**How to overcome greed when trading crypto?**
Greed can manifest in two ways in the crypto world: First, it's the reluctance to take profits, and second, it's the feeling of "being able to gain more," which leads to using high leverage or increasing position size. So, how can you address this greedy tendency?
1. **Understand that greed is just an emotion**
Similar to FOMO (Fear of Missing Out), greed is an illusionary feeling created by the mind. Disregard this emotion because it's temporary. Instead, think logically and rationally. When dealing with the market, rely on logic, not emotions.
2. **Recognize that what goes up will come down**
The crypto market operates in cycles of approximately four years. There's always a bull market when prices rise and a bear market when prices fall. There's no concept of perpetual growth without corrections. Understand that when the market transitions from a bull market to a bear market, unrealized profits can turn into unrealized losses or even realized losses.
3. **Taking profits is essential**
The only way to accumulate wealth is by taking profits. If you don't take profits, your portfolio won't grow. Remember that even small profits are better than losses.
4. **Set realistic expectations**
You're here for the long term, as mentioned earlier. Crypto follows cycles, and there's continuity. On average, it takes 2-3 cycles to achieve financial independence. Don't view crypto as a "get rich quick" scheme. Set realistic expectations and continue striving to maximize your efforts here.
