Fight your inner crypto demon the only way possible…
“Go on, just do it.”
“Do it. C’mon. Just click the button. It’s all be over with just one click. All the stress, the worry, the sleepless nights. Do it. Do it. Do it!!”
“Oh god. What have I done?”
Ever had one of those conversations with your inner crypto demon before? You know what it’s like. You’ve just sent a bunch of tokens onto an exchange. You’ve frankly had enough of this crazy up-and-down volatility.
You just want it all to end, you’re sick and tired of the worry from seeing your ‘hard earned’ token fly higher, plummet lower, fly higher, plummet lower, plummet lower… plummet lower.
You have this little internal monologue where you’re trying to fight your inner crypto demon and follow your inner crypto guru.
Your crypto demon just wants you to be rid of it all. It plays on your emotions, your fears… all your fears… and can be a tough little demon to fight. And it’s strong, and it often wins the argument.
‘Better to take a hit now than a worse hit later. And besides, you can always buy back in lower and laugh all the way to the bank’
We’ve all heard that in our heads before. However, it can be a critical error to take hasty action without the right steps in place.
I know the crypto demon well. I’ve been fighting it for almost nine years now. And I’ll be the first to admit, he’s beaten me a few times.
My first foray into Bitcoin was when you could mine it on a computer with a CPU. And not long after, a basic, single, stock GPU would do the trick wonderfully. At the time I had a Toshiba laptop that was backing a (relatively basic) NVIDIA GeForce graphics card.
It was all I needed to mint bitcoin. Could have, should have been retired on a beach with tens of millions worth of Bitcoin right now. But I’m not. And I don’t shy away from that fact.
I’m not, because my crypto demon was strong when I was a noob to crypto.
Working as a regulated financial advisor at the time, every fibre in my body said this was too risky, too volatile, and to throw a few grand at this new digital gold would be kissing goodbye to that few grand.
Besides, I’d seen it go from cents on the dollar, to a few bucks, to around $30, and then back to a couple of bucks. The next logical step – according to the crypto demon – was back to cents on the dollar… and maybe even nothing.
Hindsight is a wonderful thing. And it’s easy to be a hero with hindsight. But we all know how that Bitcoin story played out. Since then I’ve had more chances to silence the crypto demon and cultivate my inner crypto guru. But it’s taken time and patience and the right mode of attack.
Now I’ve never been more confident and more excited about the potential of crypto to change the world. It’s a true revolution. And it’s projects like LIFE that make every day of this wild adventure worthwhile.
There’s more to my story with Bitcoin. But the point is, there was still a part of my brain – my inner crypto guru – that said, ‘stuff it, this is something big, really big. Just back me, your gut, roll with it, go long, and just see what happens. You might be right.’
However, as we know when you’re a ‘noob’ to all this, that’s a very, very difficult narrative to follow.
Fortunately with years of experience I’ve learnt how to listen to both my inner crypto demon and guru, and to weigh-up and follow the right path. To do that isn’t something that’s easy if you’re a ‘noob’ to all this as well.
For what it’s worth, my view on a ‘noob’ is anyone that came into crypto after June 2017. Albeit now you’re seeing the full effects of crypto cycles so you’re already getting battle-hardened.
Dealing with your emotions when it comes to buying, hodling, and having conviction in crypto is the single hardest thing to overcome. And there’s simply only one way to effectively fight it. There’s only one effective mode of attack.
Plan and strategy.
Sounds obvious and basic, doesn’t it?
With over a decade experience in financial advice, and almost nine years in crypto, I know there’s simply no other way to effectively fight your inner crypto demon.
The thing is, most people have no plan, no strategy. They just get involved in things on a whim and a prayer. And I’m not just talking about having no investment strategy or plan. There’s no budget, no career goals, no life goals, nothing to reach for, nothing to achieve – it’s by the seat of their pants or bust.
And without strategy and a plan, bust is often the outcome.
Your strategy doesn’t have to be complex. It doesn’t have to be ‘become a billionaire in two years’. It should include what you’re trying to achieve and a date by which you’re trying to achieve it.
It should include a stretch goal, a reasonable (but not easy) goal, and it should have a number of milestones along the way. If you don’t have a plan with a few spots along the way where you can notch up a victory, then it becomes exponentially harder to stick to.
And those little wins might be as basic as saving an extra 20% this month and then using that to acquire more crypto. That’s just an example, but that’s something achievable that a plan can help you achieve, that you can strike-off as a win.
Write your plan down. And don’t be afraid to alter it along the way. It should be fluid, but ultimately have defined outcomes. This will help you to navigate the wild swings in volatility we see in crypto markets… and in life.
It’s of course no guarantee for success. But it certainly helps to give you the best shot possible. It also helps to push aside the noise and the FUD you always hear from others (who usually don’t have a plan).
Your plan and strategy is yours, and yours alone. You aren’t like anyone else, so neither should your plan and strategy be.
Again, this might all seem glaringly obvious. But do you have one? I hope so. Based on my experience, probably not. So make one, think about one, write one down.
It’s the only way to effectively deal with crypto cycles, the volatility, the noise, and to help you get through those restless nights that always come when you’re immersed in the world of crypto.
Written by LIFElabs Adviser & Friend, Sam Volkering