Bitcoin has been experiencing ups and downs since its launch. Expert investors understand how to play with the fluctuations for increased profits. However, regardless of its positive trends, Bitcoin is highly volatile. The asset can surge with multiple dollars today and plummet drastically the following day. That prompts the question, what is the impact of wild crypto volatility on investor’s mental health?
The Effect of BTC on Investors’ Mental Health
BTC is the leading crypto by market capitalization, launched in 2009 by an anonymous group or individual. The best thing is that Bitcoin is decentralized, therefore, not subjected to regulations.
Also, BTC allows anyone to complete transactions quicker regardless of their location. With its ever-increasing value, Bitcoin has attracted investors who want to enjoy the associated returns.
Investors might experience wild feelings when interacting with high-reward and risky assets such as BTC.
For instance, a Bitcoin investor committed suicide after his investment strategies failed to yield lucrative results. As the crypto market crash (a common thing in the BTC market), mental health practitioners witness increased visitors as economic concern rises.
Analysts suggest that crypto investors experience the feeling that stock market traders get after massive collapses and booms. Investors experience impacts ranging from anxiety to brief melancholy during market plummets.
How Investment Relates with Mental Health
According to research, hospitals experienced increased admission as the digital yuan fall. BTC’s downfall shocked most investors looking for money-making opportunities as the pandemic destroyed the global economy. The research revealed a correlation between hospital admissions and poor daily returns on the stock.
Sudden and significant wealth losses can hurt mental health. They founded that individuals that lose their wealth used more antidepressant medication. That was noticeable among individuals with large investment portfolios before the plunge.
How to Stay Safe after Crypto Investment
Individuals tend to forget the cryptocurrencies’ outlook when in a hyperactive crypto atmosphere. Most people switch their behavior when venturing into the highly volatile crypto market. To avoid mental issues as a crypto investor, beware of the related risks and invest what you can afford to lose. Keep in mind that the crypto market witnesses wild fluctuations every moment.
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