What Does It Take To Stay Mentally Healthy During Crypto Bear Markets?

mentally healthy during crypto bear markets

It takes a strong mind to trade digital currencies and even a stronger one during bear markets. This article provides some crucial information on ensuring your best mental state during challenging periods when you’re more likely to lose money than to make a revenue. 

The unfavorable conditions of the present crypto market have made it a matter of concern for most investors (beginners and seasoned), and many consider the option of giving up trading digital currencies. The general fear that dominates the sector and the psychological effects of losing money affect traders’ mental health in various ways. And, understandably, people felt low when Bitcoin price dropped from its all times high to its present value. 

Let’s find out more about the crypto winter, its effects on investors’ mental health, and the ways in which they can stay mentally healthy. 

What is a bear market?

A bear market is a period marked by falling prices for all assets. During this time, the market sentiment is negative for extended durations, and fear and panic replace the optimism that usually surrounds the sector. 

We’ll get back to Bitcoin, as we mentioned earlier. Its price started to drop from its all-time high in October 2021, and its value decreased by over 70% by November 2022. The global cryptocurrency market also dropped from $2.9 trillion to around $800 million at present. 

However, seasoned investors know that this isn’t the first time the market has gone through a bear phase; other significant ones happened in 2014, 2015, and 2018. 

How do bear markets affect investors’ mental health?

If you’ve added digital currencies to your investment portfolio before the bear market, now you’re probably dealing with some deep losses. You cannot feel comfortable losing money, especially if you plan to use it for other purposes in the long run. The continuous price drop has triggered a general sentiment of fear in the market, and you’re no exception to it. You might invest more time in studying the market before placing a trade, and you always consult the charts for opportunities because you’re looking for ways to make up for the lost funds. 

Mental health specialists state that people tend to develop compulsive trading behaviours when dealing with losses because they panic and leave their emotions to control their actions. Most investors forget that not all trading counts, and sometimes it’s best to wait and research the market to ensure you understand your strategies. Don’t get too attached to the charts because digital trading currencies without relying on a plan can turn into an addiction that engages your emotions solely. 

The longer you spend in the face of your screen trying to figure out where the market is heading, the more prone you are to anxiety, fatigue, and stress. Additionally, making little profit or continuing to lose trades that only make you lose more money could trigger depressing thoughts, which could impact your overall mental health and productivity. 

Ways to maintain your mental health during the bear markets

If you’re trading cryptocurrencies as a side hustle or a full-time job, you’re most likely used to reading candlesticks and charts daily. Some would say that you even obsess about the market and sometimes have the impression the candlesticks grow in your favour. But trading in a bear market comes with several challenges, and it’s crucial to prioritise your mental health. 

1. Establish trading hours

We understand it, you’re passionate about it, or you’re trying to make up for the lost money, but you cannot stare at charts all day long because you’re not a robot, and you’ll get exhausted. Treat crypto trading as you’ll do with any other job or business, and set a schedule for when you engage in the process. Suppose 9 to 5 works well for you; pick this time schedule and stick to it no matter how good or bad your trading days are. Regardless of what’s happening in the sector, don’t alter your trading hours. Ignoring this disciplinary trading method is easy, but it will impact your mental health in the long run. And discipline is what sets the line between professional and amateur investors. 

2. Stick to a plan

We must emphasise more how important mental discipline is when trading digital assets. Do your homework when you come upon an interesting project and try to figure out if it fits your goals. Take notes to establish what the risk/reward profile is and how much you can risk losing. 

Don’t just stare at the charts hoping they will go up or down, but plan your trades in advance and create entry and exit points. Don’t place your trades in the hands of the crypto trading Gods, but stick to your plans from start to end. 

3. Manage your fear and greed

Professional traders think greed, fear, and hubris are the biggest enemies when investing in cryptocurrencies, especially in a bear market. It’s vital to keep the emotions neutral and switch the focus to the framework of the process, methodology, and cold logic. Don’t let your wins make you feel too good, and your losses feel too bad. Yes, it’s easier said than done, but this is the best way to prevent this hustle from affecting your mental health. 

4. Take a break from the sector

It’s best to take a break from the market when you feel like you’re losing control over your thoughts and behaviours. It’s normal for unfavourable market conditions to have a negative impact on your emotions, but ensure they don’t take control over your entire well-being. Take a step back and engage in activities that clear your mind. 

This is the ideal opportunity to improve your skills, concentrate on other activities or spend more time with your family and friends. During this break, turn off all notifications from the apps and magazines that keep you updated with the state of the market. 

How long will the bear market last?

The average bear market lasts around two years, so strengthen your mental health because you’re here for the long run. 

