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The Seven Dangerous Emotions in Cryptocurrency Trading

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While the ancient adage “money does not guarantee happiness” may be questionable for some, there is no doubt about the question that “happiness does not make money”. And beware that the assumption is scientifically proven. If we are happy and we are aware of it, what can happen? For example, we may not pay enough attention to how we spend, save, or invest money. Which can become a problem.

But the speech is not only valid for positive moods: even negative ones, such as greed or fear, can push us to spend too much or too little or to invest with a misplaced euphoria or too cautiously. So, when we feel particularly “stressed” on an emotional level, in a positive or negative sense, it can be an opportunity to take a step back and reflect before investing in a trading platform or with a cryptocurrency exchange. So let’s get to the point: what are the emotions to distance yourself from? Let’s go through them one by one.

1. Happiness distracts and makes you less attentive to details

Recognized statistical surveys confirm that we are more likely to absorb advertisements when we are happy because in those moments we are more receptive to information. Research on this adds that happy people sometimes pay less attention to detail and tend to be more superficial when analyzing a situation. Studies also reveal that stocks such as cryptocurrency assets benefit from an increase in value during periods of good weather, which are known to have favorable effects on mood. This happens because happiness tends to inflate the evaluation of profit possibilities and makes one more inclined to buy. And if many do it, the demand goes up and with it the prices too.

2. Pain is unbearable to the market

On the other hand, the failures of the financial markets were connected to an increase in the states of depression, typical of the winter months. Depression-like sadness can accentuate risk aversion. Pain, like happiness, can prevent us from making the best choices: for example, inducing comfort in a tub of ice cream or a new car or worse in a vaunted cryptocurrency investment when sentiment is compromised. The point then is: Would these products and certain speculative transactions have been considered had we not been so down in the dumps?

3. Fear makes you miss out on opportunities

Fear often leads to risk avoidance, which may sound like a good thing. It can also make us have an avoidant attitude towards what could have proved to be a profit opportunity. Fear more often than not pushes many to refuse a certain investment even when all the available variables suggest that the relationship between risk and potential return is reasonably interesting.

4. Boredom makes you spend to revitalize a situation

Sometimes you feel bored and that in itself is not a bad thing. It becomes so when boredom pushes you to spend or invest just to have a new experience, a so-called “life hit”. However, science says that boredom can stimulate creativity, and therefore why not engage in creative activities to stem the apathetic moments, thus avoiding affecting a securities portfolio or a trading account.

5. Sense of guilt: sometimes we work to reduce it

Warning: spending and trading to alleviate a possible sense of guilt could be costly and end up increasing the feeling of guilt even more because we have spent money on an investment that was not strictly necessary. One way to keep the deleterious effects of guilt in check is to set a spending cap and stay within that budget no matter what. And, where possible, we try to devote more time to our interests and loved ones, rather than money.

6. Envy: that useless effort to keep up with the lifestyle of others

Even if we are not interested in what others do or have, we may still feel the need to spend money trying our luck on the stock market, neglecting smart management of their capital to compete with their image. This behavior may make you feel better in some cases and only temporarily. Envy, however, is known to have no limits and can target not only the neighbors but also the VIPs we follow on social media and the media. With what effects on the wallet… well it’s easy to imagine.

7. Greed: Leads to Buy Things We Don’t Need

Many blame greed for major collapses and major fraud in global financial markets. To counteract it, scholars in the sector very simply recommend focusing on the most significant things in life, which are certainly not material goods or the amazing performance of crypto on virtual markets

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