Original title: When to "Lock In" and When to "Touch Grass"
Original author: Route 2 FI
Original source: https://substack.com/
Compiled by: Mars Finance, Daisy
Hi friends!
Let me start with an analogy:
The crypto market is like that 9.5 girl who is always playing mind games.
One day, she showers you with love and attention, making you feel special.
And the next day, she gives you the cold shoulder, causing you to question every decision you've ever made—or worse, your own worth.
Sound familiar?
That’s the reality of crypto investing… but let me tell you one thing: knowing when to go all in on “her” and when to take a break is the secret to not only surviving, but thriving in this financial wilderness.
So, friends, let’s dive into how to balance your crypto obsession with real life.
"Part One: Lockdown"
OK, let’s be clear up front — I’m not here to teach you to hold crypto 24/7 like some kind of digital hermit. That’s a one-way ticket to a tired city where the only inhabitant will be… you.
But sometimes you need to put your feet up, lock those doors, and ride the crypto wave like your portfolio depends on it (because, let’s be honest, it kind of does).
“This journey”
Remember March 2020? Yeah, it was a really interesting time.
The world is heading towards destruction, and Bitcoin has decided to take the express train to the bottom.
But here’s the point – those who kept their cool and bought the dip are the ones now lazing around on their private island sipping margaritas.
Major economic shifts create chaotic situations that cryptocurrencies thrive in. It’s like the market is playing musical chairs, and you need to be ready to grab a seat quickly when the music stops.
Take the Fed’s rate hikes, for example. Every time Jerome Powell opens his mouth, you can bet there will be some exciting moves.
So how do you play this game? It's simple:
Stay informed: Set reminders to follow key crypto figures and anime avatar accounts with less than 1,000 followers. For the love of Satoshi, don’t just read headlines. Dig into those whitepapers, lurk in Discord/TG channels, and even attend a crypto meetup or two (honestly, meetups aren’t necessary, but I still enjoy them). Knowledge is power, and in crypto, it’s also money.
Get your dry powder ready: Keep some stablecoins on hand. When everyone is panicking, that’s your signal to buy. But don’t blindly throw money at every dip, be strategic. Look for quality projects that are oversold due to market panic.
Know your level: set clear entry and exit points. Emotions are for writing love letters, not making trading decisions (can someone turn that into a classic quote?). Of course, you can use technical analysis, but don't be a slave to it. Remember, in the crypto space, fundamentals can sometimes be obscured by pure market psychology.
And remember, volatility is a double-edged sword. It can make you rich, but it can also bankrupt you in a split second, like a Lamborghini Huracán V10 5.2-liter exotic engine that goes from 0-100 km/h.
Understand the underlying trends.
Are we in a macro bull or bear trend? What is the overall market sentiment like? Is this a short-term correction or the beginning of a long decline?
These are the questions you need to ask yourself before you decide to “lock in.”
'The next big thing'
Think back to 2017.
Initial coin offerings (ICOs) are hot.
Fast forward to 2021.
Everyone is talking about NFTs.
Now what?
It’s all about those meme coins.
Crypto markets love trends. It’s like fashion week, but instead of overpriced clothes, we have Ethereum killers with no actual product, expensive monkey JPEGs, and new meme coins launched every minute (think pump.fun).
But here’s the thing – if you can spot these trends ahead of time, you can be hugely successful.
It’s not just about making a quick profit (although let’s be honest, we’d all love that). It’s more about understanding where the technology is headed and positioning yourself accordingly.
So how do you stay ahead of the curve? Here are my top tips:
Surround yourself with experts: Join Telegram groups, Discord, crypto Twitter niche accounts (comments), and some obscure subreddits. These are often where the real opportunities are. Don't just lurk - actively participate, ask questions, and share your insights. Crypto communities are usually very welcoming if you approach with genuine curiosity.
Follow the smart money: Pay attention to what VCs and big traders are investing. They are not always right, but they have resources we can only dream of. We have tools like Nansen or Dune Analytics that give us insights into what big traders are trading. But remember, just because a big player is investing, doesn’t mean you should blindly follow. They lose money, too.
3. Find real-world use cases: The projects that survive in the long term are those that solve real problems. Think about how blockchain can disrupt industries beyond finance — supply chain, gaming, social media. That’s where the real revolution is happening.
4. Experiment (responsibly): Don’t just read about new trends — try them yourself. Mint a new standard NFT, provide liquidity on some Layer4-zkVM-like decentralized exchange, play Web3 games. But (and this is important) only use funds you can afford to lose.
