Ways for Overcoming Crypto Trading Fear

Published in

The Capital

4 min readJul 13, 2022

Cryptocurrency is a new type of digital asset that is rapidly gaining popularity. Because it is new and unknown, many people are hesitant to invest in it. People are afraid of investing in cryptocurrency for a variety of reasons.

To begin with, there is a misunderstanding of the new hot digital asset, which is only a little more than a decade old. Cryptocurrency is still a buzzword used by a number of financial institutions that do not educate their customers on its meaning and applications.

Second, cryptocurrency is extremely volatile. It is, in fact, one of the world’s most volatile investments. However, it is so volatile because it trades 24 hours a day, seven days a week, faster than any other market. It might actually take a year for a stock market to do the kind of trading crypto does in a month. The price fluctuations in crypto are also often steep and rapid.

Here are some suggestions for fully reaping the benefits of joining the cryptocurrency bandwagon:

Educate Yourself

You must be familiar with the market and its fluctuations. Crypto is a volatile currency, but there are ways to capitalize on this volatility. According to research, once people truly understand the technology behind cryptocurrency trading, they can make the right decision 90–95 percent of the time. Cryptocurrency is more than just digital currency; it is an asset class with characteristics (economic and risk-reward profiles) similar to other traditional investments. New investors typically panic sell their crypto when they see prices falling, only to see those prices skyrocket shortly thereafter.

Don’t Let FOMO Push You to Invest

FOMO, or Fear of Missing Out, is one of the leading causes of investment apprehension. They occasionally invest because everyone else is doing so and seeing a great return on investment. They may board this train without knowing what they hope to gain from the investment. Before investing, everyone should ask themselves certain questions. What can I afford to lose? How long can I put money aside? Is it worth the risk of losing everything? It is not a good strategy to stress buy and stress sell your coins just because everyone else is doing it. Your strategy should be determined by a number of factors, including your future cash requirements, current financial strength, and how long you intend to stay in the market.

Understand All Your Options

When you hear the term “cryptocurrencies,” the first thing that probably comes to mind is Bitcoin. But did you know there are over 20,000 different types of cryptocurrencies? Some of the most popular are Ethereum, Cardano and Litecoin. However, there is a whole Pandora’s box that must be opened before investing blindly in just one type of cryptocurrency. The key here is extensive research. Before jumping on the “investing” bandwagon, figure out what kind of cryptocurrency you want to invest in.

Set Trading Hours

Sure, the exchanges are open 24 hours a day, seven days a week, but that doesn’t mean you have to be. “I treat it like a business,” says Melker, who only trades from 9 a.m. to noon. and 5 p.m., after which he has dinner, puts his children to bed and goes about his normal life.

Tame the Greed, Manage the Fear

According to Zhou, the biggest issues in trading are arrogance, fear, and greed. Maintain emotional neutrality. Concentrate on the methodology, the trade framework, and the cold logic of the percentages. “You shouldn’t feel too good about your wins, and you shouldn’t feel too bad about your losses,” Zhou says. But what about some real talk? It’s much easier said than done. How do you deal with your losses? (Because there will be setbacks).

Treat Losses As An Opportunity to Learn

Reframe your loss. Don’t let it become a source of rage, despair, or self-flagellation. Allow it to serve as a catalyst for learning. “Just assess the situation,” Zhou says. “The first question is whether you took that loss because you had a positive edge — more than 50% — and then got unlucky?” And don’t lie to yourself.” If you were simply unlucky, then accept it as a part of life and focus on the long term.

In Summary

Trading cryptocurrency can be taxing on the nervous system. Have you truly beaten the system if you spend your days staring at cryptocurrency charts and never doing anything else? Have you truly triumphed in the game? “You’re doing it wrong if your money isn’t buying you more time.”