The best way to handle your emotions in this crypto space

[Barikui1]

The sentiment of CZ has said it all.
Most Investors or traders don't know that investing a money you can't afford to do away with or money they can't afford to lose is the exact thing that makes you panic either as an investor or a trader, because as humans that we are, at some point we will always display emotions even though we really believes in Bitcoin, because their is a dip just as this current dip that might shake your confidence, which might warrant you to sell in panic, though newbies investors mostly are the ones that normally does that but even as a veteran in the the crypto space, if you invest or trade with what you can't afford to do away with or what you can't afford to lose, your emotions may get the better of you when the volatility of the market is in full display as this present one, and CZ who has the largest crypto exchange (Binance) has practically said it all in a summary, which I 100% agree to, because all he said is true.
So let's try to invest only what we can afford, so as not to be easily shaken by volatility in the market.

[Zaguru12]

I am not a fan of his but definitely been following his tweets during this market correction, I can’t actually agree less with his sentiment on this market, although our only differences is he views Altcoins too as investment whereas I put only bitcoin in that position and treat other cryptocurrencies as just gamble regardless of there market cap or FDV.

If you read through the tweet you will most certainly understand why most of the old and long term investors here usually tells you to invest an amount you can afford to lose, although this is because of the volatility of bitcoin but never about the potential of bitcoin. Bitcoin will grow beyond any dip and do numbers you as an investor how do you survive this dips is what actually matters, right now those who might have invested amount that they cannot afford to lose would have panic and sale at Loss or even break even when we know they market will most definitely bounce off and pump again.

So if you have a large size and can’t afford to keep up maybe due to the funds you invested it is better to cut losses if it isn’t that bad but the best option is to hold for long

[Oluwa-btc]

Emotional management is essential for Bitcoin Investors and enthusiasts because the Crypto industry and market can be solely highly unpredictable and unregulatory most times.
Negative news,market and price fluctuations can create anxiety and and emotional imbalance in some people.However, handling emotions in the cryptospace can be very challenging but Bitcoin Investors can get through this challenge if they're willing to stay adaptable and practice confidence.

I'm very certain that it's not an easy role to play but acknowledging and implementing effective management skills can avoid irrelevant frustrations and regrets.

[nakamura12]

You may be right that there still some panic but in my opinion, it is a bit different since a person didn't invest all of their money because they invested what they can afford to lose so even if they did lose but they still have some money left that wasn't spend to buy coins. After all, the amount invested is what you can afford to lose compared to investing all the money you have which means the result will be different.

[Powerjumboo]

We all know that investing is risky but it is not as risky as gambling where we will use money according to our ability to lose. If I invest in Bitcoin, then our investment will not be so risky that we can lose it in a moment. The cryptocurrency market is full of volatility, at any time due to any situation, there may be profit or loss in the investment, but it cannot be broken there, the goal must be prolonged, but then the investment can be successful. However, the security of the investment is essential to make the investment successful and risk-free.

[Hatchy]

The sentiment of CZ has said it all.
Most Investors or traders don't know that investing a money you can't afford to do away with or money they can't afford to lose is the exact thing that makes you panic either as an investor or a trader, because as humans that we are, at some point we will always display emotions even though we really believes in Bitcoin, because their is a dip just as this current dip that might shake your confidence, which might warrant you to sell in panic, though newbies investors mostly are the ones that normally does that but even as a veteran in the the crypto space, if you invest or trade with what you can't afford to do away with or what you can't afford to lose, your emotions may get the better of you when the volatility of the market is in full display as this present one, and CZ who has the largest crypto exchange (Binance) has practically said it all in a summary, which I 100% agree to, because all he said is true.
So let's try to invest only what we can afford, so as not to be easily shaken by volatility in the market.

It all depends on your trading psychology. This is more reason why as a bitcoin holder, you should avoid watching your wallet and the market too much. We all experience FUD but it depends on how we are able to control our emotions during the market fluctuations. The dips in the general market was unexpected, but that if BTC was already expected as there were many imbalance created by the market to fill up. If ones expect the market to continue in a bullish momentum for too long, then he's not ready to trade crypto. There will always be a season for the bulls and the bears, what matter is that you make the most of of them.

