The Impact Of Crypto Crash On Mindset

in LeoFinancelast year (edited)

Hy Hivians, I hope the day is going fine. Since we are approaching the end of the year of 2022, it is necessary to evaluate crypto its impact of on investors’ mindset.

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Money is essential in carrying out investment, but the nature of investment determines. I will like to use a case study of FTX crash.

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I have read a lot of articles as regards and also listened to few of his speeches. It just a clear indication of lack of experience in handling of funds.

Take a look of the statistics below.

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The price of FTX is back to it's all time low once again after three years.

However the principle of finance is either growth or diminishes. Money doesn’t stays in one place for long if it does, it begins to rot. It is either it’s been spent or been grown by including an investment.

There are two kinds of investments namely; good investment and wrong investment. It becomes a good investment when we make profit in return and otherwise when it’s a loss it affects the mind.

Here are the means it affects the mind

Thought

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Having experience a loss such as FTX where the trusted individual given to take care of the funds misuses the opportunity, it leads to loss and affects our thought.

I shared how an individual who invested his company’s funds in FTX which until this moment he is still in the hospital filled with thoughts on how to repay back the company.

But here are some words of advice, do not invest more than you can lose. It’s very simple, crypto investment should be of spare money in which when you experience a loss, it won’t affect your thoughts of surviving the crash.

Health

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The health is really an important factor when considering effect of crypto losses on mindset. People who got higher blood pressure finds it difficult to cope in such condition as they tend to have increase blood pressure which may affect the health and cause death.

My suggestions

Having considered the impact of crypto crash on the mindset which may affect our thought and health, it is necessary to present rules as regards crypto investment.

Decentralized decision making on finance

Like I said earlier, I am a banker and I realized each time we want to make a financial decision with data analyst, there is usually a meeting of committees on the decision making process. This implies if there is a win, everyone rejoices.

However crypto decentralized decision making should be in the hands of users who communicate or vote what their funds will be used for.

Not for betting purposes, people who prefer funds be used for betting purposes can have their forum and a person who aims at real investment got their forum too. But users can have a track record of what their funds is been used for.

I understand this is just an introductory phase of crypto currencies such things are bound to occur but if we want to ensure the activities of crypto runs on a smooth ride it is necessary to evaluate the negative side which is the effect of a crash.

Thank you for reading; it’s my pleasure to share with all. Do have a nice day.