Okay, so when I first had to go through the ‘bitcoin crash’ it dipped almost 80% and I thought I was going to have a heart attack.
With this year around the entire cryptocurrency, market cap went down much as 69% from the all-time high with $830 billion in January.
With so many sell-offs it had many crypto investors worried – and as the price kept plummeting it badly hurt the new ‘investors’ and these poor folks had to go through what famed psychiatrist Elisabeth Ross called ‘The Three Stages of Grief”
Denial, Depression, and Acceptance.
Stage 1: Denial: Market “This happens every year, the down market and the tanking in price is healthy. Everything is fine”
Stage 2: Depression: “Oh my god, my wife/husband/boyfriend/girlfriend is going to kill me” “my life is over” “I’m a failure as a human being”
Stage 3: Acceptance: The last stage is with them selling their investments at depressed valuations and swearing off cryptos for good.
If the examples above rings true for you, then please pay close attention. You’re not an idiot – you’ve just got swept up with emotions from the mainstream news media.
Yes, the blockchain and the crypto assets are the future but as with everything else, there are ups and downs as it goes through boom and bust cycles.
The good news is that we’re still very early in the blockchain and being early in the blockchain is that the market will bail you out.
My rule of thumb is to never borrow money to fund a crypto investment especially if you’re a small investor and to remember to just ride out the volatility because every pullback came the higher highs.