Cryptocurrencies are a rollercoaster of emotions. One day you feel like Warren Buffett on steroids, and the next you wonder if it wouldn't have been better to invest in... planting potatoes. That's why cryptocurrency cycles are a topic worth discussing before the pharmacy sells off stress pills.
Euphoria Phase: "The Lambo is waiting!"
When the market is going up, you feel like a genius. “I predicted all this!” you repeat to yourself, looking at the green candles on the chart. But be careful, this is when you can easily fall into the trap of greed. Instead of taking profits, you start dreaming about a new Lamborghini, forgetting that the cryptocurrency market can be unforgiving.
Before you place an order for your dream car, ask yourself – am I buying at a high price now?
Panic Phase: “Sell everything while I still can!”
It starts with a small drop. You think, "This is just a correction, it'll bounce back soon." But when the price falls faster than your vacation plans, panic becomes inevitable. Then the eternal question arises: "Is this the end?"
Don't let your emotions take over. The market loves people like you – panicked investors who sell at the worst possible moment.
Depression Phase: “Why didn’t I listen to my mom?”
Once you sell at the bottom, the price starts to bounce. You watch the charts in disbelief and blame yourself for not withstanding the pressure. The thought comes to mind: "I could have held!" But hey, everyone learns from mistakes - even if they cost a few thousand dollars.
This is a good time to take a step back, analyze your decisions, and create a plan for the future.
How to get through the cycles without losing your health (and money)?
Plan ahead. Determine when you will take profits and what your strategies are during downturns. This way emotions will not rule you.
Don't believe everything you see on Twitter. Social media is a treasure trove of drama that can effectively distort your perspective.
Be patient. Remember that the market moves in cycles. After every storm comes a calm – and after every boom a correction.
Cryptocurrencies aren’t just technology – they’re a school of life. They teach patience, humility, and that sometimes it’s best to just… do nothing. And emotions? Well, they’re part of the game. Learn to live with them, and you might come out a wiser (and richer) investor.
If you like my texts, leave a thumbs up and share them with your friends. I will also be happy if you leave a comment. Best regards and I invite you to read my other articles on $BTC , $ETH , $DOGE and other cryptocurrencies, which are of course not investment advice.
