Guide to Psychological Management in the Late Stage of the Crypto Market Cycle

We seem to be entering the later stages of the crypto market cycle, which means market behavior may become increasingly frantic. The prices of some tokens may see a hundredfold increase, and some people might even claim that holding Bitcoin has become meaningless, while the valuations of some NFT projects may reach unbelievable levels.

For first-time or second-time investors experiencing this cycle, it is easy to be influenced by market sentiment. This article aims to help readers better manage this sentiment and protect their investment returns by avoiding excessive greed.

Mental Health Tips in a Bull Market

1. Avoid checking prices frequently

Setting price alerts is a simple yet effective way to save you a lot of time. As a beginner, you may develop the habit of checking prices in the morning and evening, which indicates that you may already have ideal buy or sell price levels in mind.

After understanding this, you can save at least half an hour each day. You won't check prices while working out, nor will you check them when getting up or before going to bed. Instead, you will set clear buy and sell price ranges.

At the beginning of this crazy time, most people may be more inclined to set buy alerts rather than sell alerts.

2. Focus on research and work

The wealth accumulation of the vast majority of people mainly comes from their own careers. No matter what industry you are in, focusing your energy on your core business is always the top priority.

Although tokens often surge by 100% or even 1000% in the market, that does not mean you should focus all your attention on the crypto market. If you find yourself constantly staring at prices or browsing related social media, be aware that this can affect your normal work and income.

A better approach is to schedule fixed time slots to research new projects, whether you are focusing on DeFi, NFTs, or other areas. It is important to have a clear investment strategy and not to overlook your main source of income.

3. Avoid discussing encryption currencies with outsiders.

The crypto industry has developed for many years, and the basic knowledge is already well-known. Newcomers entering this field may not understand the basic concepts, and discussing with them may affect your mental health.

You might as well respond simply: "I don't know much about this area, I only hold a small amount of Bitcoin." This can save you a lot of time and effort.

Now is no longer the best time to popularize encryption knowledge. If someone has missed this bull market, it may take them longer to build a meaningful investment portfolio. Therefore, there is no need to explain the complex concepts of cryptocurrency to those who are not in the know.

4. Hold "low-risk" assets

In a bull market, your net asset value may grow rapidly. As you approach your set goals, you may consider how to further invest these gains. Without a clear plan, you might miss good opportunities by continuing to hold.

We recommend that most people invest a portion of their profits in their primary residence. Some may also choose to invest in stocks. The specific strategy depends on the individual's investment portfolio structure.

It is important to clarify the purpose of the funds. If it is only to see the account balance increase, it is likely to suffer losses during market adjustments. Specific purposes should be set for the funds.

5. Do not neglect health and personal life.

While paying attention to the market, do not neglect your physical and mental health and personal life. We recommend ensuring at least 45 minutes of exercise time every day.

In addition, it is important to maintain a normal social life. This varies from person to person; it may involve going out for entertainment on weekends or spending time with family. Even during busy times, it's essential to strive for a balance in life.

Summary

No matter what your financial goals are, the above advice applies. You need to establish a basic system to prevent yourself from falling into market frenzy. This advice may seem simple, but it can be quite challenging to implement.

Set specific price alerts for the assets you are following. Continue to focus on your main sources of income while scheduling fixed times to research new investment opportunities.

Remember, the ultimate goal of investing is to improve the quality of life. Be clear about your specific financial goals and do not be confused by the numbers in your account balance.

Do not sacrifice your health or personal life for potential extra gains. Maintaining balance is crucial for long-term success.

The Path to Success in the Market

Rule 1: Avoid pursuing integer goals

Set non-integer financial targets. The market often experiences significant pullbacks when approaching integer targets.

Rule 2: Stay low-key

Do not disclose your true wealth status to others. Understating your assets moderately may be more beneficial for long-term wealth accumulation.

Rule 3: Be happy for others' success

Avoid feelings of jealousy. Sincerely be happy for others' investment successes; this positive attitude may bring you more opportunities.

Rule 4: Beware of self-inflation

When the people around you start to recognize your investment acumen, it may mean that the market is approaching its peak. At this point, it might be wise to consider moderately reducing your positions.

Following these principles helps to maintain rationality in a volatile market and achieve long-term investment success.