What is the solution to the fear of cryptocurrencies?

in LeoFinancelast year

The fear of cryptocurrencies is exacerbated as we see Bitcoin fall more and more in price and remain in a prolonged downtrend. When things like this happen, more and more people start jumping ship thinking that if they don't, they will sink.

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Fear is a fierce enemy

When people feel fear in the markets, that fear can sink, bankrupt or harm entire projects, serious projects, because fear is something that spreads rapidly. It turns out that trust spreads very quickly, but the speed of fear is much faster than trust in anything can generate.

In other words, rumors spread at the speed of light in the media, and generate headlines with negative news that can generate justified and unjustified fears in people; so fear is a fierce enemy.

But fear is like a wolf, so if you fight it, if you stand up to it, you can beat it; and do the opposite of what the cowering masses of people do who don't think and don't really know what they're doing in the markets. But if you decide not to fight the wolf, you will end up falling prey to it, that is, you will end up losing great opportunities for wealth and profit in the markets.

How to combat fear in the markets?

But fighting fear in the markets is not as easy as simply wanting it, it requires a conscious effort to be better every day; and basically, it is effectively fought through two very specific qualities: One is knowledge and the other is control of one's own emotions.

For example, if we are afraid that Bitcoin will sink and end up being forgotten, dragging down the rest of the cryptocurrencies along the way, we must acquire knowledge about what Bitcoin is and what technology supports it, what are its strengths and what are their weaknesses, who are their defensors and who are their detractors. That is, technically, we must do a SWOT analysis of Bitcoin (and anything that scares us in life). And when I mean SWOT analysis; I am referring here to Strengths, Opportunities, Weaknesses and Threats.

Because only objective knowledge of the projects and cryptocurrencies will allow us to lose fear and act in the best way in the markets.

Which brings us to the second point, by having a better knowledge of what the projects and cryptocurrencies are that interest us, we will be able to better control our emotions, and through that fact, we will be able to act better accordingly. So that means that the two things that eliminate fear in life and in the financial and crypto markets, are interdependent with each other; as in a kind of symbiotic relationship; because as our knowledge grows, our fear decreases; but at the same time, as our fear decreases, we act better and our knowledge grows.

So let's remember what US President Franklin Delano Roosevelt said, when he said "The only thing we should be afraid of is fear itself." Because in that sentence a great truth is contained in more ways than we can simply imagine or explain.

Facing our fears makes us come into contact with reality

Because it makes us objective, but at the same time, dispassionate; what makes us emotionally disconnect from the results we obtain; And believe it or not, that has a "magical" effect when we are trading the markets.

Because what would you say if I told you that even in the current Bitcoin bear market there are people making a lot of money in the markets and it's not just the whales? Surely many would say that I am crazy, but it is not so.

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There are people who are dedicated to hunting the best moments to buy and sell, even in the moments of ranges in the market and even in the worst bearish moments. And, said people are the ones who make profits in the markets against all odds. But these people are different, they know what they are doing and have overcome their own fears, which allows them to have a different and accurate vision of what they should do in the markets to make a profit.

Which brings us to the questions: Do they know what they are doing because they have overcome their own fears? or... Have they overcome their own fears because they know what they are doing? That is, because the first would imply that you must overcome your own fears so that you know what you are doing, and the second would imply that you must know what you are doing to overcome your own fears.

But, as I explained before, it is a bit of both; because in the markets there will always be uncertainty, and our way of dealing with things (our emotional management) is as important as the level of knowledge that we must have to perform efficiently in the markets.

In summary

Fear of Bitcoin and cryptocurrencies occur for the same reason that fear of anything occurs: Misknowledge that leads to emotional uncontrol. Because the human being is an animal of habit, who likes the predictable, so when the human being cannot foresee events due to ignorance, it falls into such a panic that it leads it to imagine the worst possible scenarios; and at that moment, it is scientifically proven, only the primitive brain of the human being acts, which makes it think of only two possible scenarios: flee or fight.

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But in reality, at all times, and especially in moments of greatest uncertainty, the human being functions better when it uses its rational brain. What happens is that in the face of fear, the natural neurological response is that panic disconnects the rational brain, and the primitive brain remains in control of the individual.

Understanding all this, we will realize that the fear of anything in life (including cryptocurrencies) is controllable, and can even be eliminated.

But being even more emphatic; I say, the fear of Bitcoin and cryptocurrencies in general must be eliminated, and replaced by conscious knowledge of all that they imply as means of payment and as technologies, so that we can obtain wealth through them.

This does not mean, in any case, that we will not be careful when investing or trading in the markets, but that we will take risks (because in the cryptographic and financial markets there are always risks), but in a calculated way. Due the calculated risk is not the same as the uncalculated risk, let's always keep that in mind.

What do you think about this whole topic?

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Have already know this from the start,fear bring a lot of discomfort when trading,to face our fear we must know what we are doing ,like believing in our strategy,even if it’s face goes side ways we must always believe in the strategy we are using

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