Emotions & Unrealized Gains In Crypto

Being a crypto investor is a very funny feeling but interesting, well this feeling just doesn’t dwell with crypto investors alone but the general digital market investors. But I will be talking about crypto investors and using myself as an example. Cryptocurrency is a digital asset we buy hoping it gets high in value enough for us to make gains. Everyone is investing because they want to make profit, no one invests hoping they lose their money. So it’s normal to have expectations on your investment. Having a digital asset is like putting your money in fixed(sometimes not fixed) deposit savings account hoping it increases in value and puts you steps ahead inflation. Especially when your local currency is happily married to inflation.

Unrealized gains are gains gotten from your asset (that is the difference between the current value of your asset and the value you bought it)without being sold. This means that as long as you have not sold the asset, your gains are unrealized. Most of us here have huge Hive stakes here as Hive power, it’s an asset that we have that can be considered as a savings in my opinion. This is why I am glad that 50% of author reward is paid out in HP. This way the blockchain helps me save which can be a future investment, because if I had been withdrawing my full author reward ever since I started Hive, I don’t think I would have any investment to look back to and feel fulfilled.

While we are stacking HP and feeling good about it, at times the market can be so beautiful through its pump price. Thereby giving our account a higher value, imagine the price of Hive hitting its all Tim high $3.4, everyone will be 6.9X richer than their current worth, it gets more interesting when the value exceeds that and gets to $10 per Hive. Most of us here will be so happy and feel really rich. But then, this is not money in the bank, this is money on our Hive wallet, that is not liquid, that takes complete 13 weeks to become liquid. Even when it becomes liquid, it’s unrealized gains because we haven’t sold it yet, but yet, while looking at the figures we feel wealthy.

I don’t know of anyone but my thinking will change because I will start having thoughts like someone worth the value on my Hive wallet. Some people might start considering buying a house or a car, because they are worth 6 times they used to be worth, probably upgrade their lifestyle. It’s the feeling of knowing that you have that amount that gives you the confidence to do all that. But how do you control your emotions and remind yourself that these are unrealized gains yet. I guess this is how billionaires who have their wealth in stock feel.

As long as you haven’t sold any of your crypto assets, you don’t have the money yet, even if all your crypto assets gains value, that doesn’t mean you will sell all and take profit. Well, in my opinion I think the only way I can control my emotions anytime my crypto assets gains massive profit is to take 50% of the profit, spend 10% off the profit and keep 40% just incase the market dips. This way you are safer emotionally, if the market dips you buy the dip, if it doesn’t dip and keeps pumping, you still have the remaining 50% to rely on. This way it becomes a reality that I have the money and I can spend the money. Instead of always dwelling on unrealized gains that I can’t spend because I am holding.

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