Topic: Rollercoaster of emotions. How to deal with? (Read 351 times)

Rule 1- Always Invest what you can loose

Bitcoin is profitable for Hodlers i.e Those that buy and keep it for a longer period of time. So the thing is that you should buy low and sell high. They are timely event that for BTC this year 2024. This include ETF, Halving etc. So by speculation BTC will end high.

Rule 2- After making your analysis allow the market to play out

If you keep checking chart, you will always make hasty decisions.

Rule 3- Be Patient

It’s normal for a newbie to feel like that, having the fear to lose and to overcome roller coaster emotions due to bitcoin’s volatility. But believe me, experience will help you manage your emotions and live life with balance. If it means losing at first also you will have something to learn, then so be it, face your losses but still continue to invest while harnessing your knowledge and skills. And invest within your means, like 3-5% of your monthly income so that if things do not go based on plan, then losing your capital won’t be a big issue for you.

However, know that emotions become our best enemy when we invest or trade. It’s really hard to control our emotions most especially in times of winning or losing, but having often exposure on the market, you will learn to slowly control your emotions so you can focus on your goal or target why you invest in bitcoin in the first place.

Well the cryptocurrency industry is a risky one especially for those who are scared  and since there isn’t any specific amount expected to be invested, I think you should only invest what you can afford to loss as I mean nothing is guaranteed in the industry and as such you should be responsible for every action you take.
I love your caption which already proves you’re already aware of the risk involved and you shouldn’t be focused more on the profits but rather work on strategies that will limit your losses and just as others have already told you, you should always make sure you only invest money you can afford to loss.

If your financial condition is that you already have children and a wife, then the appropriate amount for you to invest is the amount remaining after the family's needs are met.
If you and your wife have income, then arrange it by having a discussion with your wife to determine how much will be allocated for Bitcoin investment.

Profitable investment lies in the type of long-term investment that is carried out regularly every month.
Because the crypto market is very volatile, don't worry when prices experience a price drop like what happened yesterday.

With Bitcoin market, investors will have to learn about Fundamentals, Technical Trading and they have to learn more than that.

How to store their bitcoin.

If they store their bitcoins in accounts on centralized exchanges, I wish them best and hope they won't lose their coins on CEX.

Reminder: do not keep your money in online accounts

When CEX has a bankruptcy, if they make compensation, they will pay you in fiat currency and don't care about how much does Bitcoin cost at the time they bankrupted and at the time they pay you in compensation.

Mt.Gox, FTX filed documents to pay their users with very low price of Bitcoin years ago and in 2022. Imagine you store 1 bitcoin on FTX in 2022, and now if they compensate you, you will receive like 1/3 bitcoin because Bitcoin has good rally from its bottom in 2022.

Painful.

Like many pieces of advice I give to those new to this market, if you want a lasting profit, invest in knowledge of the field you want to research first. And in a field that includes finance and technology, ask yourself how do you define investing?

Frankly, are you willing to lose money on this, do you prefer a painful experience or enjoy the comfort of a specific plan? There may be many tactical suggestions, but you need to understand that this is a personal plan not for the crowd and not everyone can follow a strategy. Don't be too hasty with the appeal of the emerging market. Yes but can't see the risks. I like the balance between risk/return in the investment process, so by learning and experiencing including failures will help you be more independent than dependent. If possible, I think the salary will help, tt is reasonable that you are willing to lose 5% monthly to access this market.

It's always been a psychological game.

They make you fearful, thrilled, then pump, dump, shake you out.

The general advice that has always worked is:

- do not do any intraday trading, especially not with leverage
- do not be super focused on daily crypto news
- live your life and think on long term
- invest only as much that doesn't make you question your sanity every night

I prefer just not to watch too much news and not to open my wallet too many times when I'm not planning to buy or sell something. Not Bitcoin, of course, I'm planning to hold it for many years to come, this is why I'm not too bothered about short-term fluctuations.

first here mate is how much are you earning monthly , and how much the amount you can really risk and forget for such a time ?
because that will evaluate how much you are willing to invest here , remember that the money should be the funds you can risk or at least can let go for some years because this market is hardly to grow in just a year time.

Tried to keep calm and never check your portfolio every day. I will tell you OP that emotions can be triggered if you keep checking your investment, it will bother you too much and make you think negatively instead, of focusing on holding. The market is naturally will pump and pump, don't get too attached within and stop being too emotional because that will lead to making wrong decisions and panic selling. That is why investing in crypto needs patience, courage, and of course, trust. If we are investing in usable projects then we have nothing to worry about, might it dump today but certainly be rising back again.

this question has been asked a lot of time and at this point I will choose to agree that we not being truthful to ourselves. We all know how much we are earning and we understand how much we can afford to use for an investment that will still give us the leverage of living comfortably.

Understand that when it comes to the amount you should use in making any investment, it shouldn't seem like their is anything too special because you are investing in bitcoin, take it that you are buying a known asset like land that you know that within two years, it value will appreciate. How much of your savings would you comfortably put into purchasing that land? You know that the price of that land you're buying won't just appreciate like that and what you need do is to spend an amount that wont keep you hungry after making the purchase.

