“Why should I see a therapist, I have no problem,” said Akshay Gollelu, 24, a cryptocurrency trader, who “lost everything” trading cryptoassets.
He told indianexpress.com that “he doesn’t sleep sometimes and keeps watching the trading chart” to make a quick profit. Gollellu, however, says crypto addiction “is a normal thing in the community” and refuses to see a therapist because he thinks “it doesn’t need help.”
Like Gollelu, several crypto traders are addicted to trading, which damages their mental health. If you have a friend who is “into crypto” and doesn’t want to “HODL” (slang for holding crypto assets), it is high time to check them out.
In today’s column, we explain how crypto trading has a detrimental effect on mental health and how to fix it before it’s too late.
Why is cryptocurrency so addictive?
The cryptocurrency market, unlike the stock exchange, is open 24 hours a day. Fueled by volatility and uncertainty, users can trade globally, creating a perfect source of dopamine rush, making the crypto market even more addictive.
Access to crypto is now easier than ever. Cryptocurrency trading is extremely simple, all you need is a bank account, a crypto wallet to store your crypto assets, and a mobile device that makes it easy to access and navigate your crypto.
Another major factor that makes crypto addictive is the idea that it is a quick way to earn big profits. Undoubtedly, people have made it big on crypto, but not everyone has.
The common belief in the crypto circle is that “timing is everything”, and with the spread of crypto, traders are always under the illusion that some trick or technical analysis could land them the jackpot at the right time. . This is what makes traders more inclined to take greater risks and interact with the market more frequently.
Notably, cryptocurrency traders do not profit from every trade and suffer losses on every trade. But what they hope is to make a profit even after a series of losses, which drives them to start trading again.
Finally, a common habit of crypto traders is to be obsessed with losing but relatively unemotional about winning. This pushes them to invest more and more time and money to recoup losses.
Are you addicted?
Crypto addiction is real, but how do you know if you are addicted to crypto trading?
“When it comes to the world of crypto, it has been observed that many young people choose to invest in this field over stocks and mutual funds because it is (as they describe it) “easy to understand and follow,” Nida Sheikh, a Pune-based cognitive-behavioral psychologist told indianexpress.com while sharing some red flags everyone should watch out for.
Sheikh believes the volatility in the crypto space gives the distracted mind something to be delighted about and therefore very effectively replaces scrolling social media or playing video games, as it promises “investment growth”.
However, most traders do not pay attention to the risks involved and instead focus on the immediate gratification of the process.
“Repeatedly opening the trading app and checking the current sell prices of the purchased coin is a huge red flag,” she said.
Some other massive red flags to note are:
#Want to invest more in the hope of earning more
#Feeling restless when family members or friends prevent you from checking the crypto app too frequently
#Trying to recover lost money by investing in another piece that might be “trendy”
#Ask others to invest for you when you run out of money
Tips for Overcoming Crypto Addiction
Every crypto trader should focus on learning good crypto basics before investing in digital assets.
A good question to ask yourself is: how many crypto wallets do you have? And how much crypto is stored there? Think about how it would affect your life if the wallet was completely erased.
If you have a single wallet and your assets are stored there, a good idea would be to create multiple wallets and split your crypto between these wallets. So the next time you subsidize your funds, and in a scenario where you lose funds, you would at least have reserve funds available.
For those tackling crypto addiction, what’s important to understand is that no matter what you do, you’re going to miss pumps, and there’s always a better coin or collection. NFT available in the market. Projects are booming everywhere, you have plenty of time to earn profit, and there is no need to rush.
Second, try to learn from your mistakes. Don’t make the same mistake over and over again. Don’t keep investing in coins that promise immediate profits – look for long-term investments, not short-term coins.
Most importantly, be empathetic to the happiness of others. If you see a project going in circles right now, there are hundreds and thousands of people experiencing the same kind of euphoria, be happy for them, it will definitely lighten you up a bit too.
Plus, implement a strategy that matches your lifestyle and personality. Keep track of what time you use a crypto exchange or platform. Don’t keep looking at charts, minute by minute. Play smart, put a notification set for certain price marks, or maybe a stop loss if you’re on an exchange where you can schedule this automatically. Doing this creates a fixed routine and tackles addiction.
If you are new to the crypto space, avoid relying on crypto as a full-time income. Have a secondary source of income and put some of it as an investment.
According to Sheikh, crypto traders should avoid having the trading app on their phone. This will prevent them from frequently checking part statuses. “Log in to your account through a PC or laptop and “do not save the password”. The idea is to make the login process longer and more tedious to avoid logging in repeatedly,” she said.
Get a human touch. Go out with your friends and family and spend time with them. It will make you feel calm amid the crypto volatility storm. “Have a monthly limit on how much you want to invest in crypto and don’t go over it, even if the growth looks tempting. Learn about the impact of global issues on the crypto market by exposing yourself to economic news for up to 15 minutes a day,” she added.
Remember, if you need help, please seek professional help. There is no shame in doing so.
The volatility of crypto combined with the debilitating effects of the Covid-19 pandemic can lead to worsening mental health effects.
The good news is that many people and platforms are now taking mental health seriously. Blockchain technology enables communities to create support groups to de-stigmatize discussions of mental health issues and provide new ways for those around them to cope.