You can fall in love with anyone. And that’s true of cryptocurrency investments as well. If you fall in love with a specific crypto, it totally messes with your investing strategies. Here is how to avoid the trap of becoming too attached to a specific cryptocurrency, and how you can remove much of the emotion from your investing.
Don’t turn a blind eye to negative comments or input. Emotional people will screen out unpleasant information to put their mind at ease. Logical people will willingly hear and even seek out all types of information – good, bad, or ugly.
Don’t just invest in a coin because it’s hot. Bobby gives the example of SIA Coin, DNT District 0X, and OMG. They all experienced tremendous growth and many people started investing in these tokens at or near the height or their token price and then the token price fell hard. This is a terrible investing strategy because those people who started investing in these coins near the top joined mainly because of the hype and then once the price corrected these people had a bad taste in their mouth about the cryptocurrency.
Bobby goes on to say, “Remove your emotion from the equation and recognize why you’re thinking a certain way. Successful investors only invest in companies that they believe will do well. The investor will then make investing choices about holding or dropping their investment based on information about how the company is performing and disregard the value of its token/stock price.”
Bobby concludes by saying, “Take emotion out of the decision-making process. If the price is on its way up, don’t get wrapped up in the hype and fall in love with a coin. If the price is falling, don’t count it out.”