How to Stay Calm When Your Coin Drops 80%
As far as crypto is concerned, seeing the price of your coin fall out of the sky is one of the worst issues to deal with. One day you wake up and open your wallet and find out that the coin you so desperately bought has fallen in value by 80 percent. To a great number of individuals, this can be the world ending. The fact is that the crypto market is highly volatile. Prices may increase at an extremely rapid rate, and simultaneously, they may decline at an equally rapid rate. The question that arises then is, how are you going to remain calm during such times?
The initial step is to accept that crypto market is unpredictable. It is not as if you had a savings account in the bank and your money grows at a safe rate. Cryptocurrencies have their ups and downs, and sometimes they are accompanied by heavy losses. It is important to come to terms with this truth early in life to prepare your mind. You will not be utterly surprised when the coins hit rock bottom; because you know they are going to hit the bottom. I recall that upon becoming involved in the crypto news, I could observe how even the largest coins such as Bitcoin and Ethereum had their own times of severe crash and then recovered. That brought me some relief when I dropped smaller coins that I purchased.
The second method of calming down is reminding yourself of the reason why you invested in the first place. Were you investing in the long-term opportunities of the project? Or have you just wanted to make easy money? When it is because you believed it would be long term, then it hurts when you go down by 80 percent; that does not mean the project is dead. There is time to recuperate markets. The common phenomenon in the current world is that many advertising investor succeeded in their ventures after suffering losses in the past because they believed in the future of their investments. But when you bet to gain quick profits, then you have to learn that you should not bet with your emotions.
Not checking your wallet every second is one of the effective strategies. The longer you look at this falling number, the louder fear and panic will be in your heart. Some even sell on panic in the bottom, to unfortunately realize later when the coin rebounds. You can check the chart every minute, but then you should pay attention to other spheres of your life. Do work, do your side hustle, or even find out even more about blockchain and crypto projects. The fewer the hours you observe red charts the more you can remain calm.
.jpg)
It also assists one to talk to oneself favorably. We heard a lot of that in Nigeria where we were told as children that nothing lasts forever. The same applies to gains as well as losses in crypto. In the case of the coin, when it goes up it will not go up indefinitely. When it goes down it does not stay down indefinitely either. No, telling yourself such things will make your heart calm. In rare instances, I convince myself that this loss is only on paper unless I sell. Suppose I believe in the coin, then this is but a seasonal thing.
The other lesson is that one should never put their money in places they can never afford to lose. This is the most widespread crypto advice, which is ignored. When you invest your school fees, house rent or your business capital in purchasing coins then a decrease by 80 percent will not only shatter your heart but your life. You will not rest easy since you know that there is more to that money than just responsibility. But in a case where you can afford to invest only on what you are capable of waiting on until the coin bends, you can still live in the world. You still have time to purchase food, pay bills and move on. I also acquired this lesson when I once used the money I wanted to do something important in order to purchase a coin and the coin crashed. The pain was double. Since then I vowed myself never to repeat that mistake.
The other remedy to panic is diversification. When all your money is in a single coin and it falls by 80 percent it will seem like the entire world has fallen. However, when you diversify your investment in other coins or even other non-cryptocurrency assets, the collapse of a single coin will not ruin the whole world. You could lose in one place, win in another. This equilibrium will keep you cool since you will not have to worry that your whole future will be pegged on the activity of a single coin.
Listening to excessive noise online should also be avoided during times of massive losses. People panic and create fear on Twitter, Telegram, or WhatsApp groups when the coins fall. Others will even tell you that your coin is never coming to rise again, despite their ignorance of the future. The more you hear these kinds of voices, the more restless your mind becomes. Rather seek out rational and informed sources. Read even articles, or rely on more experienced investors who have been through numerous market crashes in their lifetime.
One more thing which should be kept in mind is that even the losses are lessons. Whenever your coin falls, you must say to yourself: what can I learn what? Was my entry point wrong? Were I a hype investor? Have I permitted the cupidity to reign in me? Even a drop of 80 percent will not be a complete waste provided you can glean one lesson out of every fall. Actually, it is an experience that would make you stronger and wiser to invest in the future. The majority of the best Nigerian traders I can think of today are people who had lost so much but instead of throwing their hands up, they learned.
Finally, you should not allow your emotions to influence the decisions you make regarding investments. Emotions will lead you to sell when you ought not to as well as to buy when you ought not to buy. Remaining calm implies that one needs to take his time to take any decision. When your coin has dropped 80, breathe, relax and think clearly. Question yourself whether the project has any future potential. If yes, then maybe you can hold. No, then perhaps you cut your losses and cry foul. All that is needed is that you operate in good state of mind and not with fear or greed.