Ask Leo: How Do You Handle The Panic And Depression That Comes With A Bear Market?
Well, I'm really not sure if those feelings a thing for me anymore since I now understand how the crypto market could be. A newbie however may panic get really depressed watching their assets dwindle in value and its quite understandable why some of them feel that way.
As a newbie, I felt overwhelmed by a crash in my portfolios value and felt really sad when I had lost money taking some rash decisions like FOMOing, but as time goes on, I really don't react much to drop in prices in my portfolio. I just check out how the cryptos were doing, take note of the ones doing well and the ones not doing so well at the time and then leave. No hard feelings, no panicking . So what has changed?
I believe my first reason for not panicking or feeling depressed is that I've trusted my judgement and choice to invest in the current set of cryptocurrencies I've chosen to invest in. I've done my due research and everything feels right. The market would have its ups and downs but they don't really matter since I have long term goals.
Secondly, I think because I've diversified my assets, I really don't bother about a decrease in value of one crypto in my portfolios. I've taken some measures to reduce the risks involved when investing in cryptos and so I really have no reason to worry. When one dumps, others are pretty stable or doing great (except in cases of a general dip).
Also, I don't entirely depend on the market for earnings so there's really no need to panic. Having some other sources of income kinda reduces the pressure and negative feelings that comes with the bear market.
Lastly, I think after spending some time dealing with cryptos, we get used to its drama. It's like one's wife or child, you can't throw them away, you just have to deal with it both in the good and bad days. Knowing the market isn't just gonna keep going up or keep going down (except in cases of foul play) brings peace of mind to a certain level.