The Mental Impact of the FTX Collapse
It’s been a tough couple of days for crypto investors and enthusiasts with the collapse of FTX, one of the world’s largest cryptocurrency exchanges.
For most of us, the FTX collapse was a complete and total shock. It just goes to show that in cryptocurrency and in life, there are no guarantees. And it leaves a lot of us wondering: what’s next?
The Mental Impact of Losses
The FTX debacle has taken a toll on more than just people’s portfolios-it’s also shaken many people’s faith in crypto and left them feeling mentally and emotionally drained. For many, this has been a tough pill to swallow. After all, crypto investors have been on a rollercoaster ride over the past year, with prices reaching record highs followed by sharp sell-offs, and the Terra disaster. And now, with the FTX collapse fresh in our minds, it’s easy to understand why some people are feeling pessimistic about the future of cryptocurrency.
However, it’s important to remember that markets are always fluctuating and that losses are a part of investing. What’s more, even though the crypto market is still relatively young, it has weathered plenty of storms over the years and always bounced back stronger than before. So, while it’s natural to feel down after a setback like this, it’s important not to lose sight of the bigger picture. The cryptosphere has come a long way since its early days and it still has a lot of room to grow.
How to Cope Mentally With the Recent FTX Crash
If you’re struggling to cope with the recent crypto crash-mentally or emotionally-you’re not alone. Here are a few tips that may help you weather this storm:
Talk to someone who understands
Whether it’s a friend, family member, or financial advisor, talking to someone who understands what you’re going through can be incredibly helpful. Just knowing that you’re not alone in how you’re feeling can make a big difference.
Focus on your long-term goals
While it’s normal to be focused on your short-term losses after a market crash, try to keep your long-term goals in mind as well. Remember why you got into crypto in the first place and what your goals are for investing. This can help you stay focused on the big picture even when things are tough in the moment.
Take breaks from social media
Scrolling through Twitter or Reddit can be helpful when you want to stay up-to-date on what’s happening in the market but it can also be detrimental to your mental health if you’re seeing too much negativity. If you start to feel overwhelmed, take a break from social media and give yourself some time to relax.
Losses Are Normal
Remind yourself that losses are normal:-in any market-and that they don’t necessarily reflect badly on your investment strategy or abilities as an investor. No one can predict the future of markets with 100% accuracy and so losses should be expected from time to time. What matters most is how you react to those losses and whether you let them derail your long-term investment strategy. REMEMBER: YOU ARE NOT YOUR LOSSES. You have survived everything that has ever been thrown at you. You are a survivor and you will continue to thrive. REMEMBER: YOU ARE UNBREAKABLE.
The recent collapse of FTX was a harsh reality check for many people in the cryptocurrency community. It showed us that even in this new and volatile world there are no guarantees-and that losses are inevitable from time to time. However, it’s important not to lose sight of the bigger picture, cryptocurrencies have come a long way since the early days and they still have a lot of room for growth. If you’re struggling to cope with recent events, remember that you’re not alone; talk to someone who understands what you’re going through, focus on your long — term goals, take breaks from social media, and remind yourself that losses are normal. These tips can help you weather this storm and come out stronger on the other side.
I specialize in Web3 Wellness, if you need an FTX Web3 Mental Health Check-In, contact me here.
Originally published at https://www.smartgirlcredit.com on November 11, 2022.