Emotional Stages of Trading Cryptocurrency
Trading cryptocurrency feels like a roller coaster journey. There are ups and downs and you can never prepare yourself enough for it!
Due to the speculative nature of cryptocurrency or any stock for that matter, the market fluctuates rapidly. You’d find yourself constantly faced with difficult choices — to buy more or to sell now? Situations like these are not easy to handle. The stakes are high and you have to understand and take control of your emotions before you can make the most rational decision.
Based on the diagram above, I will share what I have experienced in my journey thus far.
The Start (August 2017)
My journey started last August when the total market capitalization of all the cryptocurrencies was only ~USD150 Billion and each BTC was worth about ~USD4,000.
Labelled as the next megatrend of the financial industry, BTC was one of the hottest topic that everyone was buzzing about. Then, I got on the bandwagon and started on my journey in the hopes of having financial freedom.
Hope (September 2017)
At this point, BTC was picking up momentum and was doing really well. I began to invest more and my portfolio reflected positively. However, in September, the market capitalization dipped to a low of USD 100 Billion.
Mind you, this was a -33% fall from the point I entered and it was the first dip that I encountered. However, this dip did not hit my bottomline and I was optimistic that BTC will rise.
Belief (Oct — Dec 2017)
After the recovery, BTC was doing favorable that the market capitalization jumped upwards constantly. To feed the belief, there were many positive signs such as major news outlets like ChannelNewsAsia were reporting on BTC on a daily basis.
The cryptocurrency community was also growing stronger with the Telegram and Reddit groups growing rapidly. With these positive uptrends, I invested nearly 80% of my savings into it.
Euphoria (18 December 2017)
Now with almost all my fortune, BTC hit an all time high (ATH) on 18 December 2018 — USD19,300 for 1 BTC.
I was in disbelief. Shocked.
I had nearly gained 300% in capital growth (after dollar cost averaging). I was so elated that I check my portfolio every hour and I began fantasizing about getting my dream car.
Complacency (January 2018)
After the New Year, BTC started dipping a little in January. However, I still stuck on to my mindset of “If BTC can hit US19,000, it definitely can climb back up”. With this mindset, I did not liquidate any of my assets and did not even consider to.
Anxiety (Feb 2018)
Anxiety and panic set in. BTC was free falling to ~USD7,000 and I began to get worried. Back then, market recoveries were really prompt and BTC always seemed to bounce back stronger.
It was this moment when I realized that I should have an “Exit Strategy”. My parents always said,
“Know your limit and when to stop.”
I then devised my own exit strategy where I will liquidate a certain percentage of my assets if it hits my desired target.
Now (June 2018)
Fast forward to the present, I have learnt many valuable lessons that I believe will bring me closer to financial freedom.
Everybody have different goals and beliefs when they enter the crypto market. My personal advice to you is that, you have to know what is your bottom line and have a strategy of when to cash out.
This roller coaster ride taught me plentiful about the finance markets than what I learnt anywhere. This first-hand experience made me realize that experience is a huge factor to make good trades.
Researching more on Initial Token Projects (ITOs) to invest in, I came across an interesting project, Spiking. Spiking is an ITO that aims to get the power of 1,000 whales into your wallet. How they work towards that is through their mobile application that allows you to duplicate trades made by large and successful Whales.
Personally, I feel that this reduces the Fear, Uncertainty & Doubt (FUD) of beginner investors because it took me 3 weeks of research before getting my hands into cryptocurrency. With Spiking, I could easily start investing and be assured that my money is in good hands.
by Rukaiya Shakir, NTU Year 3 Business Student
Twitter: https://twitter.com/rukaiya_shakir/status/1014819383745568768?s=19
Drawing from its successful and rich experience in the stock market since 2016, Spiking is expanding to cryptocurrency trading! With its unique and powerful trading tool and its AI robot Robobull, Spiking enables traders to easily find whales and mirror the trades automatically. At Spiking, we strive to help traders make better decisions and take the steps toward fulfilling their dreams of achieving financial freedom. Check out Spiking App, Top Grossing Finance App at App Store & Google Play.
Keep in touch with us.
- View the Spiking White Paper https://spiking.io
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- Bitcointalk ANN Thread:https://bitcointalk.org/index.php?topic=3629292.0
