“We’re All Crypto People Now.”
That was the headline of a recent article from the Times. And in many ways, it’s true. Even if you’re not investing (yet), this once-niche world has invaded the mainstream and everyone is talking about it.
And maybe you’re not just talking about it. Perhaps you want in on the action, too.
Hold up . . . there’s a lot to consider before you start investing.
Ask yourself, are you ready to take on everything that comes with buying, selling, and trading cryptocurrencies?
And I’m not just talking about the financial side of things (though as someone who isn’t your financial advisor, I’d suggest consulting with one first).
No, I’m referring to the emotional roller coaster that comes with entering something new, like investing or starting an online business.
Are you the type that embraces the unknown? Or are you a more risk-averse, play-it-safe, and watch-from-the-sidelines type?
Like any new venture, you’ve got to make sure your personality is the right fit. Unfortunately, many decisions are made under the influence of emotions that have cost investors dearly.
So how do you avoid emotional decision-making?
Well, first you’ve got to recognize it.
Consider these three emotions investors experience when navigating the changing tides of financial markets.
1. Fear is a common emotion, especially for those just starting.
Even a decade later, the 2008 financial crisis left many hesitant about buying stocks. According to a Gallup Poll, 52 percent of adults under 35 say they owned stocks leading up to the crash. By 2017 and 2018, only 37 percent were investing.
2. Greed is the other big emotion when it comes to investing.
During the GameStop stock-buying frenzy, some investors took out loans just to buy more stocks. Then the stock tanked.
We want to make money, and we want to make it quick. Unfortunately, when it comes to investing this can push you to ignore long-term discipline investment plans and opt for the latest get-rich-quick stock out there.
3. Impatience can drive investors to sell sound investments because they’re tired of waiting for results, only for them to surge in price soon after.
Investors who bought AMC stock in anticipation of the economy opening up but sold their stocks early in 2021 during a quick rise are probably feeling a tinge of regret seeing the surge in price.
Controlling your emotions is a superpower
These emotions are the same ones you’ll find yourself wrestling with when you’re building an online business. So get comfortable with each one, learn how to control them, and use them to your advantage (versus the other way around).
So if you’re thinking about jumping into investing in crypto – get to know your emotions first and learn how to check them at the door.
To Your Success, Paul Hanson
P.S. On the other side of the coin, consider joining our zoom meetings for Legacy Builder's Group where we are beginning a series to help educate people on gold and silver and why the rich, governments, and nations buy and hold this commodity. Do they know something you don't? Watch for my email invitations - the next zoom call is this Tuesday.
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