How to Stay Sane in a Crypto Bear Market
Currently, it’s September 2022, and let’s just say that the world is a shit show - and no, that’s not an understatement.
Inflation is slapping us where we don’t want to be touched, gas prices have been astronomically high, the political environment is inhumane, and the world as a whole is struggling to stay afloat as we tackle topics like abortion, climate change, and gun control to name a few.
To add to the mix, we’re also up against a crypto bear market which can perfectly lodge itself into your infrastructure of stressors. That being said, the world doesn’t need to stop and it still is possible to move at great velocity towards your goals (both psychologically and financially). Realistically, during times like this, it’s important to keep it real and keep in mind that this isn’t a sprint, it’s a marathon.
By the end of this post, you’ll learn about some of the most common crypto bear market mistakes I see my clients making and how you can potentialize yourself at a time like this.
In my clinical practice, I come across clients talking about how their mood is directly impacted by the state of the crypto market. On green days, they feel cool and in control - life’s good. When their investment portfolio is a sinking ship, however, it’s prime time for imposter syndrome to kick in and to feel a loss of control.
Inflation or not, if the state of the crypto market is directly proportional to the state of your well-being, then you’re in trouble. If that’s the case, it means that there’s something you’re doing wrong. If leveraged effectively, this places you in a position of power, however, because it also means that there’s something you can be doing differently, and for the better.
Here are a few simple and effective strategies to take responsibility for your wellbeing and invest in your mental health:
Stay curious and keep asking questions in order to maintain an upward learning curve
When met with unfavorable circumstances, our natural inclination is to either get defensive or to fall into a state of defeat - I see this happen all too often with my clients, in fact, I’m guilty of doing this as well. This is bad news when it means this mindset stops you from being observant, asking questions, and learning.
With a reactive mindset, it’s hard to take a step back and learn from what the environment can teach you. In effect, you think that you know more than you actually do, and so you ignore any signs to the contrary and end up engaging in flawed decision-making.
The danger in this attitude is twofold. For one, it doesn’t look or feel good when we get reactive and it can even turn into burnout. Secondly, this can lead to a compounding amount of missed opportunities because a basic shortcoming of being reactive is that it can either slow down or stop you from learning altogether.
Being in a bear market can be leveraged by recognizing those dangers, and rather, using this time to step back, reflect, ask questions, learn, and tap back in. If you can simply be intentional about maintaining an upward learning curve (especially on losing days), this can skew your entire mental landscape for the better. This allows for curiosity and exploration, both of which invite growth and evolution.
2. Lead with strategy, not impulse
The goal shouldn’t be to feel bullish at all times and to perform at 100% around the clock - was that confusing? Let me try again, in fact, let me refer to the philosophy of Brazilian Jiu Jitsu which will do a much better job at explaining this idea than I possibly can.
According to John Danaher, one of the best Brazilian Jiu Jitsu coaches in the world, when a person is taken down to the ground, they will not be able to express their utmost strength, torque, explosiveness, etc. This is where a person trained to maneuver on the ground can move to a dominant position using trained, calculated movements and strike, strangle, or out grapple an opponent.
The same can be said for navigating a crypto bear market. When your investment portfolio is metaphorically taken to the ground, this is where you want to practice discipline and stay focused. For starters, refraining from reacting impulsively, and rather, being observant and finding ways to strategically navigate the inevitable circumstances so that you can lead with your strengths and keep your impulses in check.
Part of staying psychologically afloat in a crypto bear market is not only utilizing your strengths but also recognizing your flaws and navigating them effectively and strategically. Time and time again, my clients share with me how they “need” to be 100% all the time. This is a concept I simply can’t get behind because it’s unrealistic, and its results are not sustainable - no one can perform at their best 7 days a week over the long term. Also, you don’t “need” this, but rather you “want” it - big difference there.
You’re a human, you’re not a machine, and the chances are that you’re trying your very best despite the state of the market
3. Lose with grace
Yes, it’s important to stay focused. Yes, it’s important to have grit. Yes, it’s important to be driven. If I could add one more to that list, I’d say it’s also important to have humility, this one can be easy to forget, especially when the times are tough.
Here’s the truth. There’s always more where that came from, this isn’t the first and won’t be the last. There will always be more wins to be made. And there will always be more losses to be incurred. Think of it as the rules of the game and you can’t get frustrated with yourself for something that simply comes with the territory.
At the end of the day, you can’t hold yourself responsible for what’s outside of your control and that’s okay.
When you do incur a loss and you’re in the trenches, which we all experience, your best bet is to get with it and lose with grace. While it is challenging to put into practice and requires you to push past your comfort zone, it certainly is possible and it’s an effort worth the hassle if you ask me.
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