It's as simple as that when you intend buying or holding your bitcoin, buy what you financial strength can carry.

After years in this game, I can say that bitcoin thrive. But how much to invest? Its a balance of guts and wisdom. Whats my risk tolerance? Can I afford to lose much without sleeping? I never invest more than 50% of my monthly income in Bitcoin. Thus, I play without betting the farm.

What about that emotional rollercoaster? Its real, and its intense. However, if you're worried about market volatility, you're probably overinvested. Investing should be exciting, not scary. I learnt to view financial decisions as a strategic game rather than a gamble. Be informed, but dont obsess over everyday changes.

Finally, strategy. Great to see Bitcoin support. Diversify. Never put all your crypto eggs in one basket. Divide your investments among assets. This reduces danger and balances your view. Bitcoin is a marathon, not a sprint. Maintain a long-term investment strategy and ignore short-term volatility.

I can totally relate to you. because I have gone through these when I was a newbie in crypto and early in bitcoin investment. I think everyone had same experience at some points. it is a type of FOMO we have (Fear of Missing Out) and a Type of Panic.
when we see the bitcoin and other altcoins price increase we think we are going to miss the boat. and when a coin's price which we bought start decreasing we start panicking because we are afraid of losing.

Everyone will eventually learn to control their emotions so you will too. the best thing you should do is that you just don't check market again and again. check it once a day or even for longer time. specially when you don't have anything to trade.

This is very hard to answer TBH because there are different factors to consider with this one.
I can say that you should invest 500$ of your monthly income, but do you have a monthly income of more than that amount? I can say 100$, but is that enough for you already know that you are earning 5 figures every month? Your monthly income, risk appetite, etc. I can't speak for you about this because you might be richer than many people here. I will just share my experience that every month, I'm allotting 100$ of my monthly salary to invest in different assets (crypto, stocks, bonds).

What's your purpose in investing in the crypto market? Long-term or short-term?

If you're investing for the short-term then it's stressful to watch because one day you can see the crypto that you bought up 5% for the day, but the next day it will go down 5% or even more. Deal with it if you are a short-term investor. Now if you're a long-term investor, you don't need to watch the market because it's kind of useless.

I'm a long-term investor, and yes I'm still looking at the market daily, but I'm not affected by the short pumps and dumps that are happening with the crypto market. I learned already how to not get affected by this, and only focus on my long-term targets. I'm just looking on the market so I keep myself updated on what's happening in the crypto world. There's no sweet spot, and you will get overwhelmed at first, but over time, you will learn not to. I also felt that one when I was starting, but what I did was I kept on learning, and learning.

Yes, this method is quite effective for those who want to invest in the long term. it's like people saving in the bank, setting aside a little of what they earn for future needs.
But still, always use money that you are unlikely to use within a certain period of time in your long-term investment planning. because market situations and a person's economic conditions can change very quickly.

The story of my life: I was once a "newbie" investor, standing at the same spot with the same feelings several years ago. Psychologically, to extricate oneself from the rollercoaster of emotions, it is crucial to recognize that the fear of missing out on potential gains in Bitcoin is merely an irrational thought that can lead to impulsive buying and selling. As we say in my country to anyone feeling anxious, take a chill pill. Stay unbothered and remain resolutely committed to holding your Bitcoin. Disconnect from anyone advising you to sell as a way to cope with emotions.

In my own opinion, I don't advise that you need to invest monthly and get money from your income, what I can highly suggest is to invest money that is your extra money, don't use the money that you know you will needed in shortly because we all know how volatile the market is.
So using a money that you will not needed and not too much for you and you are afford to lose it is the best!

The answer is to only invest what you're willing to lose, OP. BTC is inevitably going to go up over time; it's a long run, big picture deal. You need to sort out how much of your income you're willing to throw into BTC on a regular basis; DCA and you'll come out ahead.

How much of your monthly income are you willing to put on the line really? That's the answer to your question. We can give out a number here and if you're not comfortable with that you wouldn't be. After all we all have different propensities and capacities for risks. Some people will be willing to take 50% of their entire income in investing, some will be okay with just 10 or 15, some wouldn't be bothered to invest at all cause they feel like they don't have enough money for it. The answer lies within you, if you wanna know how much you'll be able to put on the line, think about how much money you'd be willing to invest without it putting you in this roller coaster of emotions.

The thing about crypto is regardless of what coin you invest in, as long as you play your cards right and you don't go out investing on every "next bitcoin" cryptocurrency on the market you'd still get some sweet-sweet gains, and as long as you have a budget for everything that you strictly follow I say you have a great chance at succeeding. Just once again, figure out how much of your monthly income you'd be willing to not see for a while as you put it into work.

My advice on this has always been to invest an amount you can afford to lose. Now, I don’t think it’s possible for you to invest an amount you can afford to lose and still have all of that fear or anxiousness when watching the market go up and down. Don’t try to rush making money of Bitcoin or any cryptocurrency. Invest a little amount you won’t cry over, and then you can gradually invest more small amounts (DCA). One day you’ll notice that it had turned to a lot of money but the whole time, you didn’t feel like you were really putting a lot of money.