In today’s Crypto Knight column, we examine how cryptocurrency trading may harm your mental health and how you can get help before it’s too late.
“Why should I visit a therapist if I don’t have a problem?” questioned Akshay Gollelu, a 24-year-old cryptocurrency trader who “lost everything” while dealing in crypto-assets.
According to indianexpress.com, he “doesn’t sleep at times and constantly glancing at the trading chart” in order to make a rapid profit. Gollellu, on the other hand, claims that crypto addiction “is a common thing within the community” and refuses to consult a therapist because he feels “it does not need treatment.”
Several crypto traders, like Gollelu, are hooked to trading, which is affecting their mental health. If you have a buddy who is “into crypto” but does not want to “HODL” (slang for storing crypto assets), you should keep an eye on them.
What is it about cryptocurrencies that makes it so appealing?
Unlike the stock market, the cryptocurrency market is open 24 hours a day, seven days a week. Users may trade internationally, fueled by volatility and uncertainty, producing a great source of a dopamine surge, making the crypto market even more addicting.
Cryptocurrency access is now simpler than ever. All you need to start trading cryptocurrency is a bank account, a crypto wallet to hold your crypto assets, and a mobile device to access and manage your crypto.
Another key element that contributes to cryptocurrency addiction is the belief that it is a fast method to generate huge earnings. Without a doubt, some individuals have made it big in crypto, but not everyone.
The widespread assumption in the crypto community is that ‘timing is everything,’ and as crypto becomes more mainstream, traders are under the impression that a trick or a technical analysis would allow them to win the jackpot at the perfect moment. This is what drives traders to take bigger risks and trade the market more often.
Notably, bitcoin traders do not earn on every single deal, and they also do not lose on every single trade. However, they aspire to earn a profit despite a streak of losses, which motivates them to trade again.
Finally, a prevalent trait of cryptocurrency traders is worrying about losses while being dispassionate in the face of gains. This motivates individuals to devote more and more time and money in order to recoup their losses.
Are you a drug addict?
Crypto addiction exists, but how can you know if you are hooked to cryptocurrency trading?
“When it comes to the crypto world, it’s been observed that a lot of young people are choosing to invest in this rather than stocks and mutual funds because it’s (as they describe it) ‘easy to understand and follow,” Nida Shaikh, a Pune-based clinical psychologist, told indianexpress.com while sharing red flags that everyone should be aware of.
Shaikh argues that the volatility in the cryptocurrency industry provides the distracted mind something to be excited about, and so effectively substitutes social media browsing or video games since it promises ‘growth of investment.’
However, most traders are unconcerned with the dangers involved and are instead focused on the process’s instant satisfaction.
“Opening the trading app and monitoring current selling prices of the purchased cryptocurrency on a regular basis is a significant red flag,” she added.
Other major red signs to be aware of include:
- Desperation to spend more in the expectation of obtaining more
- Feeling restless when relatives or friends prohibit you from checking the cryptocurrency app on a regular basis
- Attempting to recoup lost funds by buying in another cryptocurrency that may be ‘trending.’
- Asking people to invest on your behalf when you are short on funds
Methods for Overcoming Crypto Addiction
Before investing in digital assets, every crypto trader should concentrate on mastering strong crypto fundamentals.
One useful thing to ask yourself is how many cryptocurrency wallets you have. And how much cryptocurrency is held in it? Consider how it would influence your life if your wallet was entirely erased.
If you just have one wallet and your assets are housed in it, it is a smart idea to establish numerous wallets and distribute your crypto between these wallets. So, the next time you spend your savings, and in the event that you lose cash, you will at least have backup funds ready.
What folks dealing with crypto addiction must realize is that no matter what they do, they will miss pumps, and there will always be a better coin or an NFT collection accessible on the market. Projects are thriving everywhere, there is plenty of time to record profits, and there is no need to hurry.
Second, make an effort to learn from your errors. Don’t repeat the same mistake over and over again. Don’t keep investing in coins that promise quick gains; instead, seek for long-term assets rather than short-term coins.
Most essential, be concerned about the pleasure of others. If you find a project that is now trending, there are hundreds of thousands of individuals feeling the same type of joy; be pleased for them; it will undoubtedly brighten your day.
Create a plan that matches your lifestyle and personality. When using a cryptocurrency exchange or platform, keep track of the time. Don’t maintain a minute-by-minute eye on the charts. Play it wisely, set up a set notice for particular price points, or even a stop loss if you are on an exchange that allows you to programmed it automatically. This creates a consistent routine and addresses addiction.
If you are just getting started in the crypto industry, you should avoid depending on crypto for a full-time income. Have a supplementary source of income and invest a portion of your profits.
Crypto traders, according to Shaikh, should avoid having the trading app on their phones. It will prohibit them from monitoring the currency statuses on a regular basis. “Log in to your account using a PC or laptop and choose ‘do not store password.’ “The objective is to make the login procedure longer and more laborious in order to minimize logging in multiple times,” she said.
Get some human contact. Spend time with your friends and family by going out with them. This will keep you calm in the thick of the bitcoin volatility storm. “Set a monthly limit for the amount you wish to invest in cryptocurrency and stick to it, no matter how appealing the rise seems.” “Educate yourself on the influence that global concerns have on the crypto market by spending no more than 15 minutes each day reading economic news,” she said.
Remember, if you want assistance, please get it from a professional. It’s not a sin to do so.
READ ALSO: What Is Tether (USDT)?
Finally,
The combination of crypto volatility and the incapacitating effects of the Covid-19 outbreak may have a negative impact on mental health.
The good news is that a growing number of people and platforms are treating mental health seriously. Blockchain technology allows communities to form support groups in order to de-stigmatize discussing mental health concerns and provide new solutions for individuals who suffer from them to manage.