How-To-Not-Get-Addicted-To-Cryptocurrency-Trading-&-Price-Watching

Trading on any market is a rush. Day traders have been known to trade thousands of dollars at one time, profiting or losing tens of thousands on great days. In the cryptocurrency market, frequent and liquid trading has become more and more prevalent.

Exchange sites sometimes offer high liquidity to traders and can even extend temporary loans to facilitate larger trades. Each of these factors contributes to a growing class of cryptocurrency traders that are constantly checking, rechecking, and trading cryptocurrencies.

But financial and medical professionals alike agree that, if it isn’t done in moderation and with the right mindset, trading stocks can quickly go from a hobby to an addiction. Perhaps even more troubling from a pragmatic perspective, trading cryptocurrencies in the current market can very quickly turn from investment to gambling—especially if the trader is making quick decisions regularly while trading.

The effects of an addiction to trading are no laughing matter. Over-trading can make a person’s financial situation worse, ruin relationships in the real world, and lead to physical or mental conditions like agitation or depression. Psychologists continue to research the ways that day traders experience stress and they continue to come to the same conclusion: an addiction to trading assets can be a debilitating condition for some.

But there is fun to be had on the exchanges, too. The rush of making a good trade, the monetary incentive to turn a profit, and the constant learning involved in the trial-and-error process are all factors in the desire to continue to trade—and there’s nothing wrong with those things! The key, most analysts would agree, lies in moderation.

Traders who find themselves checking exchange prices compulsively, spending money they cannot afford to spend, or isolating themselves from the real world to trade should pay close attention to these three tips in order to avoid developing a dangerous and unhealthy addiction to a practice that should be fun and exciting.

Acknowledge Market Volatility

One of the biggest reasons that investors become addicted to the process of trading is that they become obsessed with turning a profit. When things don’t go the trader’s way, he may decide he needs to “double down,” doing trade after trade so that he might offset the loss he suffered.

This is similarly a cause of compulsive checking of cryptocurrency price lists and an obsession with the cryptocurrency market. Traders that become infatuated with spotting the patterns that drive prices up or down may continue to check, hoping that they finally cracked the code.

The cold hard truth? No one cracks the code. While successful asset traders exist, succeeding as a frequent trader in the cryptocurrency market is incredibly difficult. Furthermore, even the smartest traders in the world occasionally make a failing trade. But the difference between a smart, profitable trader and an addict is that the former recognizes the volatility of the market and follows his strategies, whereas the latter resorts to “chasing the profit” to try to offset their failure, often at great risk to himself.

In reality, the cryptocurrency market is wildly unpredictable. While this could, and often does, mean massive potential profits, it also could mean large and unexplained losses. Though this may seem depressing at first, this simple reality actually serves as the saving grace for a problematic trading/gambling mindset.

By recognizing that the market is inherently volatile, that losses are often just as common as profits, traders can begin to prevent themselves from lashing out with riskier trades and chasing profits at the expense of strategy. For those that compulsively obsess over coin prices, acknowledging the inherent randomness behind the computer-generated charts should put things into perspective.

The idea that the cryptocurrency markets are volatile is empirically backed, too. The lack of governmental regulations of these new markets, the back-deals that drive prices, and the formation of small ICOs with little oversight all contribute to the volatility of cryptocurrency asset trade and exchange. Recognizing this reality is a good way to help prevent addiction.

Focus On The Long-Term

A heavy theme of the first recommendation is that an addict will chase short-term gratification at the cost of his own sanity. With this in mind, traders should always remember their long-term goals as investors. Though the promise of quick profit is often the reason investors come to the cryptocurrency market in the first place, it is important to have a long-term investment strategy in place—especially if large amounts of money are involved.

When hit with the urge to make an impulsive, risky trade, investors should try to recall their strategy and long-term goals in investment. If the goal is to make an overall profit a majority of the time, then that should be the goal towards which each investment works. If the plan is to make a few risky trades and call it quits, then this should be the goal.

Especially on the volatile market of cryptocurrencies, it is important to have a concept of the long-term, not just of the short-term.

Investors who focus on the short-term too hard become especially susceptible to tunnel vision. When the focus is solely on trying to maximize momentary profit, problematic investors will be unable to see how this trade might fail, or how this transaction may or may not fit into their larger plan for profit. When these short-term profits inevitably backfire because of the volatility of the market, problematic behaviors ensue when the trader tries to recoup his losses with constant and often risky attempts.

Traders who want to avoid addiction should take concerted steps to conceptualize and visualize their long-term goals with investing. Even writing the goals down on a piece of paper to keep in the desk can do wonders. Taking actions that all contribute to a central, positive, realistic goal can help to avoid tunnel vision and risk-taking behaviors.

Take Breaks

This is the most simplistic piece of advice, but it may also be the most important. Even day-traders on Wall Street take breaks occasionally. The market never sleeps, eats, or stops. But investors who are smart recognize that this apparent problem is a solution. If the market is in constant motion, then it will still be rolling along while the trader takes a walk, a nap, or a meal.

Troublesome behavior happens when trading interferes with daily activities and normal functioning. To avoid this, even the most hardcore investors should regularly step away from the computer and do something else. This has two distinct benefits.

First, taking a break can provide a fresh perspective on the market and potential avenues for profit. It can interrupt tunnel vision, and a well-placed break lets the trader return to the game with a clear head and lifted spirits.

In a more literal sense, taking breaks can prevent some of the physical and mental effects of trade addiction. By stepping out of the high-stress bubble of cryptocurrency pricing and trade, exchangers are spared of the fatiguing results of spending too much time in front of the computer.

Conclusion: All In Moderation

In summation, it is clear that addiction to trading or monitoring prices can be avoided when traders come to understand the necessity of moderation and awareness while they trade. The effects of addiction to trading parallel those of gambling, and the results on the body and mind can be disastrous. It is imperative that traders avoid becoming addicted to asset trading.

Acknowledging the volatility of the cryptocurrency market, increasing focus on the long-term goals of investment, and taking frequent, much-needed breaks are three ways that any investor, from Wall Street to kitchen laptop, can avoid becoming addicted to the exciting world of trading cryptocurrencies.

Trading assets is a fun way to make extra money; keep it that way!

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