6 Stages of Emotion Every Crypto Trader Can Relate To
Whether you are a new day trader experiencing your first Bitcoin crash or an experienced buy and holder watching a coin in your wallet swing from green to red and back, I wrote this for you.
If there is anything the cryptocurrency market is known for, it is the quick price changes and the emotions it invokes across traders of every experience level.
Whether you are a new day trader experiencing your first Bitcoin crash or an experienced buy and holder watching a coin in your wallet swing from green to red and back, I wrote this for you.
In this article, I will guide you through every Crypto Trader's emotional journey.
Will you find it relatable? Keep reading.
1. Excitement
Getting into cryptocurrency can be exhilarating. You might have heard friends talking about how much they made from this coin or that coin, and now you are curious.
With some extra time on your hands and the hope of making some cash, you think you should give it a shot.
After taking a few crash courses and getting some help setting it all up, you make your first purchase based on recommendations.
As you watch the crypto charts, you are nearly giddy with anticipation, imagining the money you could make.
For a moment, you feel regret for not starting sooner but shake it off. You are here now, and the possibilities seem endless.
Welcome! Your life might never be the same again (for better or worse).
2. Confusion
At first, everything feels foreign. The terms, the jargon, the charts, the fast-paced market. All of these new things can be overwhelming.
Of course, mistakes are common and inevitable while you learn the ropes.
You might even pull out of trades too soon because you are not confident in your decisions. This is when you are the most active in your online communities, surfing the web and finding blogs like this for advice and guidance.
You try to keep a positive attitude. With tips and encouragement from friends and online communities, you persevere.
Finally, after all your patience and hard work, you make a profit for the first time.
The thrill of that moment is unmatched.
For a brief period, everything feels right, and you believe you have found your ticket to financial freedom.
3. Anxiety
Once you have gotten the hang of things, a sense of confidence kicks in.
You might start making bigger moves, thinking you have a decent read on the market.
You have been saving up for a while and might decide it is time for your first big trade. Your friends remind you of the risks, but you are determined.
The market has been continually going in your favour, and you have been reading whitepapers so you feel sure enough to take the risk.
However, any seasoned trader knows that cryptocurrency is not that easy, and it is important to pay attention to the patterns that fly under the radar. It is not long before you notice a dip.
Your heart skips a beat, but you remind yourself that dips happen all the time.
You try to stay calm and hold your position, but you cannot stop checking the graph.
You find yourself waking up in cold sweats, constantly refreshing your screen, hoping for a rebound. You oscillate between pulling out and HODLing.
You try to convince yourself that maybe the market probably does not turn as quickly as you assumed. Maybe it is just a matter of time.
4. Sadness
Then, the dreaded moment arrives. The market tanks and you are left staring at a red line that does not budge.
All your optimism fades as you realize there is no way out. You did everything right, followed the advice, and researched thoroughly. And yet, here you are.
The memes on Twitter sting, and your friends talk about how lucky they were to avoid the coin you chose. The others in the same boat encourage you to hang on, but you feel defeated.
You cannot remember the last time you slept soundly. You obsess over what went wrong, knowing logically that losses are part of the game, but emotionally, you cannot stop blaming yourself. You have lost control and are left at the mercy of the market.
5. Anger
After the sadness comes anger. You might feel betrayed by your friends and everyone who encouraged you to invest. Most of all, you are furious with yourself.
You have tried everything you know to improve your position, but there is no saving it.
This is where many new traders drop out. They close their wallets, delete their accounts and never look back.
You are tempted to delete all the tutorials, mute crypto-related keywords, and leave the group chats.
Your friends know better than to bring it up anymore. You wish you had never gone down this path.
Crypto was supposed to save you; instead, it left you reeling.
6. Hope
The intensity of crypto trading fades, and you start to recover emotionally. You took a break from trading for a bit, but you keep checking. You think you can still do this.
You come to the realization that many successful traders come to. You realize that the market has cycles, and there is always a possibility of it turning around in your favour.
You start analyzing new opportunities and making small trades here and there.
Cautiously, you watch as the market slowly climbs over the next few weeks.
Once you feel secure, you trade and take whatever profit you make. It is not as much as you originally invested, but more than you expected.
You feel a wave of relief and gratitude. You survived a crash, and somehow, despite everything, you are ready to do it all again.
Now you have come to the end, did you find it relatable?
Cryptocurrency trading is an emotional journey full of highs and lows.
The thrill, the anxiety, the crushing disappointment, and the eventual recovery all come together to create an experience unlike any other.
It is risky, unpredictable, and often exhausting—but for many, it is impossible to resist the allure of the next big win.
Disclaimer: This article reflects the opinions of the writer. Â It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.