From Panic to Profit: Emotional Control in Crypto

Recently, there has been increased entry into the world of crypto-assets among many citizens in the world, and Nigerians belong to this group. It appears to be an excellent means to gain profit in the shortest time possible. Others hear stories of how somebody purchased a coin and sold it after two weeks at a price of 1/2 a million 5,000 naira. This causes people to spring toward it at the thought of hope and excitement. However, it is not sugar all the time with crypto. Sometimes the prices depreciate disastrously and individuals end up curtailing much of their cash. Fear comes in during such periods. Mankind panics, takes wrong actions and repents afterwards. This is why in crypto emotions can be of great importance. Throughout this write-up, I would like to elaborate on the impact fear and greed have on our crypto decision-making and how to take steps towards getting a profit rather than definitely panicking.

To begin with, we have to know what cryptocurrency is. Cryptocurrency is an online form of money not under the government. It is the most popular, Bitcoin. There are other ones such as Ethereum, Solana and so on. These coins are bought and sold with the aim of making profits and people trade in these coins just as they do trade in forex or stocks. However, as opposed to other markets, crypto is both very quick and very dangerous. The price is not simply able to shift upwards very easily and also downwards. That is why a lot of people easily panic. They are in the red (losses) and they now begin to operate through fear.

I would like to take a typical example. As an example, suppose an individual purchases a coin at $100. A few days on the trade is at $70. The individual becomes frightened and sells off to cut loss. The following week, the coin goes to $130. This makes the individual feel bad and angry towards oneself. Panicked trading like this. Another example: a person purchases a coin since he/she read on Twitter that it is about to moon. They did not make any investigations. They simply did what they were hyped up to do. This makes them greedy and they do not sell, instead, their coin pumps. They say, I will wait till it reaches $500. Then all at once the coin breaks. It was also the loss of all the profit now. That is what comes out of greed ruling you.

Fear and greed are the two worst enemies of cryptocurrency traders and investors. Due to them, many people lose money. Others even say crypto is a scam, anyway, not the coin. That is how human beings act. Crypto rewards those that are self-controlled, patient, and wise. To get out of panic and into profit you need to prevail in the war of emotions first in your mind.

A plan is one way to learn how to gain emotional control in crypto. Numerous Nigerians get to the market without a strategy. They only want to earn money in a hurry. However a plan will make you understand when to enter, when to take profit and when to get out. Examples are that when I purchase one coin and the price increases to 2000 why I can say, when it reaches the 1500 point; I am going to sell the half and retain the other. Such a plan will assist you in remaining focused even in situations where the market is volatile. It, also eliminates guessing and emotionality.

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It is also important to be familiar with what kind of trader you are. Do you trade short term or are you an investor? A long term investor is one that would purchase and hold months or years at a time. Small drops on prices do not matter to them. They see the larger picture. A short term trader comes in and out within a short time, perhaps days or weeks. All these kinds require various mentalities. As a long-term investor, you ought not to panic whenever the prices decrease knowing that in future, the market is set to rise again. However, when you are merely a short-term trader, you are always required to monitor the charts as well as to place stop-loss and take-profit orders. By knowing your type, you will be able to be in control emotionally.

Lack of knowledge is also one of the things that causes panic. I find that many get told how crypto is good and they run without learning. They are unaware of market cycles, impossible to read even charts leave aside even being unable to comprehend the coin they are purchasing. When the price is going down they become scared since they have no clue what is happening. However, we will have confidence once we have knowledge. You will understand the crypto is never linear. We have bulls (prices increase) and we have bears (prices decline). Such knowledge keeps you cool and you are ready to face both seasons.

I recall when Bitcoin dropped to 30,000 dollars, becoming 60, 000 dollars. A lot panicked and sold. Others also quit the market altogether. However, people who knew that this was also included in the cycle bought more Bitcoin in the dip. Several months afterwards, Bitcoin rose again to more than 60,000 dollars. People who held/purchased large money made massive profit. The separation occurred to be emotional control. The same market, two outcome-d Different because of emotion.

So, time to speak of FOMO. FOMO is the abbreviation of Fear of Missing Out. This is another feeling that causes individuals to coin too late. You notice a fast-pumping coin, and you quickly start to purchase it on the fear that you would miss out. However most of the time, once you get in on top, the price begins dropping. You lose money then. This process occurs on a continuous basis. So that you can reign in this feeling remember at all times, crypto opportunities will never cease. You will not have to do pump running. Rather than have FOMO and lose money, it is better to miss an opportunity. Be patient. Learn how good entry points can be identified. This is timing.

Risk management is another key to control emotions. Never put in money which you cannot lose. As long as you invest your rent or your school fees in crypto, emotions will take over. Each little taste will cause you to shake. However, you will be at peace should you operate only with extra money. When the price goes down, you will not panic though, knowing that you are still safe in real life. That is why all wise investors warn those new at it, and they state, “Never invest what you cannot lose.” The recommendation is not meant to be funny, it is what spares a lot of people the stress.

Also, get the know-how on how to limit profits. A lot of individuals come in crypto, price increases and they are not willing to sell due to the desire to gain more. That’s greed. When in gain, a part of the profit is always desirable. There is no problem in letting some coins go and still sell off part of it. In that case, by the time the market does crash you will have already made some profit. This practice of cutting down on profits will keep you relaxed emotionally. When things change, you will not feel too much pressure.

I would also like to add the problem of listening to too many people at risk. In crypto everyone has an opinion. On Telegram and YouTube and X (Twitter) you will find people yelling, This coin is going to the moon! Some will tell you to buy now! Don’t miss it!” However, not every person understands what he/she is saying. By listening to all these voices, you would become confused and emotional. Rather read 1 or 2 credible sources, and stick to them. What is more important is DYOR (do your own research). You should know why you purchased a coin, and thus you will not panic so easily. However when its price sheds, and you did so because somebody told you, you will become angry with the one that told you and you will still lose your money.

Crypto is something that has cropped up on a large number of Nigerian youths nowadays. This is one means of coming out of poverty and to overcome the poor naira. This fear must not make us less sensible, however. Crypto is not a quick-riches plan. Yes, some are getting cash. There are those losing on the sly, too, however. Wisdom and restraint of emotion is the difference. In order to earn hard cash in this game, one of the best things which should be learnt is to keep calm. Not like a pump or dump, emotions should not be the determinants. Knowledge and strategy is your guide.

And have breaks. You should not be stared at the charts all the time. It is capable of producing anxiety. There are individuals, who fail to sleep due to crypto. That is not healthy. Your life has to take a balance. Install alarms, follow your strategy and sleep. Even members of the exchanges rest. In case you become too emotional, go off the screen and take a breath.

Lastly, take small wins. Be glad even with 5, 000 in profit. Never say I would have earned ₦50,000. Such is the beginning of greed. Cherish any improvement however slight. Gradually, you will turn into a better trader. And you will begin to be able to see profit arise out of your emotions the same as you train it, not luck, but wisdom.

Crypto is not about money only. It has got something to do with attitude too. Let your mind also be strong otherwise the market will manipulate you with emotions and you will constantly be losing. However, when you are taught to master fear, oppose greed and keep to your strategy, you will start making the transition jumpy to profitable. Crypto can be an excellent opportunity in Nigeria today whereby most of the population is facing financial challenges. It will, however, only work in favour of emotionally strong individuals. Don’t rush. Don’t panic. Being greedy is a bad idea. Be cool, be smart and be on the right side of the ledger.