You’ve probably heard about cryptocurrency’s volatility. In their early days, digital assets often experienced wild price swings, gaining or losing double digits in just a single day. The current bear market is continuing this trend. When prices swing wild, investors can make significant gains – if they’re lucky – but their volatile behaviour can be bad for their emotions and mental health.
Mental health must be taken care of, but traditional media and public discussion have recently focused much attention on it. The constant despair caused by crypto market volatility can be detrimental to your emotional well-being in finances and investments. The Terra debacle sent the crypto market into a downward spiral and eroded our confidence in the blockchain ecosystem as a whole. Many investors lost their savings and investments after the price crash, so the LUNA subreddit posted suicide hotlines for several countries.
In recent years, prices of cryptocurrencies like Ethereum and Kusama have fluctuated a great deal, which has adversely affected the mental health of crypto investors. According to experts, it is possible to become addicted to crypto trading, and people who continuously follow the price of digital currencies may develop symptoms of this psychological disorder.
According to experts, this process is called ‘day trading’ and is considered the same as gambling. People who trade cryptocurrencies constantly are referred to as ‘crypto addicts’.
The main signs of crypto addiction include muscle tension, anxiety, watching digital asset prices around the clock, and thinking about digital currency constantly, even when engaged in activities unrelated to cryptocurrency. Insomnia and depression are the results of all this.
In some countries, specialized programs are being implemented to address the mental health problems associated with digital asset trading. Investing in cryptocurrency can hurt investors’ mental health. It’s essential to determine how much risk you’re willing to take and limit the psychological impact.
An emerging disease
There’s no denying that cryptocurrency price rise and fall have affected crypto investors’ mental health over the last few years. There’s a chance cryptocurrency trading can turn into an addiction, according to experts. A psychological disorder can arise when you’re always watching the digital currency price. Among experts, day trading is regarded as gambling, and cryptocurrency addicts are called ‘crypto addicts’.
A cryptocurrency addict has muscles tightening, anxiety, constantly checking digital asset prices, and always thinking about digital trading currency even when doing other things. All of this makes you depressed and insomniac.
There are already programs in some countries that deal with mental health problems associated with digital assets.
What’s the risk?
Luckily, not everyone who invests in crypto has mental health problems.
Researchers at QUT in Australia investigated which personalities are most prone to crypto addictions and which should pay special attention to their mental health.
Crypto addiction is common among people who love gambling and don’t trust authorities. It’s because they don’t want anything to do with the government that they’re drawn to cryptocurrency.
Cynical and prudent people who manipulate and deceive others are also prone to crypto addiction.
Crypto addiction is also common among narcissists. They are usually highly confident, so they’re prone to risky investments. Narcissists believe nothing wrong will happen to them in the future, and their unshakeable self-confidence drives them to buy cryptocurrency.
Psychopaths are heartless, have low emotional intelligence, and don’t empathize. Stress and anxiety don’t affect them as much since they don’t react emotionally, so they probably enjoy taking risks. Psychopaths are also impulsive, and this quality and propensity for risky behaviour make them prone to risky trading. They’re afraid they’ll miss out on benefits others get.
Bitcoin is also popular among sadists because they don’t want to miss out. Getting pleasure from another person’s pain gives them a sense of superiority. Psychopaths and sadists don’t have illusions about their prospects, as evidenced by their interest in crypto.
There aren’t all crypto investors who are crazy. However, digital trading assets rarely get you addicted. When trading cryptocurrencies, one should consider all the factors that affect their health, and taking the right risk is key to limiting cryptocurrency stress’ psychological effects.
The key is to focus on more than just the cryptocurrencies themselves.
Zuella Montemayor did her degree in psychology at the University of Toronto. She is interested in mental health, wellness, and lifestyle.