Your mental health in crypto
Hello, Baanx community! This is Anastasiia, your Social Media and Community Manager. If you didn’t already know, 9-15 May is Mental Health Awareness Week, and I would like to focus on the topic of mental health in trading and anxiety in crypto.
Your mental health matters; sometimes, it is not apparent unless you come to the edge of the tension and find yourself broken. In the bear and bull markets era, with many spikes and drops, it is easy to lose yourself in the trading charts. You start off with unrealistic expectations, only to become full of regrets and anxiety in the aftermath. This predominantly happens more often in crypto rather than traditional trading.
According to a CNBC survey, 33,5% of crypto buyers have 0 knowledge about the value and potential of their purchased cryptocurrency. They have been solely driven by fear of missing out on prospective gains. Crypto can quickly become a dopamine addiction, offering optimistic and bright expectations the traders nurture themselves with. This indicates that investors are not confident in crypto, which in turn causes great anxiety over losing their investments due to high volatility, alongside unprofessional portfolio management.
Let’s run a simple test. All you have to do is answer “yes” or “no” to the following questions to find out how crypto uncertainty impacts your mental health:
- Do you struggle to sleep well?
- Is it hard for you to concentrate?
- Do you constantly check your financial portfolio and prices throughout the day?
- Do you feel nervous and uncertain about your crypto?
- Are you in the position of being annoyed, excited, scared, etc., when monitoring crypto markets?
- Do you eat less or more than usual?
- Is crypto the only topic you discuss with your friends and family?
- Have you cut down the amount of social activity and socializing with other people?
- Do you have muscle pain, cramps, nausea, or dizziness?
- Do you have irregular heartbeats when trading crypto?
If your answer is “yes” to 50% or more of the above questions, you might need to consider changing your daily habits that can help improve your mood. That’s why we’ve prepared some tips for you to overcome anxiety and stress in crypto, as well as balance your mental health:
- Evaluate and accept risks before entering a trading deal.
- Trade a system - no “one-time unplanned purchases” are good for you.
- Diversify your portfolio. Investing in a range of cryptocurrencies often reduces the risk of significant losses.
- Make sure to eat healthily, exercise your body and sleep enough, as your brain effectiveness depends on your body health.
- Avoid unrealistic expectations of golden eggs.
- Allow time for your investment to bounce back if it falls.
- Avoid impulsivity in trading.
- Carry out a risk management assessment.
- Stay focused and calm. Do not trade if you do not feel well or are over-emotional.
- Always limit the time you dedicate to trading. Do not go 24/7.
- If you feel unable to cope with stress due to volatility, seek professional help.
Do not let the crypto space take your life over. The more your life is balanced with other things, the more control you have over it. Enjoy being not only a crypto investor, but also an excellent professional, friend, child, pet lover, partner, etc., and remember, whatever happens in the crypto market, you are not alone. I wish everyone productive crypto investments and balanced mental health.