How To Make Cryptocurrency Investments and Not Get Addicted?
How To Make Cryptocurrency Investments and Not Get Addicted?
The virtual currency system has taken over the world of investment since its origin in 2009. It has only grown in popularity ever since. Among thousands of varieties, Bitcoin was the first to gain rapid popularity. For starters, this currency system works without any middleman and the transaction is only limited between the two heads along the line. Although there is a transaction fee charged, this kind of transaction is more likely to never experience fraudulent activities. The fact about cryptocurrencies is that it is not backed up by any assets hence requires extensive knowledge before diving into investment. Currently, the valuation of cryptocurrencies has spiked from 175 billion pounds to more than 1.75 trillion pounds. The worldwide statistical analysis has proven beyond doubt that there are over 300 million crypto users.
According to the information from the Financial Conduct Authority, over 1 trillion pounds is acquired by British citizens alone. The hype about cryptocurrency has only risen due to the fact that some people want to deal more when they experience a loss. This has given rise to a worldwide obsession often leading to harmful addiction. This calls for a discussion about responsible investment into Cryptocurrencies which are absolutely essential at this point.
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About Cryptocurrency Addiction
Any unhinged behavior regarding cryptocurrency can be associated with major addiction issues leading to degradation of life quality. This is often called cryptocurrency addiction where people are obsessively hooked on the numbers going up and down in the crypto market. This can be similar to gambling addiction or even drug abuse disrupting normal functioning social life and can result in altered behavior. In expert opinion, addiction of any kind is a clinical disorder and requires serious diagnosis. People suffering from cryptocurrency addiction might require counseling and in recent years, as much as people are invested in this niche, readers are coming forward seeking help for their extreme adherence to the crypto market. Apart from facing great losses, modern-day traders are experiencing an all-time low when it comes to mental health. The fast-paced generation is driven mostly by gluttony and people often overlook the quality of their lives due to their obsession with making more money. This is the reason why the Bitcoin market cap has fetched over 1 trillion U.S. dollars by February 2021 which constitutes almost 66% of the entire cryptocurrency market. Similarly, players using UK casinos not on GamStop should remain vigilant about their gambling habits, especially when cryptocurrency deposits blur the line between investing and gambling.
Why is Cryptocurrency Investment Addictive
Despite market crashes that take place repeatedly, it simultaneously experiences an all-time high which drives people into investing, falling prey to the gluttonous tendencies human beings are naturally prone to. These days youngsters are driven by the fear of missing out on easy gains. These huge swings that take place in a periodic manner not only attract the eyes of long-term investors but also provide a massive dopamine surge in the brains of traders filling them up with sudden euphoria. This leads them into addiction in spite of knowing about the possible volatile nature of cryptocurrencies.
Signs to look for in a Cryptocurrency Addict
Looking at the graph we can check out that the same Bitcoin which was carrying an evaluation of 7 pence in October 2010, is now worth 36900 pounds approximately. In April 2021 Dogecoin experienced a boom for which the price shot up to 400% which was immediately followed by a crash down. This proves beyond doubt the volatility of the currency in the risk people are willing to take when it comes to fetching big profits focusing particularly on the all-time highs. The user index in 2021 displays that 97% of the market traders are confident about the future of digital currency.
- The basic problems of traders include lack of sleep or even basic personal negligence for not only oneself but also for the people around. The focus particularly revolves around the market figures, which makes it impossible for them to concentrate on other aspects of life.
- As they say, the market does not sleep. Wherever there is an Internet connection there is a chance to chase big numbers. Since it is a worldwide phenomenon, there is no time limit and goes around the clock. The brain after a certain time gets into the mode of chasing the micro wins providing an instant boost of dopamine which often the body gets addicted to.
- When the amount of transactions is hard to keep track of, it has to be understood that the social life of a person is at stake which is ultimately necessary.
- Trying to recover from the losses by including more money into the investment is also another huge factor to differentiate interest from addiction when it comes to cryptocurrency practices. It almost resembles gambling addiction the way our minds work in the crypto business.
- Often taking up loans or selling assets to fund crypto trading which is adversely affecting the financial stability.
How to Avoid being a Crypto Addict
Oftentimes it gets hard to predict which is what hence the line between addiction and interest gets thinner. This is where the risk-taking appetite comes to play as it is often said in any trading business that one should never invest what he cannot lose. Another question that can arise out of it is if the person is about to get majorly affected. No wonder why between 2012 and 2020 Bitcoin experienced a surge of 193 639.36%.
- Limiting the amount invested in cryptocurrencies can help reap benefits from trading without facing any major issues like obsession or self negligence.
- Limiting the time spent in a day on trading cryptocurrency can result in controlling the compulsive attachment to monitoring the market rises and falls.
- Bringing variation to the portfolio and limiting the investment into crypto from 5% to 10% of the entirety. Instead, one can invest in a variety of niche categories.
- Not viewing cryptocurrency trading as the main source of income generation can also result in controlling overindulgence.
- Distraction through taking up new hobbies can also be effective in some cases where the levels of addiction are drastic.
Investing in Cryptocurrencies with Responsibility
Needless to say, if someone is facing adversities when it comes to investing in cryptocurrencies, he should completely cut down on their spending habits on cryptocurrencies or at least limit the expenses to a minimal amount. Cryptocurrencies were initially invented as a mode of transaction but with time people have chosen them as an investment option.
People dealing with cryptocurrency addiction can also opt for Cognitive Behavioural Therapy which time and time again has proved itself effective among the treatment. Moreover, Gamcare, the Gordon Moody Association as well as other institutions are there to provide free support to the people. Recognizing the problems and taking the first step is the most essential part of overcoming cryptocurrency addiction.
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