Crypto talks from the sea: How to deal with emotions in the crazy market.

in #hive-16792211 months ago

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  I like to talk about crypto, the technology associated with that is very interesting. How each token has its technology and function to a new world that we expect to happen. I read in a daily basis interesting analyses about the market and investment strategies, including here in Hive. Probably one of the most talked about topics here is Crypto, I don't have the stats but I could guess that it is top 5 daily topics for sure. But there are many emotions associated with this market since humans are buying and selling these tokens, and like anything in ourselves, it can create a big impact on our emotional health.

  Gosto de falar sobre criptomoedas, a tecnologia associada a isso é muito interessante. Como cada token tem sua tecnologia e função para um novo mundo que esperamos que aconteça. Eu leio diariamente análises interessantes sobre o mercado e estratégias de investimento, inclusive aqui no Hive. Provavelmente um dos tópicos mais comentados aqui é Cripto, eu não tenho as estatísticas, mas eu poderia supor que está entre os cinco principais tópicos diários com certeza. Mas há muitas emoções associadas a esse mercado, já que os humanos estão comprando e vendendo esses tokens, e como qualquer coisa em nós mesmos, isso pode ter um grande impacto em nossa saúde emocional.


Coinmarketcap

Coinmarketcap screenshot from the BTC market, you can see the 60k$ pics on 2021 which started to go down at the end of that year.

  The year 2021 was huge for crypto. Bitcoin reached the top of $60,000. In that year probably people who didn't believe in crypto started to believe it that could be a new financial era. However, at the end of the same year, crypto showed some vulnerabilities, maybe the market wasn't so much independent of the regular financial market and started to fall together with the world economy crisis in addition to many polemics of crypto companies and personalities getting judicial problems. In around 1 month BTC's value declined by 10k dollars. And we started what we call the bear market. I could say that most of 2021 was the biggest "Fear of Missing Out" (FOMO) event until now. During that time I even did something that I wouldn't do nowadays, I bought $SHIBA that was growing like an avalanche, in the end, I could sell it and get some profit from it, but still, nowadays I don't see a reason to buy Meme coins anymore. One of the miracles of crypto is to bring the regular people to start to invest their own money easily without using financial institutions. Anyone can access a website and buy BTC. Of course, most of them still require KYC but still, it is an easy investment access. People start to buy something hoping that this will grow more, and then... everything goes down. I was a victim of FOMO with crypto.com, and I saw their project to reduce a lot their impact in the future. But other people also suffered from other crypto crises, such as the Terra blockchain collapse. I remember reading about people who invested all their money in that and BOOM, they lost all of them. How to deal with this emotional rollercoaster? In a moment you see the hope of getting rich, in another moment you fear losing all your money, it looks like a bit of going to the Casino and starting to use the slot machines! I remember my first time in slot machines, I went with 10$, started to get money, and got 50$. Then I continued and the money started to go down. When I reached 30$, I stopped, since I thought that I would lose the 10$ used also, so it was good to exit that machine with a $20 profit.

  The year 2023 ended with hope, people were excited and expecting big changes in crypto with the BTC's ETF approval by the US government, the market showed some hope and created a little FOMO again, but not as big compared to 2021, but still we saw tokens like Solana going up to $100. I was a bit cautious since with every new hype I am a little bit slower to accept that it is a real and based adoption growth. We didn't know what to expect from these approvals, no one knew what was the real effect. Around 10 years ago we saw some effect, we had another fall, and people who bought Solana at 100$ saw the coin a bit below $90. These people now feel a bit bad about it with reason of course, but now there isn't any choice, they can't sell the token now since they will lose money. We are living in a moment of uncertainty and we should be very careful with our investments through crypto and stocks for sure. We need to get our feelings and emotions controlled and be rational when we see the market rising and not looking for an explanation. Why do we always search for why BTC is falling? But we never look for why BTC is going up. We always do our research about these movements to be very rational and not be controlled by the market's plots. We need to be colder when we see a down event or an up event.

  O ano de 2021 foi enorme para as criptomoedas. O Bitcoin atingiu o pico de $60.000. Naquele ano, provavelmente as pessoas que não acreditavam em criptomoedas começaram a acreditar que poderia ser uma nova era financeira. No entanto, no final do mesmo ano, as criptomoedas mostraram algumas vulnerabilidades, talvez o mercado não fosse tão independente do mercado financeiro regular e começou a cair junto com a crise econômica mundial, além de muitas polêmicas envolvendo empresas e personalidades do mundo das criptomoedas enfrentando problemas judiciais. Em cerca de 1 mês, o valor do BTC caiu 10 mil dólares. E começamos o que chamamos de mercado de baixa. Eu poderia dizer que a maior parte de 2021 foi o maior evento de "Fear of Missing Out" (FOMO) até agora. Durante esse tempo, até fiz algo que não faria hoje em dia, comprei $SHIBA que estava crescendo como uma avalanche; no final, consegui vendê-lo e obter algum lucro, mas ainda assim, hoje em dia não vejo motivo para comprar mais moedas de meme. Um dos milagres das criptomoedas é trazer as pessoas comuns para começar a investir seu próprio dinheiro facilmente, sem usar instituições financeiras. Qualquer pessoa pode acessar um site e comprar BTC. Claro, a maioria ainda exige KYC, mas ainda é um acesso fácil ao investimento. As pessoas começam a comprar algo esperando que isso cresça mais, e então... tudo desaba. Eu fui vítima de FOMO com a crypto.com, e vi o projeto deles para reduzir muito o seu impacto no futuro. Mas outras pessoas também sofreram com outras crises das criptomoedas, como o colapso da blockchain Terra. Lembro-me de ler sobre pessoas que investiram todo o seu dinheiro nisso e, boom, perderam tudo. Como lidar com essa montanha-russa emocional? Em um momento, você vê a esperança de ficar rico, em outro momento, você teme perder todo o seu dinheiro, parece um pouco como ir ao cassino e começar a usar as máquinas caça-níqueis! Lembro-me da minha primeira vez nas máquinas caça-níqueis, fui com 10 dólares, comecei a ganhar dinheiro e consegui 50 dólares. Continuei e o dinheiro começou a diminuir. Quando cheguei a 30 dólares, parei, pois pensei que perderia também os 10 dólares usados, então foi bom sair daquela máquina com um lucro de $20.

