Because of the volatile nature of the cryptocurrency market, dealing with it can have a negative impact on an investor's mental health. The fact that the crypto currency market is volatile is part of the market cycle, and there is nothing that can be done about it, but it does have an impact on investors, particularly newcomers to the crypto world who have never experienced market volatility.
Sure, investing in crypto currency may have a negative impact on people's mental health because it involves financial resources. Consider what occurred to the UST when the LUNA crashed: picture investing $200k in a coin and waking up the following day with a $2 balance. Such a person will be anxious and emotionally exhausted.
When I first started trading, around December 2018, I lost complete access to my account when I clicked a phishing link without realizing it was a scammer, and as a result, I lost all the money in my wallet, and this happened due to my lack of knowledge. I was having an emotional breakdown and couldn't sleep at night because I couldn't stop thinking about what had happened to me. Anything involving money has a significant impact on our mental health.
How we can maintain our mental health
Maintaining our mental health should always be our top priority when dealing with crypto, and in order to avoid becoming emotionally drained or protecting our mental health, we must first accept that volatility is inherent in crypto currency, which means that the market price will always fluctuate and there is nothing we can do about it.
Then we should invest with the amount of money that we can afford to lose since we can anticipate what will happen.
One of the most essential things we should do is diversify our assets; that is, we should not deposit or invest all of our assets in a single portfolio. We should invest in a variety of coins since no one can foresee what will happen, and doing so will put us on the safe side.
Before investing, we must conduct our own investigation and get to know the individuals behind the initiative in order to determine whether it is safe or not.
When working with crypto, security is crucial, and we must keep our keys private and avoid clicking on any phishing links to risk losing all of our funds to a hacker or fake.
We should avoid looking at our crypto assets, especially when the market is down. Imagine someone who has put a large sum of money into a coin and is monitoring it 24 hours a day, 7 days a week, but isn't getting the returns he or she wants. This might lead to emotional exhaustion or worry.
Thank you for taking the time to read my post.
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