This question is more for the ladies, than the men:
Have you ever been hit on by a desperate person?
How'd they fare?
Did you say,
"Ooooh, desperation! Perfect!! What a catch!!!"
Desperation is not a good bargaining position.
Is it a good investment condition?
I will give you a hint:
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Fuck no.
But, the thing with crypto is, it is pretty much all inclusive, so anyone can give it a go with a few dollars - but should they? Yeah, a few dollars isn't much for most people and they should, but for the most desperate, are they going to be improving their lives or, making them worse when they are making decisions from a stress position? Not only that, from a frame of desperation, not only are bad decisions more likely, but bad outcomes have a far greater impact, as it isn't money they can "lose comfortably" and not worry too much about it.
As they say, don't invest what you can't afford to lose, but I somewhat disagree with this, as there is definitely mindset and emotional development that takes place when there is skin in the game. However, the caveat is that if there is "so much skin" that failure is not an option, the amount of stress it creates is likely going to be difficult to contend with and since this is crypto, the swings are going to be painful.
You know those days where the market drops 40%?
How do you feel?
For me, I get up, brush my teeth, go to work and perform my day-to-day, unconcerned with the loss of a couple years salary. The reason is, I don't need it - at least not right now at this moment, which means all losses are technical. The only time a loss is made is when a hold becomes a sold for less than it was bought for. However, you will find that many people who are successful in crypto, held well into the red, only to two years later be incredibly in the black.
But, it doesn't last, does it?
Prices that is.
Prices from the highs will always regress to the mean and often, well below the mean, so it doesn't even matter if a person is up in value in regard to what the initial spend was, a new ATH becomes the new baseline of value, so if it was bought for 10, pumped to 100 and drops back to 50 - it is felt as a 50 loss, not a 500% gain.
I know people who have got into crypto and with "relatively" small amounts, are unable to sleep because the market is pumping or, crashing - they are so affected by the swings that they are unable to function well doing their daily tasks and, they make mistakes, pushed to sell at bottoms, sell too early, or hold out of fear.
Fear is not a good bargaining position either, but feigning confidence might fool others, but not yourself. This is why I believe that while anyone can invest into crypto, I wish more people would do the risk assessment before, and this isn't on a project tea, usecase or fundamentals - it is on themselves.
The biggest investment risk factor is us.
If we are unable to control our emotions, if we want something too much, if we are needy, time-sensitive, fearful, stressed and desperate for an outcome, we are likely in for disappointment and a world of pain.
It is Murphy's Law.
There are plenty of resources that look at investor mindset, but I wonder how many people take it to heart and actually evaluate if they are the kind of person who is able to live that life. I suspect, not too many, which is why there is so much cheerleading on the way up, and so much whining on the way down. The shilling stops and all that talk of "looking long" is lost as price crashes and people fear they will lose it all, so dump what they hold, believing it is better to get something, than risk being left with nothing.
How I see it is, while most of us can invest, it doesn't mean we should invest - at least not before we have reflected on whether we are willing to take the responsibility for our decisions and, wear the consequences. Sometimes those consequences will leave us feeling we are trapped in a nightmare - sometimes though it
Out performs wildest dreams.
Just remember, it can go either way - so don't go in blind, expecting the path to be straight and smooth. Otherwise when it gets rough, you may just get lost in the crypto wilderness and start to panic.
Desperate is not a good look.
But it is an easy target.
Taraz
[ Gen1: Hive ]
