Bear Market: FUD and Tough Decisions!
"Indeed crypto is not for the faint in mind"-@peaq
The market is highly volatile and during this period we are advised to trade carefully. However, the psychological part of trading and investing is the greater part of dealing with cryptocurrency. Within this time, we are expected to keep a firm mindset and have a long-term approach to it. Regardless, this is where the challenge for some people lie. The fear, uncertainty, and doubt begin to creep in at some point.
In a recent conversation with a dear friend of mine who I introduced to the world of cryptocurrency a while ago, he expressed his concerns over the bear market and thoughts on his current investment.
He recently bought 1.0BTC worth in August 2021 when Bitcoin was floating around $46,000.
Part of me felt he was slowly becoming skeptical and had begun to weigh his financial risk forbearance as he expressed his fears. Earlier on, if I was asked about my friend’s strength of mind on crypto, I would argue that he could not be caught off guard as he is someone that has researched and studied the market cycles for over a long period of time.
However, when BTC dropped below what he bought it for, he seemed to have it all together. When the coin further declined, my friend started to fear for his investment a bit and was caught in the middle of wanting to make a quick decision. I tried to encourage him, advise him against selling, and further advised him to take the following into cognizance: 1. I reminded him that quite a number of developers are dedicated to the constant development of the BTC project. Regardless of the market’s volatility and losing its momentum, BTC cannot be compared with shitcoins that have flashy marketing stunts but lack the back-end development backing it needs to build out the protocol.
2. I advised him to see it as an opportunity to further channel some of his loose funds into stablecoins because there is a high chance that some of these coins can be staked to yield more in the future.
3. I brought up the importance of staking. It helps to increase the value of a holder’s portfolio for a longer period of time. By staking his coin, he does not have to really bother about the daily price fluctuations because his staked coins will continue to earn yields.
4. I also quickly mentioned the importance of searching for projects that have a growing community and benefits. At that moment, I highlighted how beneficial Hive has been to me since I joined. I urged him to give it a try as I have not regretted my decision thus far. Just reflecting on that conversation made me realize that a lot of people go through psychological back and forth during this time in the market and this pushes them to make decisions that could be regretted in the long term.
Quite a number of us –crypto lovers can relate to the FUD that either slowly or quickly creeps in during the bear market. Personally, I have had to constantly train and still train my mind to view crypto from a long-term perspective. In so many ways, this has helped me during this bear market, in making decisions, and in advising a few newbies in the crypto space accordingly.
I am glad my friend took my advice, is currently considering joining Hive, and is exploring the diverse communities available to see what value he can bring to the blockchain upon joining.
Till I come your way again…
Thank you for your precious time!
Photo edited using canva!
*Contact and Support: Instagram: @pearlquasar_ Discord: peaq#5727 Telegram: Pea_q
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