When crypto trading, it’s important to not just sit back and watch your profits grow on their own. There are certain things you can do to actively prevent crypto trading burnout.
This article will outline 5 key tips that will help you achieve this as well as give you an overview of what burnout looks like, why it happens, and how to avoid it completely in the future.
1) Get perspective
Keeping a sense of perspective can be hard when things are going well. Take a step back and remember why you got into trading in the first place—that might be what you need to recharge your batteries. If that doesn’t work, clear your head with some time away from crypto—try hiking or reading a book instead of staring at charts all day. Whatever helps put things in perspective will also help you remember why you got involved in crypto in the first place: Because it’s fun!
It’s also important to remember that a bit of failure is part of any worthwhile learning experience. Embrace your mistakes and learn from them. Remember: crypto is about having fun, experimenting with new strategies and taking calculated risks. If you’re starting to feel burned out, take a few hours off and try again later. You’ll be back in form before you know it!
2) Buy the dip
A dip is essentially a temporary decline in an asset’s price, while a crash is more severe. The best way to avoid burnout when trading crypto (or any market) is by knowing your limits and buying the dips. If you don’t know what you’re doing, it can be easy to make mistakes that cost you lots of money. Good traders will wait for pullbacks before buying back into a trend. This reduces your risk and keeps emotions out of your trading strategy. Make sure you take regular breaks if things are moving too quickly for you. It might feel boring or counterintuitive at first, but taking periodic breaks is better than getting burnt out entirely!
Dips are a natural part of trading, and if you wait for them, you can take advantage of their reduced volatility to get in at better prices. It’s easy to let your emotions run wild when prices start fluctuating wildly, but by holding back and waiting for pullbacks, you can keep emotions out of your strategy and reduce your risk overall. If a coin is climbing too quickly, it could be due for a pullback or correction—it might just be moving too fast for its own good! If it keeps going up at an accelerated rate despite minor dips along the way, something probably isn’t right.
Buying at a dip is also an excellent strategy for mitigating risk. If your coin moves down more than you expected, you can always hold onto it until a pullback and buy-in again at a lower price. If it doesn’t recover, at least you’ll have to cut your losses rather than sell everything immediately and take a loss. The same strategy applies to altcoins as well—they tend to move less than bitcoin does, but when they do move, it’s often by 10% or more. This makes them less volatile but also harder to predict. It also means that even if they don’t gain much overall over time, it can still be worth buying dips on them from time to time!
3) Take regular breaks
It’s easy to get caught up in a cryptocurrency trading session, but we can’t stress enough how important it is to step away. Your eyes can start feeling strained and your mind can become unfocused as you sit there refreshing prices—this means it’s time for a break. Taking short breaks can help relieve mental fatigue by giving your brain a chance to rest and refocus. You don’t need an app or timer; just take regular 1-2 minute breaks every hour or so. You should also pay attention to how long you stay focused on one thing without taking a break—you don’t want your work sessions turning into marathons that end with sore eyes and worse productivity than when you started.
Breaks aren’t just important when you’re focusing on cryptocurrency trading, either. You should take breaks from your other computer-based tasks too—it doesn’t matter if it’s for two minutes or an hour; eyes and mind will thank you. It can even be helpful to get up from your desk, stretch and walk around for a few minutes—that way when you return you have a fresh perspective and are ready to dive back in with renewed energy.
4) Set limits
A lot of people think they can spend all day checking prices, refreshing news feeds, and watching charts. That’s nonsense. There are only 24 hours in a day; you need some of that time for eating, sleeping, exercising, spending time with friends and family, working at your day job—and yes: taking care of crypto trading. Don’t let burnout ruin your crypto trading career! Set daily limits and stick to them as closely as possible; if you’re starting out with a small portfolio or a full-time job, it might be easier to have every third night off or something similar—but no matter what: don’t let yourself get burned out.
If you’re working a full-time job, for example, you probably don’t want to get on your computer in your free time. That’s totally fine; enjoy some downtime and be sure not to ignore your friends and family. It might sound like I’m telling you to quit trading—I’m not! But if you’ve got a full-time job, it’s going to be difficult—if not impossible—to spend all day checking charts, watching news feeds, and refreshing social media.
5) Have multiple strategies
Constantly buying and selling without any strategy is risky business, regardless of whether you’re trading stocks or Bitcoin. Don’t put all your eggs in one basket, so to speak. Instead, diversify your portfolio using a variety of different strategies that are likely to profit no matter what market conditions might be coming in the future. For example, you can buy and hold several low-risk investments with value appreciation potential or ride out volatility by hedging against it with options contracts—which provide insurance at an extremely low cost. One way or another, protect yourself from dramatic losses and position yourself for success even if things go poorly.
Another smart strategy is dollar-cost averaging, which simply means investing a fixed amount of money over time—usually each month. Diversifying your investments in accordance with predetermined percentages can make it less likely that you’ll be impacted by sudden market movements. Dollar-cost averaging will also allow you to buy more when prices are down, so your total holdings will increase over time regardless of what happens in any given market. Also note that you can practice dollar-cost averaging when buying cryptocurrencies, as well: As long as you’re executing trades from separate bank accounts and using different wallets for each one, there’s no issue with buying two coins at once or spreading out purchases over time.
Like any endeavour, trading in cryptocurrency markets will take practice. Inevitably, you’ll experience a period of losing trades and you’ll need to develop and stick with your own strategy for dealing with that. The important thing is not to give up when things are going poorly—there’s plenty of time for that when you look back a year from now and see how far you’ve come! For now, keep your head up and work hard; eventually, it’ll pay off.
To sum up, here are five tips for avoiding burnout: 1. Set goals and track your progress regularly 2. Have a system in place 3. Take regular breaks 4. Don’t take things personally 5. Cut yourself some slack and enjoy it!