If you have tried your hand at crypto investment, you know how consuming it can be. Crypto investing can be consuming, and bad days can cause depression and anxiety. But there are ways to protect your mental health in crypto

With your hard-earned money at stake, you find yourself checking crypto prices more frequently than you check your Facebook notifications, and you realize that your life has become reduced to numbers, charts, and trend lines. 

Another thing with the crypto market is that there are no breaks. Sure, the stock market might be in frenzy from 9:30 AM to 4 PM five days a week but, once it closes for the day or the weekend, the market does provide the chance to wind down and relax. Crypto, meanwhile, is always on. What if a 15x profit opportunity passes you by as you are fast asleep at 3 AM?

What if your Sunday tee time prevents you from cutting your losses? Hence, with crypto, it is far harder to take your eyes off the screen. 

So, how do you prevent crypto from engulfing your life and how do you protect your mental health in crypto? The below tips might help. 

How to Avoid Cryptocurrency Depression

1. Establish Hours for Trading Crypto

Just because the crypto market is working 24/7 does not mean that you need to follow suit. It is best to see crypto investment as a business or a 9-to-5 job. 

It is okay to dedicate your energies to crypto from the morning until the evening but, once the sun starts to set, you need to log out of your trading apps and go about life like a normal person – regardless of how the market and your investments might be performing. 

2. Stick to Your Cryptocurrency Trading Plan

It is important to do your homework before making a trade. For instance, determine the fundamental reason that you are interested in that particular trade, how much do you want to make on that trade, and how much are you willing to lose. Once you have a fair idea about your potential profits and losses, you are unlikelier to make impulsive decisions. 

Instead of intently watching the chart and praying that it goes up or down, it is better to plan your trade in advance, establish the points of entry and exit, and then forget about how the chart is behaving and start going about your regular life. One of the worst mistakes that traders do is allowing their emotions to cloud their judgment, and changing decisions halfway through a trade. 

3. View Your Crypto Losses as Learning Opportunities

man holding head in hand depitcing mental health in crypto

As long as you are willing to learn, every loss comes with a unique lesson. Instead of letting these losses incite anger, frustration, despair, or fear, treat them as learning opportunities. Analyze the question and try to determine the reason that you took that loss.

If you entered the trade with a decent edge and were simply unlucky, there is not much you can do but keep rolling with it – there will be days when Lady Luck will not be by your side, but you cannot let that affect your long-term investment goals. 

The second thing to wonder is if the loss resulted from a wrong decision. If you find that that is the case, consider the factors or patterns that led you to make that incorrect call. Was the logic itself shaky, or were your assumptions unrealistic? A cold and rational analysis is one of the best antidotes to flaming hot emotions. 

4. Develop Other Priorities Outside of Crypto

image of pineapple on a beach

In other words, get a life. Having multiple priorities establishes balance, and can help curb your obsession with crypto. Also, when you become a slave to your mobile or computer screens, your friends and family become casualties. 

Make sure that you take regular breaks, and literally step away from your trading apps and crypto social media platforms. This, too, is important to maintain sanity and balance. Even though you might have started believing otherwise, the world does not start and end within the confines of your screen. 

5. Compartmentalize Crypto Activities

This is somewhat related to the previous point but is less about having other priorities and more about effectively dividing your time among those priorities. Many crypto traders, especially those who have just started off, obsess about the prices, positions, and opportunities throughout the day, regardless of what they are doing. 

It is important to curb this obsession by dividing your time between different activities and then dedicating your complete focus to whatever you are supposed to do during a particular time. For instance, if you have dedicated the 5:30 PM to 6:30 PM hour for working out, it is important that you laser your attention on exercising, and not take breaks to take a quick peek at how your assets are performing. 

Conversely, when you are in trading mode, you should dedicate your full attention to it. 

Without identifying these priorities and compartmentalizing your time, your focus will be all over the place at all times, and you will end up achieving a lot less in every department than you could have with a hundred per cent focus and attention

6. Minimize Financial Exposure To Cryptocurrency

Digital price chart

Trading induces a great deal more anxiety when your livelihood depends on it. With so much at stake, it is hard to stay rational and far easier to let your heart rule your mind. You find yourself wanting to capitalize on every potential gain, and get out at the first sign of a price dip. 

The solution to this is to take the burden off by creating multiple streams of income. It sure helps to remain sane and calm when you are not under pressure to close each trading day with a minimum profit of $1,000. 

Final Tip To Help Manage Your Mental Health in Crypto

To sum up, it is important to remember that one of the main reasons behind putting your money to work is to have more time to yourself. If crypto is dominating your life, keeping you from doing other things, and damaging your mental health, you are losing the game even when you are winning.  

To learn more about trading and mental health, please feel free to check out some of the other blogs on our website.