How to Stay Sane During a Crypto Crash 2022!
Is this your first crypto crash, anon?
Don't worry, us crypto longtimers have been dealing with prices going in the wrong direction for a while now. I'm going explain to you how to stay sane during a crypto crash.
Don't Quit Crypto.
Back in 2020 when Ethereum was about $290 and COVID was just becoming mass reported on, many people in the crypto community weren't ready for a true crypto bear market.
When it came, it was ruthless.
Ethereum went from $290 to $80 in less than 2 months. All crypto assets took a severe beating. However, the crypto holders that held were in it for the long term knew not to stress, other holders not so much.
Long term holders that held through the drop and continued to use the Ethereum blockchain and other crypto apps like Uniswap, 1inch, etc... were awarded with airdrops.
Airdrops are basically free tokens of a company or product that are given to users for being early or meeting the qualifications to claim tokens.
Uniswap the largest decentralized exchange built on the Ethereum blockchain that offers users the ability to buy or sell any ERC-20 token on their platform. They also allow users to trade in almost any pair they want with any crypto they want.
When Uniswap launched their UNI token users were given 400 UNI for free, the all time high went to $45. So, if you held it would have been a $18,000 stimulus from Uniswap.
Obliviously, these tokens are speculative investments, but they have real value in the crypto markets. If you continue to use and learn the blockchain and follow crypto news, opportunities will come. You might also receive airdrops in the future. However, this is only if you continue to learn and use apps.
Make sure you do your own research on protocols and apps, you don't want it to end up like LUNA.
Crypto investing is hard, but don't let that deter you from being able to get good entry points to accumulate your highest conviction coins. The crypto boom attracts many new ideas and new entrants. This leads to incredible growth for platforms and total crypto market cap.
Related: How to make money in a crypto bear market.
Stop Listening to Negativity.
Regardless of where you are getting your news, you will come across negative sources. These are the same people telling you Ethereum will never upgrade when in fact the merge is less than 100 days away.
The real people you should follow are developers and people who have a real understanding of the developing crypto systems. This is an important lesson on why listening to mainstream media is a bad idea.
It's funny how quickly sentiment can change in just a few weeks. From people being happy floor prices are holding up on their favorite NFT's to change to negative Nancie's in just a few days. By learning about what's being built on these blockchains you will have the psychological preparation to overcome unnecessary negativity.
The Next Bitcoin.
In the past decade Bitcoin went from -$500 to briefly breaking $65,000. New entrants that purchased at this price were looking at this stunning number and only thinking of the next glorious pump, however, it didn't happen.
Crypto newcomers got an education on why Warren Buffett's timeless advice applies even today.
"Be fearful when others are greedy, and greedy when others are fearful."-Buffet
Bitcoin dropping presented new ideas for other speculative investments to build new problem solving blockchains. New blockchains are being developed to help with scalability, privacy, and security. This information isn't going to be found on TV or on mainstream sites, you can only find it by doing your own research.
If you are truly trying to find the next bitcoin, then you will need to become more knowledgeable about blockchain and crypto news. Opportunities will present themselves, but only to the people who do the research.
Relax and take a breath.
Sitting at your computer and watching charts isn't going to help with your mental health. Go take a walk or meditate for a few minutes. You need to be focused on your mental health and fitness. I find lifting weights to be the best when trying to get your mind off crypto investing.
Watching steady declines in the markets will ruin your happiness.
Make sure your spirits remain high and focused on the real goal to attain freedom. You want to be able to pursue the projects that are meaningful to you or traveling somewhere you've always wanted to go.
Remember your net worth at the peak of the bull market?
Check price, good price!
Now, think back to that moment and try to remember why you are in Crypto. You need to always remember the goal. It helps when you have a lack of focus.
Join the conversation.
One of the best ways to overcome a bear market is by talking to people similar to you and me. Personally, I like reddit and I follow a subreddit call r/ethfinance. They are primarily talking about the Ethereum blockchain and it's recent developments.
This community is fantastic and they are open to answer questions you have about Crypto in general!
If you are interested in different coins or crypto's you will find them on Reddit as well. Please note, if you do join these conversations these people will generally talk about the positives of said coin, they usually fail to mention the negatives of the coin.
New to Crypto and wanna learn? Here's my Twitter, follow me for updates!
Twitter provides crypto users the ability to search blockchain and crypto news any time or place. Just type in the symbol or name of the coin or blockchain you're interested in and BOOM!
You just got tweets of millions of crypto holders who may have new information. Be sure, to verify the information you receive because Twitter is a open source platform now and a lot of people may promote some random coin.
Final thoughts.
Whether you're in cash or holding crypto. It's a bad idea to quit and leave the space. Now, I am not saying you have to invest, I am saying that blockchains are growing and more traditional companies are investing in this technology.
Currently their are 300+ million active users in crypto and is estimated to reach 1 billion by the end of 2022. Though the current number say's 300+ million, it's likely this number is even lower due to the fact that many users have multiple wallets.
In the future all blockchain interactions will happen seamlessly. It won't happen tomorrow or next year, but users will be using crypto one way or another. As more platforms accept crypto and people learn about it's benefits, the markets will do it's part.
For now, just forget charts, keep learning and enjoy life.
-M
Disclaimer: Mason Capital is an independent publisher, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Mason Capital does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.