Is a drop in crypto a reason to panic? On the contrary, it is a test of your true goal.

The decline in the value of the cryptocurrency portfolio is not a reason to panic, but a natural element of investing in the most volatile assets in the world.

The key to survival is changing your perspective: instead of viewing fluctuations as losses, you should treat them as "tax on future profits."

The biggest mistake is mentally "materializing" unrealized gains and converting them into consumer goods.

’I could have bought a vacation for that.’

’For what it dropped, I could have bought a car.’

Etc.

Do you know this?

To effectively manage emotions, you need to stop thinking of your invested funds as cash.

Instead, treat them like your 'employees' or 'soldiers' who are working towards a long-term, clearly defined goal – a goal more important than temporary pleasures.

Why does your brain suggest the worst scenarios?

During every sharp drop, called a flash crash, a defense mechanism activates in our minds.

We start thinking about what 'we could have had' if we had sold at the top – 'nice vacation', 'good car'.

It’s a psychological trap that leads to panic selling and realizing losses.

This happens because we don’t have a clearly defined goal that our money is fighting for.

Without this 'mission', every correction is perceived as a failure.

How to turn 'lost car' into 'soldiers on the front'?

The most effective mental strategy is to stop perceiving investments as money. Hard, but wait.

Imagine that every złoty is your employee who has a task to complete.

Your job as a manager is not to fire them at the first stumble.

Your task is to believe in the long-term mission.

This mission could be financial security for your family, buying an apartment, or early retirement.

When you weigh family security against a new car, the choice becomes simple, and the pain from the drop decreases.

Accept the nature of the market – stop fighting windmills.

Investing in cryptocurrencies is like consciously owning a very energetic dog. You can’t expect it to be calm.

Volatility is written into the DNA of this market.

Wondering about drops is illogical. Instead of fighting them, accept them. Understand that without these sharp downward movements, there wouldn’t be equally sharp upward movements.

These are two sides of the same coin.

Summary (Frequently Asked Questions - FAQ):

Question: What to do when my portfolio is sharply dropping?

Answer: Go back to your original investment plan and goal. Ask yourself whether the fundamentals of your investment have changed. If not, the best move is often no move.

Question: How to stop thinking about how much I 'lost'?

Answer: Change your definition of money in the market – it’s not cash, it’s a tool to achieve a goal. Focus on the goal, not on the temporary value of the tool.


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