STOP CHECKING DELTA / BLOCKFOLIO!

Psychology is a very important part of investing. As an investor, you have to be in control of your emotions in order to make good investment decisions. When starting out investing in crypto, it's very tempting to download an app like Delta or Blockfolio to keep track of your crypto holdings. However, many investors make the mistake of checking their holdings too often.

Example: LongcatCoin
Let's look at hypothetical situation to better explain what I mean. Let's say you have invested 1.000 USD in LongcatCoin. Like many cryptocurrencies, LongcatCoin is extremely volatile. When you bought your LongcatCoins, they were trading at 1 USD each. You register the transaction in your portfolio app of choice.

Throughout the next 24 hours LongcatCoin increases in price to 10 USD, then drops to 2 USD. Now, ask yourself:

• Did you gain 100% / 1.000 USD?
• Did you lose 80% / 8.000 USD?

The person who constantly checks his portfolio will most likely feel like he lost 80% since he saw his portfolio value at 10.000 USD at some point. He will feel terrible since he missed the opportunity to sell at 10 USD each. The person who checked after 24 hours and saw his investment doubled in 1 day will feel great, even though the coin was trading higher throughout the day. Additionally, the person who checks once a day gets to enjoy his day while the other wastes his time constantly checking an app.

They key takeaway here is that, especially if your strategy in crypto is to HODL, enjoy your life and stop checking your portfolio app! If your strategy is to HODL, price actions should be pretty much irrelevant to you. By checking your portfolio app too often, you will set yourself up for disappointment.

How often do you check your portfolio value?
Leave a comment and let me know!