly, we lose time and energy. Why invest if you are so afraid of losses? It's not always easy, it's true, but you have to learn to act wisely.
This is my little advice for those who feel uncertain about cryptocurrencies. This is the market and you have to learn to tame it and understand it. When we are more advanced we will notice certain features and movements of the market that will allow us to assess certain aspects of the price or the future of the cryptocurrency.
