How to survive anxiety when investing in cryptocurrency? Trader gives some tips

The cryptocurrency market has many risks. And not all of them are associated with its volatility or the problems of dubious projects. Much of the risk is directly related to investor behavior. In particular, to managing emotions when making a decision.

For Jared Tendler, trader and consultant, it goes beyond that. Specifically, taking into account a much-used term in the cryptocurrency market that he believes should stop carrying so much weight: FOMO (Fear of Missing Out).

Jared Tendler was in charge of the introduction to the latest edition of newsletter by analyst Scott Melker. In that text, Tendler states. he “hates” the term. But especially its overuse in the cryptocurrency market.The reason? “Many of you think that succumbing is simply part of what it means to be in ‘crypto.’ Moreover, because it is so commonly talked about, it can seem almost semi-cool to fall victim to it,” he argues.

In his view, poor investment decisions in this market are often attributed to FOMO. But this is a mistake, he says, that “prevents actively improving decision making, with costly consequences.”

In the market for cryptocurrencies it is essential to make good decisions, Tendler said. And to do so, it is necessary to understand that it is impossible to “capitalize on every opportunity.”. This is exactly the opposite of FOMO, which is basically the phenomenon of anxiety generated by an investment opportunity that is not taken advantage of.

One does not always know the right time to buy or sell. Even the best investors or traders in the world do not expect this to happen. Hindsight is easy, but forecasting is incredibly difficult..

Jared Tendler, consultant and trader.

What’s behind the FOMO

The analyst assumes that it is essential to understand what FOMO is. He argues that if one is clear about the reason for the fear of missing an opportunity, it will be easier to “identify the hidden emotions that affect us.”

For him, while it is true that many people fear missing out or being late to the next altcoin rising in the market, the real issue is what this “loss” means for each individual.

Think about it for yourself. Losing the opportunity might seem like a defeat, and you hate losing. Or maybe losing would be proof that you are not perfect when you struggle with perfectionism. Maybe you are not happy with your life/work and you saw that great job as the ticket to freedom. Or maybe the only reason you are in this game is to win a ton of money and FOMO is really just the greed that forces you to play.

Jared Tendler, analyst.

The most important key to combat these hidden feelings is to “pay attention.”writes the trader. If you study your behavior and identify what triggers your investment anxiety, “it will allow you to be more aware when you are about to make a bad decision so you can change course.”

Just as Tendler does now, great traders and investors always advise trading with caution, not to be swayed by emotions, and to make fully informed decisions. Above all, understand that you cannot always win in the market because with every price movement there is a winner and a loser.