3 life lessons from the flunctuating crypto market
Introduction
All of us crypto enthusiasts always hoped that we have a bull market all the time. We want to always see our crypto assets continue to appreciate and things remain green. However, we can only have or make wishes. The crypto market is so unsteady. You can sleep a poor man and wake up wealthy all because of crypto fluctuations. Unfortunately it always works the other way round if you are not careful with your investments. I discovered that we can draw vital life lessons from how the bull and bear market operates - at least three. Here they are:
(1) Avoid greed: Lots of my crypto friends cry out and tell me there was a time they made big profits and they would have cashed out. Especially during those brief periods of price hike. Take for example Bitcoin. In a day or two and depending on the quantity of bitcoin you hold, sudden rise in market value can see you making huge profits. Sometimes, you want to be greedy and leave it to rise more. Before you know what, its gone. And you count losses. Its a vital lesson for life. We have content with the things we have. We should appreciate the little gains we make in various areas of life. We need to avoid greed as it makes us blind to progress we have made. When we acknowledge and are happy with small progress, it makes us avoid regrets. Greed is a negative trait that destroys us and leaves us in heaps. At the end, we are left with "if only" thoughts. So just as some of my friends lost because they wanted more, in the same way, we loose if we are greedy and do not accept that we are making progress no matter how little it is.
(2) Be patient: Its a fast world we live in. Everybody wants it quickly and fast. Patience is so rare in our society today. You can see that in how people angrily reacts to minor delays or disappointments. Well, the cryptocurrency market can teach us to be patient. Fo example, if you invested in alt coins, you must be patient and wait until such coins appreciate in value. It always takes time. Its the same when you hold Bitcoin in a wallet. Sometimes, the price drops lower than when you bought it. If you sell at that lower rate, then you have lost it. But if you wait for a time when the market improves, then you win. So in life, we want to develop more patience. Is your business struggling, work hard and give it more time. Are you into a bad relationship, some just need time to become fine. Be patient with your kids, spouse, business, boss, life, - everything. I always hear someone say, "the patient dog eats the fatest bone". It might not always be the case, but most times, it is. Patience pays, its rare, but you and I need it now more than ever!!
(3) Dont Quit: Yes, do not give up. Crypto markets can teach you that. There are times when the market is bad over a long period of time. What do you do? Just check our Steemit platform here. When the market is bad, activity drops badly. But When it picks up, you see many people flocking back and the place starts buzzing once more! We can learn never to quit. In your mind, you might find several reasons why you want to quit. But then, people that quit easily are rarely successful. We need t fight to the end. So do not give up easily on your life, your business and other things. Things can and does change. If you quit so easily, you might find yourself jumping from here to there without really making an impact. If you hold on - like the crypto market has thought us - you could meet the light at the end of the tunnel.
Conclusion
I try to analyze life and see what I can learn from different people, events and things. Life itself is a program of education, so learning never ends. Keep on acquiring knowledge and apply it in your life. We can all get better and finally succeed!
There are many old, "ageless" lessons in investment world which can be applied to the crypto area, too. With the difference that by cryptos the volatility is much higher, the movements, bigger.
For example in the technician school (chartists), they say, you should let gains grow higher and cut losses. Therefore, they use automatic stoploss-orders to cash out if prices turn down.
Others say, "“Fearful when others are greedy and greedy when others are fearful.” (Warren Buffet). Buy if all are selling and sell if all others are buying.
I like more the second option. But only if the asset has stable fundamental value. That is very difficult to determinate in case of cryptos.
https://en.wikipedia.org/wiki/Order_(exchange)#Stop_orders
I love the part where you said we should buy when others are selling and sell when others are buying. Makes a lot of sense. Although the unsteady nature of cryptos make it a partifularly tricky business. But we can always learn from it with time
I like these three lessons. They are applicable in many aspects, not only in the crypto sphere or in finance but also in life itself, in all aspects: Patience achieves everything, not giving up is very important to achieve many goals. Many left this platform long before the price of STEEM dropped when they realized that it was not easy to make money just by writing. Even though many of my technical or professional posts were not fully appreciated, I did not give up and that helps us to improve with every attempt we make.
I'm a believer in avoiding greed and being more collaborative and dedicated to helping those in need.
We must have patience with cryptocurrencies, as this technology is constantly evolving. In my country, it has proved to be a decentralized and effective source of income.
And if it works here, it will most likely work elsewhere as well.
Thank you for this teaching moment :D