— Share —

— About the Author —

Leave a Reply

— Follow Us —

Up Next

Navigating College Life: Tips for Freshmen

Navigating College Life: Tips for Freshmen

Starting college is a significant milestone in any student’s life. It’s a time filled with excitement, opportunities, and new challenges. For freshmen, the transition from high school to college can be daunting, as it involves adapting to a new environment, meeting new people, and managing a more rigorous academic schedule. Understanding how to navigate this new phase effectively can make a substantial difference in your college experience. This guide aims to provide practical tips and insights to help you get off to a great start. From preparing for your first semester to building a social network and developing effective study habits, these tips will equip you with the tools you need to thrive in your new academic journey.

Getting Started: Essential Preparations for Your First Semester

Up Next

What Can You Do With A Psychology Certification?

What Can You Do With A Psychology Certification

Psychology is one of the most rewarding careers to enter, and you’ll be able to feel that throughout your time studying, too. This subject can be an excellent starting point for a lot of careers, or you could use it as a secondary qualification to improve your performance in your primary career! So, no matter whether you’re getting ready for your undergraduate degree, master’s, or are working towards your psychology graduate certificate, let’s take a look at what you can do with your psychology qualifications. 

Jobs that directly use a psychology degree

When choosing what to study, you might begin thinking about jobs that directly use your degree as much as possible. The good

Up Next

What Month Is Depression Highest?

What Month Is Depression Highest

Studies show that as daylight decreases, beginning in the fall, and throughout winter, people experience higher emotions of depression and anxiety. 

The studies show that depression peaks in January. 

While December falls within the winter months, which are the most miserable months of the year, studies show that people suffering with depression are least depressed during this time. This is because of the holiday-induced euphoria. 

On a daily level, Thanksgiving, Christmas Eve, Christmas Day, and New Year’s Day are all among the year’s least miserable days.

As the days become longer and the temperatures rise in Spring, you would expect people to become happier and less sad. 

Unfort

Up Next

Why Mental Health & Self Care Matter More Than Ever In A High Stress Society

Why Mental Health & Self Care Matter More Than Ever In A High Stress Society

Did you know that nearly 40% of adults surveyed in more than 100 countries across the world in a 2022 study said that they experienced anxiety and stress? 

Nearly 50% of adults in America report that they feel stressed, and if you unpack this figure into its separate components, it’s Gen Z that is the most stressed, while senior citizens report the lowest incidence. 

Statistics and numbers can give you the big picture of how stress has become the new lifestyle disease worldwide, but they don’t tell the whole story. We need to dig deeper to understand how personal anxiety and stress can affect society in general. More importantly, once we have become aware of the problem, we have to tackle it on a war footing. 

Up Next

From Stress to Tranquillity: Using Essay Composing Providers to Alleviate Emotional Problems

From Stress to Tranquillity: Using Essay Composing Providers to Alleviate Emotional Problems

In the modern-day world, where stress and mental problems prevail, discovering efficient coping systems is essential for keeping emotional wellness. Composing has really long been acknowledged as a recovery tool for processing sensations and promoting psychological health.

Over the last few years, essay composing services have really become an important resource for people trying to find support with composing tasks, offering expert assistance with scholastic, specialist, and personal composing requirements. In this post, we will have a look at the intersection of mental wellness and essay writing service, taking a look at how contracting out composing tasks can relieve psychological issues and promote total well-being.

Up Next

Comprehensive Guide to Online Blackmail Help

Guide to Online Blackmail Help

In today’s digital age, online blackmail has become an increasingly common and distressing problem. Understanding how to seek online blackmail help is crucial for protecting yourself and resolving such situations effectively. This guide will provide you with essential information, practical tips, and real-life examples to help you navigate the challenging landscape of online blackmail.

What is Online Blackmail?

Online blackmail, also known as cyber extortion, involves someone threatening to reveal sensitive, embarrassing, or incriminating information about you unless you comply with their demands, which often include money, further compromising actions, or other person

Up Next

5 Benefits of Learning to Delegate in the Workplace

Benefits of Learning to Delegate in the Workplace

Are you among the few people who’ve found the perfect work-life balance? According to the American Institute of Stress, around eight in 10 U.S. workers deal with work-related stress. A quarter of these employees say their job is the main stressor in their lives. Meanwhile, 76% of U.S. employees say workplace stress negatively impacts their personal relationships. Do you see yourself in any of these statistics? If so, you’re not alone.

A life with zero stress is impossible, but that doesn’t mean it should take over your life. You must learn coping mechanisms so stress doesn’t become an albatross. One way to deal with stress is to delegate. 

Here are five re