  O ano de 2023 terminou com esperança, as pessoas estavam animadas e esperando grandes mudanças no mercado de criptomoedas com a aprovação do ETF do BTC pelo governo dos EUA, o mercado mostrou alguma esperança e criou um pouco de FOMO novamente, mas não tão grande em comparação com 2021, mas ainda vimos tokens como Solana subindo para $100. Eu estava um pouco cauteloso, pois a cada nova hype, sou um pouco mais lento para aceitar que seja um crescimento real e baseado em adoção. Não sabíamos o que esperar dessas aprovações, ninguém sabia qual era o efeito real. Cerca de 10 anos atrás, vimos algum efeito, tivemos outra queda, e as pessoas que compraram Solana a $100 viram a moeda um pouco abaixo de $90. Essas pessoas agora se sentem um pouco mal com isso, com razão, é claro, mas agora não há escolha, elas não podem vender o token agora, pois perderiam dinheiro. Estamos vivendo um momento de incerteza e devemos ser muito cuidadosos com nossos investimentos em criptomoedas e ações com certeza. Precisamos controlar nossos sentimentos e emoções e ser racionais quando vemos o mercado subindo e não procurar uma explicação. Por que sempre procuramos o motivo da queda do BTC? Mas nunca procuramos o motivo do BTC estar subindo. Sempre fazemos nossa pesquisa sobre esses movimentos para sermos muito racionais e não sermos controlados pelas tramas do mercado. Precisamos ser mais frios quando vemos um evento de baixa ou um evento de alta.


Pixabay

  Our emotions are very difficult to control in the financial market, even being different events compared to gambling in which the gain and loss are associated purely with random events, we need to have the same focus and maybe not add our house or all of our valued items into it. The market is volatile and it can go to the stratosphere one day and underground the other day. And also be controlled during FOMO events, you can still buy stuff but know that tomorrow these assets could be reduced a lot. And maybe we should get more courage to buy more when we see the market down, crypto showed that has a great potential to grow again in 2021 or even more. That's our hope.

  Nossas emoções são muito difíceis de controlar no mercado financeiro, mesmo sendo eventos diferentes em comparação com jogos de azar nos quais o ganho e a perda estão associados puramente a eventos aleatórios, precisamos ter o mesmo foco e talvez não adicionar nossa casa ou todos os nossos itens valiosos nisso. O mercado é volátil e pode ir para a estratosfera um dia e para o subsolo no outro. E também ser controlado durante eventos de FOMO, você ainda pode comprar coisas, mas saiba que amanhã esses ativos podem ser reduzidos drasticamente. E talvez devêssemos ter mais coragem para comprar mais quando vemos o mercado em baixa, as criptomoedas mostraram ter um grande potencial para crescer novamente em 2021 ou até mais. Essa é a nossa esperança.


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yes we need to stay in control of our emotions. There's really no need to worry about the falling price. everything goes up and down and it just became mostly a sell the news type of event. eventually prices will go back up. institutions now are buying privately thats why we haven't really seen the impact on price but once that dries up they will have to buy from the market. the havling is coming and there's just a lot to be bullish on. this could be the last big ride up. life changing.

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It's coming O.O lets goo

Yeah for sure, but we need to be better when to buy or sell...for example when it is up we are so happy that we don't think on selling it, but you can sell it and buy more of that token after it goes down lol

well that's the difficult part cuz we are also thinking at the same time what if it goes higher lol. there's the fomo that oh what if it goes higher. i guess its partly greed sa well :D. ive been thru thta. There's no perfect timing so hopefully there's just a set profit target. that will usually help :D. like for me i will probably power down to take some profit if hvie reaches 3 dollars +. put it into hbd and buy back when hive go down

Like the tides, our emotions can buoy and sink us.
The more uncertain the tide, the more vital it becomes to remain steadfast in the face of the crashing waves.

When it comes to money, it's important to manage it in a way so that it doesn't cause you to make too many emotional decisions. Especially when it's tempting.

When it comes to money, it's important to manage it in a way so that it doesn't cause you to make too many emotional decisions.

That is a precious tip that's why we don't feel much pain if it is a money that you just don't count with. That's the ideal, but we know that we are greedy sometimes!


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If anyone can't control the emotion then, I think crypto market is going to give them I huge blow. Emotions should keep aside while trading and it ensure the maximum possibility to make profit.
Pupil by a crypto after it pumped. Do you think Buying Solona above 100$ was a wise decision when it pumped 5X already in recent days? I don't think so. Even it has the potential to go 500 I would never dare to take the risk as It pumped already.

I agree but still people do it…