[betswift]

You may be right that there still some panic but in my opinion, it is a bit different since a person didn't invest all of their money because they invested what they can afford to lose so even if they did lose but they still have some money left that wasn't spend to buy coins. After all, the amount invested is what you can afford to lose compared to investing all the money you have which means the result will be different.

It should be such an amount - but some are not as cautious as they should be.

[Jating]

You may be right that there still some panic but in my opinion, it is a bit different since a person didn't invest all of their money because they invested what they can afford to lose so even if they did lose but they still have some money left that wasn't spend to buy coins. After all, the amount invested is what you can afford to lose compared to investing all the money you have which means the result will be different.

It should be such an amount - but some are not as cautious as they should be.

Perhaps those who are not cautious has the wrong mindset to begin with when they enter crypto space. Perhaps they are "influence" by some streamers or some personalities that this market is very easy and that you can make a lot of money in short amount of time, becoming millionaire.

And with that, when the price goes down hard, like it was a shake down as per definition of CZ, then immediately sell because they are worried and really be affected mentally as they never thought that this market is very volatile and very different as what others portray it. And it could also depend on where you invest here, for shit coins and meme coins, yeah, you could have sleepless night as you're thinking that it could literally go to 0 and before that could happen, maybe you are thinking of selling everything and not going to comeback.

[Nothingtodo]

We all know that investing is risky but it is not as risky as gambling where we will use money according to our ability to lose. If I invest in Bitcoin, then our investment will not be so risky that we can lose it in a moment. The cryptocurrency market is full of volatility, at any time due to any situation, there may be profit or loss in the investment, but it cannot be broken there, the goal must be prolonged, but then the investment can be successful. However, the security of the investment is essential to make the investment successful and risk-free.

Whoever has the ability will participate in investing, trading, holding, and gambling in crypto currencies to the extent of their ability. Almost all work in cryptocurrency is very risky, so before engaging in this risky activity, you need to prepare yourself in such a way that you can console yourself in case of a major loss. And it should also be remembered that everyone here must participate at their own risk. No one will take responsibility for anyone's losses and no one can be blamed.

[$weetne$$]

if you invest or trade with what you can't afford to do away with or what you can't afford to lose, your emotions may get the better of you when the volatility of the market is in full display as this present one, and CZ who has the largest crypto exchange (Binance) has practically said it all in a summary, which I 100% agree to, because all he said is true.
So let's try to invest only what we can afford, so as not to be easily shaken by volatility in the market.

CZ is right and speak the same truth that you can get from intellectual members of the forum giving to you that you the same advise that you will need patience to make good money from buying Bitcoin. Without patience you will be selling at the sight of every bad market. There are many ways to handle your emotions in the market, you can start with only using a small amount of money for investing that you can forget about if the market crashes and you lose everything although that is not going to happen as the market is going to be alive for more than we can expect because Bitcoin adoption is increasing everyday and soon we will get to the peak of the adoption of Bitcoin someday. Another way to handle emotions is to get your mind occupied.

[NotFuzzyWarm]

#1 rule as others have said: NEVER gamble/invest/bet more that you can comfortably lose. It makes it far easier to ride out low spots.

Always take a step back, try to see the Big Long Term Picture and just enjoy the ride.

[Queentoshi]

So let's try to invest only what we can afford, so as not to be easily shaken by volatility in the market.

Is it true that if you invest an amount of money that you can afford to lose you will not be affected too much emotionally when the market become too volatile and Bitcoin loses its value, but it is not only those who have invested an amount of money they can't afford to lose that go through this emotional roller coaster. You can invest an amount of money that you can lose and still have to battle and deal with the emotional trauma of maybe losing the money easily or the money not doing well in investment as expected. You can react emotionally and decide to stop investing in bitcoins.

[tabas]

We tell everyone to always invest only what they can afford to lose. The shaking of the weaklings always gets to happen when we've reached the first top. The next top might be more brutal when it reaches the point that many are going to panic and more news that shall come. Handling emotions is part of the growth of each investor on this market. If you can't handle the bigger blows, it only means that you're not yet ready for the bigger part. But if someone has survived the huge dips that have came to the market, well congratulations you're in and ready for that part.

