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As a cryptocurrency or NFT trader, it’s important to be aware of the potential impact that the volatile markets can have on your mental health. It is now a common practice for Web3 traders to hop into crypto and/or NFT trading after some training without understanding the basic emotions that could conflict with pursuing reliably beneficial choices. No big surprise why most investors lose their capital in like one year of trading.
Cryptocurrency and NFT trading is a 24-hour opportunity. The market is open 24 hours every day, serving you with unending opportunities to make money. It is attractive to make money but draining to your health.
[READ ALSO: Risks in Cryptocurrency]
It is also a volatile market. Meaning that a single digital token could rise by more than 100% within some hours and drop again. The price rise could be triggered by sentiment changes arising from celebrity endorsements or social media comments.
And as a crypto or NFT trader, you have to be sentimental. The future worth of a crypto coin or an NFT is reliant on whether investors have hope for the coin or token. Sometimes, they also move according to influencers’ comments and activities on social media.
Cases have arisen where cryptocurrency traders really believed in a crypto coin and it ditched below their investment. They lost tons of money. This also applies to a Non-Fungible Token which, maybe, was so overhyped that investors bought into the NFT project, but in a few hours, it fails to increase in value or even decrease the more.
These losses can cause investors to have a mental breakdown, I mean, who wants to lose their hard-earned money?
Another reason Web3 traders can suffer from mental breakdown is not participating in a project that succeeds unexpectedly. A good example is the recent NFT project, Okay Bears, which had over a 2000% increase in just an interval of 48 hours. Many NFT traders who didn’t participate in the project were depressed because they didn’t end up earning from the win.
Tips on How To Secure Your Mental Health as a Crypto or NFT Trader
Cryptocurrency and NFTs are industries fueled by FOMO, FUD, luck, and deep emotions, which can be taxing. And that is why it is important for cryptocurrency and NFT traders to know how to secure their mental health.
Here are some tips to help you stay healthy and mentally strong:
1. Avoid overtrading to maintain good mental health
Trading too often can lead to anxiety and stress. If you find yourself getting caught up in the markets, set a limit on how frequently you trade, and try to stick to it. Numerous things happen in the digital currency market, and you want a bunch of decisive practices that will direct you. You have to set up a trading guideline to control your trading hours. Your guidelines should cover the type of trading you want to trade and the time you need to do this trading.
These principles could also incorporate the greatest successes or failures you may have to endure in the process. Besides that, you should have a sensible stop loss and take profit, a gamble-to-remunerate proportion that you are okay with, and an appropriate entry and leave procedure. You should also know the basic variables to keep an eye out for in cryptocurrency and NFT trading.
2. Practice mindfulness to Secure Your Mental Health as a Crypto or NFT Trader
Taking time each day to quiet your mind and focus on your breathing can help you stay centred and avoid becoming overly emotional in response to market fluctuations. Continuously remind yourself that the market isn’t steady. You will have great days and awful days — the two of them will come and pass. Likewise, remember that you won’t make a fortune rapidly; building an unshakable portfolio takes time and exertion.
3. Seek support from friends and family
Having a strong support network is crucial for maintaining good mental health. Lean on your loved ones for help and guidance when needed. Get some human touch. Go out with your loved ones, and invest energy with them. This will cause you to feel calm in the midst of crypto unpredictability.
4. Take breaks
Spending all day glued to your computer screen can be mentally draining. Make sure to take breaks throughout the day, and try to get outside for some fresh air whenever possible.
5. Seek professional help
If you are struggling with more serious mental health issues related to your trading, don’t be afraid to seek professional help. There are many resources available, such as therapy and support groups, that can help you manage your symptoms and get back on track. By taking care of yourself mentally, you can continue to succeed in the exciting world of cryptocurrencies and NFTs.
Conclusion on How To Secure Your Mental Health as a Crypto or NFT Trader
Whether you’re an experienced trader or not, a project founder, an artist, or a novice, you have likely felt the stress at some point in your crypto or NFT experience. Mental breakdown is inevitable in the Web3 world, but traders need to understand how to control them. Remember, only the living beings can trade!