Nowadays, most of the people who wanted to earn money in short period, they invested in Crypto currency. Trading Crypto currency becomes the drug for the current generation. For trading, you have to buy a coin and just wait, so that the price of the crypto currency goes up and after this, you should sell it at higher price. But sometimes trading or investing in Crypto currency becomes stressful for the users. In this blog, you will read the ways to stay sane while trading Crypto currency.
Ways To Stay Sane While Trading Crypto Currency:
- Set Trading Hours: Keep in mind; the exchanges are open 24/7, so you can trade at anytime. But it is advised you should set for you trading hours like between 9 a.m. and 5 p.m. So, after trading you can live like a normal person.
- Keep your Emotions Neutral: Normally, the problems comes in trading are fear and greed so it is advised you should keep your emotions neutral. Hence, you should focus on the framework of the trade like you should not feel too good about the wins and do not feel too bad about the losses. And most importantly, you should see how you deal with the losses? You should control your emotions, as it is important for your mental health and financial performance.
- Before Trading, Make A Plan: To maintain your mental stability, before trading you found first make a plan like what you wanted to do with trade, how much risk is involved or how much reward you will get on trading. If you calculate the potential losses and gains on trade, then you will get less impulsive on your emotions.
- Learn From Your Loses: Remember, every loss will teach you something about trading. If you suffer loses, do not get anger because you will learn something from every loss. And you should analyze the situation and check that did you make the wrong decision. If you analyze coldly, then you will understand the reasons of loses better.
- Never Invest Too Much Money Which You Can’t Afford: This is the most important rule of Crypto Trading i.e. do not invest too much money on Crypto currency which you cannot afford. This means if the loss occurred then it will not affect on your mental health. In trading, you should have the capacity to bear all the losses and profit.
- Do not Totally Depend upon Trading: If your livelihood is totally depend upon trading, then it will put too much financial pressure and trading becomes harder. Hence, it is advised you should take the pressure off and invest in multiple streams.
- Appreciate Your Crypto Earnings: It is advised you should appreciate your Crypto Earnings whether it is small or large amount. After earning, you should think how long it will take you to earn the same amount through other means. Keep in mind the average annual return of the stock market is approx 10 –11%.
- Have Purpose For Trade: Remember, you should have the motive or aim for entering into cryptocurrency trading. Always keep in mind that in cryptocurrency trading you will sometimes wins and sometime loses because cryptocurrency market is governed by large whales. There are sometimes where it will better, if you do not gain anything from trades rather than welcoming losses. Hence, you should protect your cryptocurrency by keeping yourself off from some trades.
- Do not Believe What You Read or Hear: As you know people share stories about their profitable trades and do not share about their worst trades. But all traders experience both profit and loss in trade. Hence, it is advised you should not believe what people share about their trading experience.
- Do not compare your Investment Results with Others: If you compare your investment results with others, then the feeling of greed and envy can have a negative impact on your mental health, as it related to money. You should accept that all the people have different financial skills, time and money for trading. So, it is quite obvious that all the traders will get different returns — even if they are investing in the same cryptocurrency.
- Do not Fall For Scam: There are some chances, when people lose their investments if they deposit the crypto currency in a fraudulent digital wallet. Hence, you should be aware during the transaction of crypto currency.
These are some of the ways in which you should stay sane while trading Crypto Currency. For more information about Crypto Currency, view our other articles.