Be aware that being an early adopter is a risky business. Behind every Bitcoin there are thousands of BitConnects.
"Do Your Own Work" (DYOR) is more than just a joke, it's your lifeline.
But it’s okay to miss out on some trends. The fear of missing out (FOMO) is real, but the potential for loss is just as real.
3 “Regulatory dynamics”
Ah, regulation.
Monsters in the crypto world.
Sometimes we are immersed in the beautiful dream of decentralization, and the next moment, the U.S. Securities and Exchange Commission (SEC) is knocking on Binance’s door.
But here’s a bold take — regulation isn’t always the enemy. In fact, a degree of regulation might be exactly what cryptocurrencies need to go mainstream.
Look at the Bitcoin ETF approval. That news sent Bitcoin soaring. On the other hand, China’s decision to “ban crypto” in 2021 coincided with the market highs.
So how do you get in on the regulatory game?
1. Stay on top of the news: Follow key regulators on social media.
Bored? Yes.
Is it necessary? Of course.
But please don’t get your regulatory news from Reddit memes.
That being said, don’t expect to be able to trade these news releases with pinpoint accuracy.
Understand the impact: Not all regulations are created equal. Learn to distinguish panic selling (FUD) from facts. A crackdown on suspicious exchanges does not equate to a blanket ban on cryptocurrencies. Develop a nuanced understanding of how different types of regulations affect various areas of the crypto market.
Adjust your positioning accordingly: If you know a regulatory storm is coming, it may be time to prepare (or buy more "compliance tokens"). Consider how regulation may affect different projects. For example, privacy coins may face more scrutiny than DeFi protocols targeting institutional investors.
Think globally: Cryptocurrencies do not exist in a regulatory vacuum. A ban in one country may mean opportunity in another. Pay attention to crypto-friendly jurisdictions and where they are positioned. The next crypto hub may emerge where you least expect it.
And don’t forget the political variable. One day Trump calls Bitcoin a scam, the next he’s almost a Bitcoin evangelist.
Welcome to the world of crypto, where the only constant is change.
The key is to stay nimble, stay informed, and perhaps have a bucket of popcorn ready for the next congressional hearing on cryptocurrency.
“Part 2: Being Practical”
Well, we talked about when you should “go all in.”
Now let’s talk about something equally important — knowing when to take a break. Because frankly, if what you mean by touching the ground is endlessly scrolling on TikTok, we need to talk.
"breathe"
We’ve all been there. The market is in free fall, your portfolio is looking redder than a sunburned tomato, and you’re convinced that if you just make one more trade you can turn things around.
Spoiler alert: you probably won’t.
A series of losses can get on your nerves. Suddenly, you’re overleveraging, investing in questionable projects out of fear of missing out, and before you know it, you’re considering selling a kidney to buy the dip (pro tip: don’t do this).
In these moments, taking a step back isn’t just a good thing to do, it’s necessary.
So, how do you break this cycle?
1. Set a strict loss limit: Decide how much you are willing to lose before you start trading. Stick to this limit like your portfolio depends on it (because it does). It's not just about money - it's about preserving your mental health. No amount of profit is worth sacrificing your sanity.
2. Identify emotional trading: If your decisions are based on fear or greed rather than strategy, it’s time to take a step back.
Are you checking prices every five minutes?
Yes, it's time to take a break.
3. Take a forced break: Sometimes, the best trade is no trade. Log out of your account and delete the app if you need to. The market will still be there tomorrow. Use this time to reconnect with the real world.
Remember the world with trees, sky, and people who didn't know what a "CumRocketExtrax1000MoonSonic" was?
4. Practice self-care: It may sound awkward, but exercise, meditate, read a non-crypto related book. I promise you, your thinking (and your trading decisions) will be clearer for it.
5. Reflection and Learning: Use this time to analyze your mistakes. Keep a trading journal. Be honest with yourself and think about what went wrong. Was it a poor strategy, or were you just "paper hands"? Learning from losses is the difference between successful traders and one-hit wonders.
Remember, crypto investing is a marathon, not a sprint. Taking a break is not a weakness — it’s a strategy.
The most successful traders I know are not the ones who are glued to their screens 24/7. They are the ones who know when to engage and when to walk away.
2. “Big Brothers”
Imagine this:
You’re scrolling through your feed and suddenly see Elon Musk tweeting about Dogecoin.
