The cryptocurrency market has always been an arena for emotions and unexpected price fluctuations. In 2009, when Bitcoin was created, the world witnessed ups and downs, massive rises and crises. In such an external environment, it is not always easy to abandon your correct strategy and remain calm.
Imagine an investor who has lived through several boom and bust cycles of the cryptocurrency market. He has gone through moments when everything seems to be on the path to financial success, and moments when everything seems to crumble. At each stage, he collected information, analyzed graphs, and listened to the advice of “experts.” However, at some point something goes wrong.
A mixture of different feelings and thoughts appears in this investor's head. He is asked questions: “Sell or hold?”, “Who is right, the experts or the charts?”, “Can it, of course, rise even higher, or is this already the peak?” It is at this moment that emotions begin to haunt a person. There is a desire to sell your altcoins for an immediate win, and then buy them back when prices drop.
It's natural to feel anxious, especially when money is on the line. But it is important to remember that emotional behavior can cause failures in the market. Many investors, fooled by their natural feelings, make decisions that subsequently lead to losses.
There are two types of decline that particularly amplify these emotional fluctuations. The first category are those who decide to sell their assets, forgetting about their aggressive policy, radically fast, but with little gain. They forget all the work, research and analysis done for the sake of 10-20% profit. As a result, they may miss out on opportunities to make much larger profits in the future.
The second category are investors who exercise control over their assets and make decisions to purchase assets at the peak when the market is in a state of fomo (fear of missing out). They listen to dozens of experts predicting the moon and feel compelled to invest, even if they've seen plenty of similar situations before.
It is important to remember that the cryptocurrency market does not always behave favorably. Selling assets with the intention of buying them back at a lower price is not a sustainable strategy. It may bring temporary success, but at a distance it is unlikely to justify itself.
Instead of reacting to emotions and listening to hot advice, investors should stick to their plan. This plan should include prudent financial assets, prudent risk management, and a commitment to long-term investments. For many crises, learning to follow the right principles and listen to the noise in the market has been key.
We remind you that investing in cryptocurrencies involves risks, and each investor must make their own decisions based on their knowledge and financial goals. Plan and discipline can be your allies on this gentle path.