[Churchillvv]

"An old phrase paraded as some kind of new opinion"

Even CZ is right but perhaps I do not treat the statement as some kind of special advise because of course I have heard that over and over infact since I joined this forum that has been one of the most popular advise I have gotten....

Even though but I'm the process of investing what you can comfortably loss remember to always treat your investment first as that is where you're net worth starts and ends, investments are not from junks but should be part of your major income expenses.

Have bitcoin ever failed ? no so panicking is like saying I trust bitcoin but I don't trust it with my money.

[PrivacyG]

It is too late for somebody who put their money on the line and lost part of it already.  Emotion management will do nothing to save them from the loss.  But I already know how it works for most of them who overly invested.  They will just quit in profound disappointment, unless a miracle makes their Cryptocurrencies enter a phase of recovery.

For the ones who still try to learn something out of such an event, what had to be learned has already happened.  Nothing can make someone understand risk more than losing things they should not have lost.  And as you say OP, this is the best way to avoid emotional damage and really unnecessary stress.  By not risking more than necessary in the first place.

[Darker45]

Although that's true that we should only invest what we can afford to lose, if you're in the crypto market, I guess you need to somehow develop strong hands. Just like in all markets, there's risk in crypto. It would help if you learn to develop a certain level of risk tolerance. Otherwise, if you're too emotional, risk-averse, perhaps you are in the wrong space. You might consider getting out of the kitchen altogether.

How much can you afford to lose really? Is it $100? Or $500 or $1,000? It's likely that during bull runs you won't be satisfied, or perhaps regret, with your $100 investment, but during crypto winters, you'd realize you should've invested much smaller amounts. This conundrum would go on forever in this volatile market. At some point, you'd have to temper down your emotions. If you can't do it, this market might not be for you.

[LogitechMouse]

The sentiment of CZ has said it all.
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So let's try to invest only what we can afford, so as not to be easily shaken by volatility in the market.

Very easy to say, but very difficult to apply.

There might be some who can control the amount of money that they can invest, and they aren't affected if they lose it all, but there will be more that will throw their money even though they know that they can't afford it to lose. Why? Because of the desire to make more money. They believe that if they invest more money, they will make more money. At least, that's what most and newbie investors are thinking for most of the time.

I've seen many on different social media platforms saying that they almost commit suicide just because they lost it all. I've seen many saying that they can't afford now to buy the basic things that they need just because they invested it, and they lost. This is why it's hard to apply the "Invest what you can afford to lose" thing because many wants to make money. At the end of the day, you will not really know how much you can afford to lose if you don't experience it first-hand. Try to lose 50$ and look how you will feel about it. Try with 20$, 100$, 500$ and more, and from there, you can decide how much you can afford to lose.

[michellee]

If you can not handle your emotion, you are done. You even don't have a chance to learn from your mistake because you can not reduce or calm down your emotion. That will make you lose your chance to see the benefit from the current situation for you because your tension still high without seeing the positive for you. If you want to invest, you must use the money you can afford to lose. That will prevent you from the big lose that you might get in the future if that is happen.

[Solosanz]

Correct, that's why 95% of my wealth are in Bitcoin.

Life is gambling, investing has no guarantee you will earn instead you can loss and the worst scenario you lost all of your money. Bitcoin, altcoins, gold, silver, stock, real estate, business are the example of investing.

If people want safety, just buy mutual funds or debt securities which give fixed return, but there's no way you can be rich if you invest in this one.

The key is invest in high risk and hope one or few of them can cover the other assets, or be greedy on the asset that you confident.

[taufik123]

Quite often I say in this forum about "Investing should use the money you can afford to lose",
But in reality many beginners or even those who are just learning the basics of trading start their investments very poorly.

Using money that they even still need for other purposes or savings for their lives, this will certainly affect their mentality when the market becomes very unpredictable as it is now which is experiencing a deep decline, only panic and the desire to sell always arise.

I am probably quite reliable in any market situation because I have gone through 3 cycles of Bitcoin and will not be affected by a decline like this.
And also I use the money that I do provide for long-term investment by buying gradually when the decline continues to occur.

CZ's sentiment just reminds us that anything can happen in crypto and we need to be prepared.
A stable mentality will give strength and will not be shaken even if the market is not doing well, Mental stability beats all market volatility.