Recently, there has been increased entry into the world of crypto-assets among many citizens in the world, and Nigerians belong to this group. It appears to be an excellent means to gain profit in the shortest time possible. Others hear stories of how somebody purchased a coin and sold it after two weeks at a price of 1/2 a million 5,000 naira. This causes people to spring toward it at the thought of hope and excitement. However, it is not sugar all the time with crypto. Sometimes the prices depreciate disastrously and individuals end up curtailing much of their cash. Fear comes in during such periods. Mankind panics, takes wrong actions and repents afterwards. This is why in crypto emotions can be of great importance. Throughout this write-up, I would like to elaborate on the impact fear and greed have on our crypto decision-making and how to take steps towards getting a profit rather than definitely panicking.
To begin with, we have to know what cryptocurrency is. Cryptocurrency is an online form of money not under the government. It is the most popular, Bitcoin. There are other ones such as Ethereum, Solana and so on. These coins are bought and sold with the aim of making profits and people trade in these coins just as they do trade in forex or stocks. However, as opposed to other markets, crypto is both very quick and very dangerous. The price is not simply able to shift upwards very easily and also downwards. That is why a lot of people easily panic. They are in the red (losses) and they now begin to operate through fear.
I would like to take a typical example. As an example, suppose an individual purchases a coin at $100. A few days on the trade is at $70. The individual becomes frightened and sells off to cut loss. The following week, the coin goes to $130. This makes the individual feel bad and angry towards oneself. Panicked trading like this. Another example: a person purchases a coin since he/she read on Twitter that it is about to moon. They did not make any investigations. They simply did what they were hyped up to do. This makes them greedy and they do not sell, instead, their coin pumps. They say, I will wait till it reaches $500. Then all at once the coin breaks. It was also the loss of all the profit now. That is what comes out of greed ruling you.
Fear and greed are the two worst enemies of cryptocurrency traders and investors. Due to them, many people lose money. Others even say crypto is a scam, anyway, not the coin. That is how human beings act. Crypto rewards those that are self-controlled, patient, and wise. To get out of panic and into profit you need to prevail in the war of emotions first in your mind.
A plan is one way to learn how to gain emotional control in crypto. Numerous Nigerians get to the market without a strategy. They only want to earn money in a hurry. However a plan will make you understand when to enter, when to take profit and when to get out. Examples are that when I purchase one coin and the price increases to 2000 why I can say, when it reaches the 1500 point; I am going to sell the half and retain the other. Such a plan will assist you in remaining focused even in situations where the market is volatile. It, also eliminates guessing and emotionality.
will not feel too much pressure.
I would also like to add the problem of listening to too many people at risk. In crypto everyone has an opinion. On Telegram and YouTube and X (Twitter) you will find people yelling, This coin is going to the moon! Some will tell you to buy now! Don’t miss it!” However, not every person understands what he/she is saying. By listening to all these voices, you would become confused and emotional. Rather read 1 or 2 credible sources, and stick to them. What is more important is DYOR (do your own research). You should know why you purchased a coin, and thus you will not panic so easily. However when its price sheds, and you did so because somebody told you, you will become angry with the one that told you and you will still lose your money.
Crypto is something that has cropped up on a large number of Nigerian youths nowadays. This is one means of coming out of poverty and to overcome the poor naira. This fear must not make us less sensible, however. Crypto is not a quick-riches plan. Yes, some are getting cash. There are those losing on the sly, too, however. Wisdom and restraint of emotion is the difference. In order to earn hard cash in this game, one of the best things which should be learnt is to keep calm. Not like a pump or dump, emotions should not be the determinants. Knowledge and strategy is your guide.
And have breaks. You should not be stared at the charts all the time. It is capable of producing anxiety. There are individuals, who fail to sleep due to crypto. That is not healthy. Your life has to take a balance. Install alarms, follow your strategy and sleep. Even members of the exchanges rest. In case you become too emotional, go off the screen and take a breath.
Lastly, take small wins. Be glad even with 5, 000 in profit. Never say I would have earned ₦50,000. Such is the beginning of greed. Cherish any improvement however slight. Gradually, you will turn into a better trader. And you will begin to be able to see profit arise out of your emotions the same as you train it, not luck, but wisdom.
Crypto is not about money only. It has got something to do with attitude too. Let your mind also be strong otherwise the market will manipulate you with emotions and you will constantly be losing. However, when you are taught to master fear, oppose greed and keep to your strategy, you will start making the transition jumpy to profitable. Crypto can be an excellent opportunity in Nigeria today whereby most of the population is facing financial challenges. It will, however, only work in favour of emotionally strong individuals. Don’t rush. Don’t panic. Being greedy is a bad idea. Be cool, be smart and be on the right side of the ledger.