Cryptocurrencies are volatile. Early digital assets had double-digit daily price movements
The Relationship Between Mental Health and Volatility
There are several reasons why mental health and volatility might be a relationship. People who suffer from mental health problems may be more likely to experience volatile emotions. Additionally, stress and anxiety can lead to increased levels of cortisol, which has been linked to greater levels of volatility. Finally, people who have difficulty regulating their emotions may be more prone to experiencing extreme swings in mood, which can lead to impulsivity and outbursts.
Volatility can affect mental health in several ways. It can exacerbate existing mental health problems such as anxiety and depression, trigger or worsen symptoms of post-traumatic stress disorder (PTSD), and lead to cognitive distortions and impaired judgment, making it difficult for individuals to make decisions or think clearly.
If someone is experiencing symptoms of mental illness, it is essential to seek professional help. Mental health problems can be complex and challenging to manage on one's own.
A mental health professionals can provide the support and resources that someone would need to better understand and cope with the symptoms.
How Volatility Can Affect Mental Health
Volatility is the extreme movement of prices. Volatility can be a problem because it can lead to uncertainty and anxiety. The consequences of volatility can include stress, depression, and even suicide. To cope with volatility, it is important to have a support system in place. This may include family, friends, or a therapist.
The Impact of Cryptocurrency on Mental Health
Cryptocurrency is highly volatile, which can lead to stress and anxiety. Additionally, it is often used to facilitate crime, which can lead to trauma and PTSD. Finally, there is a lack of regulation in the space, which can lead to fraud and scams.
How To Cope with Volatile Markets
Volatile markets are a normal part of investing and should be expected from time to time. It is important to have a plan in place before investing and stick to that plan even when markets become volatile. Taking advantage of opportunities can help offset some of the losses incurred during periods of market volatility. Patience and discipline are essential in times of market volatility. Seek professional help to get through periods of market volatility.
According to Sergey Miheev, product manager at the financial platform United Traders, investors should not just rely on cryptocurrencies:
First of all, stop perceiving crypto only as a trading instrument, unless you’re a professional daytrader with many years of experience. If you are an investor, it is better to understand how price is created and why it changes, the value of a certain coin and market behavior patterns. Then, you get a bigger picture. One way or another, you realize that a crypto is a developing industry, which means that the best strategy is simply buy and hold. Remember that time is on your side.