Taking Profit In Crypto: What Determines The Psychological Maturity?
It's surprising and amazing at the same time how the crypto market cycles carry some psychological significance in the lives of people. I was speaking with a friend some days ago and he bemoaned why we didn't take maximum profit in the last bull market and be done with the emotional ride that's currently taking place with crypto, at least for now.
But then I reassured him that we didn't make a mistake, since we're inevitably building for the long haul, we need to slowly determine what actions would be right and the ones that might be wrong as well as the ones that might carry irredeemable consequences. Sadness or joy can take away mental preparedness.
The anxiety of FUD or FOMO can make people make irreparable mistakes,
......distractions can do the same as well Although we cannot take away emotional context from crypto, it's important to isolate the necessary emotions from the unnecessary ones especially when the events tend to vary. For example, anxiety is a dangerous emotion in the bear market.
The fear of missing out on more profits is an even more dangerous emotion in the bull market, however, without the emotional endearment we have towards crypto it's going to be virtually difficult to metamorphosize from one market cycle to another, these sentiments are what keeps us going when we hit bumps on the road.
The transition might be gruesome
Living through the process is drilling
Yet....
So it's the whole beautiful process of success and failure that comes together to form seasoned project believers, owners, advocates, shillers, and even believers. With the right crypto project, people go from being pure opportunists to becoming builders, people go from wanting only profits to building things that span for a very long time.
The process of building takes decisions and foresight, and this is why crypto often shapes the intentions of people, rewires their faculty, and changes how they view the concept or meaning of wealth.
A project that's done More than any in the crypto space is hive, now this isn't being too cocky or too pumped up about hive, sometimes I just begin to imagine how something innate could create even bigger real-time influence in the lives of people who have chosen to truthfully interact or vest on it one way or another.
But, this is choosing to be adrift on a narrative
Anything negative might dent this belief
Inasmuch as people deem crypto to be digital wealth and they're not wrong, the fact that it can build real-life wealth where real-life opportunities couldn't make it even worth more than what we know. It's a translational and flexible wealth that could change one's financial narratives, especially where real-world opportunity fails.
This is why people who make hasty decisions concerning crypto have come to fail thus far, at least in like 10 years. Unarguably, people who have chosen long-term haven't come to regret it with Crypto. I know that the FTX and Luna's" notorious influence on crypto might rewire this a little, but I still believe, it'll only take time to see if building for the long term is the right thing to do with crypto.
I wouldn't lie, the experience can be exhausting,
When expectations takes different turns
sometimes we begin to doubt the very fabrics of our passion for this beautiful technology, bad players make it seem like crypto is plagued, and powerful entities are beginning to tilt the technology, bringing in centralized mindsets to tweak the system for their selfish purposes but we all know that the core of crypto is exceptionally meant to be life-changing, mindbending and meant to exonerate us from the centralized financial systems we're used to.
Crypto isn't meant to be Ponzi, I love the fact that concepts like DEFI came into place because this means replicating every centralized economic and financial setting in a digital format in other to create more use cases for Crypto, but the fact that the centralized entities have bad players means that crypto wouldn't be exempted from these bad players.
People like Do Kwon and SBF will forever be the villains' tale in Crypto history,
this is because they've managed to shake the core and created external plausibility of scrutiny and control, but then, a lot of us believe this is still and bump in the road rather than beating ourselves up that we didn't take profits we should in the last bull market. Believe me, if people knew that Kwon and SBF's actions were going to be detrimental to crypto sometime back, they would have crushed them from under before anything happens
But the gift Of Omnisciency Isn't A Thing In Crypto
So while it feels logical for people to blame themselves for not taking enough profit that could have covered them beyond the mess that's currently going on, I think it's absolutely important to understand we all expected the cycle to continue, but alas, we've been hit by premeditated bullets In these past few months.
In fact, so many people are seriously affected by these recent occurrences it even affects their lives in real-time and this is because of how the chances of them building their goals seem to have reduced by a sizeable margin, however, in my situation, I feel last year's bull market, I wasn't mentally prepared to take profits, but I think before we have another bull market, I'll be ready to make decisions, as for now, we'll keep building and accumulating and waiting for the tide to turn.
Interested in some more of my works?
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The Consequences Of Being Overly Assumptive About Money
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Free Money: What Will You Do With $216k Worth Of Crypto In Your Wallet? (2)
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Although most people depict the current happenings in the crypto space as downfall but to me, it's rather a sort of clean up to teach newbies like me that, the unexpected always happen in the crypto space I've learnt so far to always take profit if not someone else will take it😄.
You're definitely right, it's a cleanup, but I think a lot of people are still panic selling. I know we'll recover, the low is almost there and just a short way to recovery.
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Taking profit is very important because any business you do and you not taking profit does now make any sense, little profit I took in the last bull run go a long way
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Yeah even me too, I took some profit in the last bull run and it actually went a long way for me as well. I think preparing well for the next one matters a lot.
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If you don’t take profits someone will take yours
This is true, sadly some events have occured and I lost all the profits
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I only invested in crypto recently and do not know how to perfectly predict the market. The bear made me feel all was lost but I know the bull is coming.
The crypto market is generally unpredictable, unless you decide to be a trader and begin to study the charts and permutate. If not, it's a massive challenge to get ones prediction spot on.
True .
I think purely based on experience in this bear market, many people will become wiser and make better decisions when the next bull market arrives. From now till that time, it's an opportunity to build more XP while also stacking up on our crypto assets.
I think the people who survives this bear market would have learnt a valuable lessons, I think the next bear market wouldn't be as bad as this. We keep learning with each Market cycle
Personally, I had no reason for taking profit from the last bull market since my goal focused was on building. Things have changed now recently with my source of income now mainly from Hive, I hope that changes soon. So it does make sense to be prepared for profit taking from the next bull.
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Well I had no major reason either. Although I knew I was going to take profit sooner than later. But you know the bull and bear market have seperate minds of their own, I'm hoping we get to see another bull in the space of 14 months.
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Nobody knows when the markets will turn around and I definitely plan on taking some profits the next time around. From what I see, I think the best anyone can do now is to learn from the mistakes and take more profits next time.
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That's it, the uncertainty is always there, I guess we can only learn to improve on our actions in the next bull market, take profit and continue the cycle.
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You have said well bro, the fact that some just invest in crypto for a fast earning process makes them feel bad when ever there is any fault but crypto itself is a trainer if one isn't careful enough with it.. happy new year in advance bro
We should master multisignature for all chains we care about, and then use multisignature accounts for custody accounts where the owner is not the custodians. This should be the new market standard.
Other ways to avoid having an exchange run away with your coins: