BITCOIN WATCH-When thinking of trading with Bitcoin, many people just resort to reading all of the processes that power this cryptocurrency, getting educated on how trading works, and after all of that is done, they think that they are ready to dive into this world and earn money.
But, trading and making money with Bitcoin is not as easy as one would think. There’s a lot more to the process than reading and learning the basic theory of how this cryptocurrency works. There are also several psychological things that you need to master if you want to be successful and that is exactly the topic that we wanted to discuss in this article.
We’ll be taking a look at the top psychological traits that you need in order to master Bitcoin trading. Without any ado, let’s dive into the details.
As with any fundamental or any investment, you need to learn to be patient with your decisions. More so, make sure that your decisions are educational, rather than emotional. Studies have shown that decisions brought on emotion are extremely likely to fail due to the lack of research and knowledge behind the action. Be patient with Bitcoin. Check what the latest trends in this cryptocurrency are and how you should act based on that.
Dealing With The Fact That You May Lose on Some Days
Bitcoin has a very high volatility rate. That means that its price is subject to changes with each passing day. The high volatility rate is one of the biggest challenges for this cryptocurrency. That is why traders may end up with a hefty profit on some days, but they also may end up losing money.
The good thing is that reputable trading sites such as https://cryptoengine.io/ have advanced AI systems that predict Bitcoin’s future fluctuations and thus, help you deal with the volatility rate and allow you to maximize your profits. But, while these services increase your chances of making a profit, they do not guarantee it.
That means that you are still likely to lose money sometimes and that is a fact that you just have to deal with. The idea is to fall down eight, but rise nine times. Not every day will be shiny when investing in Bitcoin and the sooner you realize and deal with that, the easier it will be for you.
Working Under Pressure
Contrary to working with patience and making rational decisions, there may be some periods where you will have golden opportunities and you will be forced to work under pressure. This is where the best cut out from the rest of the pack.
Working under pressure will test your dedication and willingness to make a profit, hence, you must be comfortable working under these types of conditions.
Fear of Missing Out
Finally, we wanted to share one psychological aspect that comes into play when a false golden opportunity is presented to you and that is Fear of Missing Out. Here’s how it works. Often, novice traders will see a pattern in which Bitcoin experiences a rise in value over a certain period.
Thinking that this is too good of an opportunity to pass as Bitcoin will rise more in the following days, they invest a lot of money into it. But, since Bitcoin's volatility rate makes it unpredictable, it drops in value shortly after and instead of scoring a profit, they end up losing money. Dealing with FOMO is very important as it will make a huge difference.
As you can see, Bitcoin trading is not as simple as one would think. There are a lot of things that you need to take into consideration and they require a lot of dedication.