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Crypto winter negatively affects traders’ mental health

Many struggle to maintain their emotional health during the crypto winter – mental health and self-help experts can help them navigate the ups and downs of a long-term bear market.

A long bear market, a string of high-profile arrests, the collapse of many major institutions: These events negatively impacted the mental health of users involved in the crypto industry

elizabeth sterbenzmental health professional, Srikumar Raodiscussed with Cointelegraph, a welfare expert, how to deal with depreciation in the investment portfolio. Sterbenz is a California licensed psychotherapist specializing in individual therapy, couples therapy, and financial therapy. Rao is an international speaker and executive business coach with a PhD from Columbia University. He teaches at Northwestern University’s Kellogg School of Management that blends Eastern philosophies with modern business practices.

tsunami ride

Rao believes that a tsunami hit merchants, developers and community members. They are experiencing a long-term crypto winter that shows no immediate signs of recovery: they celebrated the NFT boom for two years, and a devastating crash followed soon after.

The community was further shaken when key figures in the cryptocurrency industry such as Sam Bankman-Fried and Do Kwon were accused of fraudulent activities that damaged the reputation of the entire industry and harmed investors.

And the blows keep coming. Just a few weeks ago, the US Department of Justice and other international officials shut down a Hong Kong-based cryptocurrency exchange and arrested its founder in Miami.

But Rao sees the bear market as an opportunity to learn to “surf in the tsunami.” Calmly observing what is going on in the market. For him, this can be achieved by recognizing that victory is not a requirement for happiness. Happiness does not come from trading right or making a lot of money:

“The belief that something has to happen in order to be happy is completely false. But you believe it so strongly because you never consciously thought about it. You fell into mass hysteria.”

Sterbenz takes this a step further by suggesting that there is no need to go it alone, especially in these difficult times. “I think you need to be able to trust a good financial advisor. He is an important part of your team.

The author believes that sound and objective financial advice can provide greater peace of mind.. Having someone to help you evaluate your trades and make decisions about your overall financial situation gives you the feeling of being protected. “So you can put aside financial worries and focus on your health,” says Sterbenz.

Rao says it is also important to acknowledge that cryptocurrencies have no intrinsic value.: prices are often completely arbitrary. A large number of people would agree that a certain coin has a certain value at a certain time; but when people lose interest, the value of the asset suddenly drops. Rao says:

“It’s much easier to accept that what can happen is if you accept it upfront before you invest.

A crowd gathers outside Oregon Trust & Savings after executives announce the company’s closure for default – August 22, 1907. Source: Wikimedia Commons

How to deal with unexpected situations?

The community’s worst nightmares have come true: first Terra’s collapse, then the impeachment of its former CEO, then the explosion of FTX and the arrest of its founder. The inevitably stricter regulations after accidents of this magnitude made the situation even more stressful.

Crime is now undeniably part of the crypto ecosystem, just as it is in the traditional investment landscape. It’s a hard pill to swallow. However, Sterbenz suggests that there is no shame: it does not mean that entering the crypto world is indecent or embarrassing.

According to Sterbenz, it is important to separate yourself from the inappropriate behavior of unscrupulous characters and accept that there will always be negative entities.

Rao believes that bad luck or blaming them certainly does not lead to happiness or peace of mind. According to Rao, when the universe or its participants don’t play by the rules and things don’t go their way, it’s easy to think the sky is collapsing. Anxiety and unhappiness follow immediately:We tend to blame an outside force. “I’m unhappy that that man did it, and he’s a real scammer.” And now he’s being investigated for being a swindler. But meanwhile, the markets have gone downhill.’

Instead, he recommends sticking to the idea that you’re interested in crypto because your path is getting you there. “It should look like this:I’m in this industry because it’s my way of life and I enjoy playing. I don’t necessarily have to win to bring me satisfaction or joy’,Rao says.

But I’m devastated!

According to Rao, traders who have lost everything must admit that they believed in something that turned out to be disastrously wrong, even for a long time. Happiness cannot be lost in a bad trade, nor can it be found in a successful trade.:

“The thing to do is not blame yourself. Just admit it was a mistake. ‘It was a clean cut with a knife: but now that I’ve been hurt, I can see how wrong I was. Not to repeat the pieces and not repeat the same mistake. Tomorrow is another day, I must not let today’s doubts ruin my future’.”

Awareness is like a flashlight, says Rao. A flashlight illuminates what you point it at:If you point to the big money on paper you never sold and now it’s all gone… you light the torch of awareness for something you call wrong in your life. This is an ineffective strategy.

recommends instead shine the torch on what to do next: “You are not starving, your home is not confiscated or you are not fired; even so, no one is holding your hands in a vise while pulling your nails.

For those struggling with anxiety or depression, Sterbenz recommends therapy and believes it will. professional help can be a door to personal growth. If you don’t have a serious clinical need and need treatment, she recommends focusing on the concept of radical acceptance.

According to the Berkeley Well-Being Institute, radical acceptance “Accept what is out of your control and embrace what happens without judgment.“Radically accepting emotional or physical pain can reduce the suffering it causes.

sterbenz says:

“If you’ve invested in a cryptocurrency whose value has plummeted after the events of last year, there’s no need to throw in the towel. Other people have been impacted as well. You’ve made the decision that feels best to you right now.” that special moment.”

let me help you

Anyone who has thoughts of harming themselves should seek help immediately.. Sterbenz recommends contacting a trusted friend or seeing a doctor directly. The crypto community also tends to help traders who find themselves in distress by sharing hotlines and global suicide prevention resources.

Sterbenz assures that these negative thoughts will fade over time: “I know you may not feel that way when you find yourself in such a situation, I know that time seems to have stopped.That’s why she believes it’s very important to have people around us who care about us.

Sterbenz also believes that family and friends should not hesitate to reach out to loved ones who are considering self-harm. Many people think that talking about suicide increases the likelihood of it happening, but this is simply not true: Ask people who are having difficulties directly if they are considering harming themselves..

Lady of Crypto, a trader and influencer on Twitter, is also fighting for her sanity. He tells Cointelegraph:

“It’s been an incredibly difficult time for the cryptocurrency industry, a lot of people have been affected. I’ve had friends who struggled, I’ve seen how people can become shadows of their old selves and be pushed to their limits. Check out these posts. On Twitter it’s really deplorable. No one thinks suicide is the only option. “I thought it would be worth it if I kept my inbox open and could make a difference for even one person.”

So how is happiness achieved?

According to Rao, happiness cannot be “searched”. You won’t find it in your favorite altcoin, it won’t pop up all of a sudden when BTC finally crosses $100,000. The more happiness is sought, the more it escapes; happiness just happens. It is not a target to be pursued, but emerges organically with the adoption of the right mindset.:

“The mentality that crypto traders must adopt in a crisis is: ‘OK, I screwed up’, ‘Okay, I threw away a huge pile of equity and capital.’ It’s so sad, but that’s how it happened. Now I can feel sorry for myself every night and make it worse, or shine the light of my awareness that I’m still healthy. I’m still whole. And I’ve learned a very important lesson.”

Concentrate on what to do next. Even if yesterday’s red candles persistently seek your attention, Rao recommends ignoring them. Instead, focus on the actions you need to take in the future.

Mitch Seven He is a writer who covers cryptocurrencies, politics and the intersection of these two things, as well as a handful of unrelated topics. He believes cryptocurrencies are the future of finance and is grateful to have the opportunity to talk about it.

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