Your cousin who once thought Bitcoin was a vitamin supplement now gives you trading advice.
PepsiCo and Budweiser are busy collaborating.
If that isn’t a sign of peak fanaticism, I don’t know what is.
Mainstream adoption is a good thing for crypto, don’t get me wrong. But when your Uber driver starts giving you advice on leveraged yield farming, it might be time to step back and reevaluate. Markets have funny ways of humbled us, especially when everyone feels like a genius.
Here’s how to ride the craze:
1. Watch out for unlikely endorsements: When some celebrity who can’t even spell the word Ethereum starts recommending certain coins, proceed with caution. I love Kim Kardashian as much as the next person (just kidding, I don’t), but I don’t take financial advice from her Instagram stories, and neither should you.
2. Track Google search trends: If “how to buy Bitcoin” suddenly rises at the same time as “Taylor Swift,” we may be in bubble territory. Use tools like Google Trends to get a sense of public interest. When your non-crypto uncle who you haven’t seen for a decade suddenly calls you and asks you how to buy, that’s usually a sign that we’re close to a top.
3. Beware of the Fear of Missing Out (FOMO): If you are buying cryptocurrencies simply because you are afraid of missing out, it is time to get in touch with nature. FOMO is a powerful poison, but it is also a great way to buy at a high price and become an exit liquidity for those who read the first part of this article.
4. Look for signs of market weakness: Are projects that serve no real purpose or are even purely a joke also experiencing significant gains? Are people taking out loans to buy cryptocurrencies? These are red flags, my friends.
Don't be that person.
The party always ends.
3. “This is too much.”
Let's talk about the irrationality of the market.
It’s like that friend who always takes things too far – it’s fun at first, but you know it’s going to end in tears.
These crazy times in the cryptocurrency market can make you feel like you’ve taken some crazy medicine. But recognizing the nature of the madness can save your portfolio (and your sanity).
Signs you are in Crazy City:
Coins with misspelled names are suddenly worth more than top public companies.
People mortgage their homes to buy the above currencies.
Influencers advertise a new “revolutionary” project every other day.
Everyone is a genius (until they’re not).
The phrase “this time is different” is mentioned without any irony.
When the market no longer makes sense, it's time to step back and regain some perspective.
How to stay sane in a crazy market:
1. Stick to your strategy: Don’t abandon your game plan just because others seem to be getting rich quick. If you wouldn’t buy it in a bear market, think twice before buying it at the peak of the mania.
2. Do your own research: Don’t trust those YouTubers with shocked faces on their thumbnails. They’re probably just as clueless as the rest of you. Dig into the projects yourself. Read the documentation, check out the GitHub repositories, and listen to the developer conferences. Knowledge is your best defense against market craziness.
3. Remember the basic principle: If it sounds too good to be true, it probably is.
Yes, even in cryptocurrencies.
No, wait a minute — especially in cryptocurrency.
4. Zoom out: Look at longer-term charts. How does the current mania compare to previous cycles? History doesn’t repeat itself, but it often rhymes. Understanding market cycles can help you keep your cool when everyone else is losing their minds.
5. Let me emphasize this again: Have an exit strategy. Know when you will take profits before you enter a trade. It is easy to get greedy when everything is going well, but remember - unrealized gains are unrealized gains.
“Part 3: Balance”
Staying on top of the crypto markets doesn’t mean staying online 24/7 or being completely disconnected.
It’s about finding that sweet spot—knowing when to lock in gains and when to connect with nature. It’s a delicate dance, and believe me, we all step on our toes sometimes.
The key is self-awareness. Know your boundaries, both financial and psychological.
Cryptocurrency is a wild ride, but it doesn’t have to consume your entire life. It’s okay to be passionate about this space — it’s really hard not to be drawn in when you see the potential for innovation that can truly change the world.
But remember, you are more than just a trader or an investor.
You are a person first.
So go ahead and dive into those charts when you feel like it. Do your research and invest in that promising new project. But don’t forget to keep your head up, get in touch with nature, and remember that there’s a bigger world out there beyond your portfolio.
So, blessings to all the holders and traders, developers and dreamers:
May your packages be filled with gains, not losses.
May you always remember that, in the end, it’s not the money that matters – it’s being part of this revolution.
Stay smart, stay sane, and never stop learning.
The future is bright, and its shape is blockchain.
Goodbye, friend, and see you at the moon—or at least at the next high point.
