Thinking back over the last couple of years, you might think that emotions have played a much larger part in the world of Bitcoin than they have. Even if you’re not an emotional person, there are probably some good reasons why you shouldn’t be buying and selling Bitcoin on an hourly basis.
But what if it has nothing to do with your blood pressure or your heart rate? What if it’s something else? What if there are actual benefits to being emotional when trading Bitcoins? Let’s take a look at 5 good reasons why you shouldn’t be emotional when trading Bitcoin.
You Can’t Profit From Emotions.
The first reason is that you can’t profit from emotions. You can’t make money by buying and selling Bitcoin based on your emotions. You can only make money by doing what’s safe and profitable. You should always be buying and selling Bitcoins in a way that will protect you from losing money. This means that you should never trade on BTC Loophole or other exchanges if you don’t have a plan for how you’re going to pay for it.
The Market Is Always Right.
Bitcoin is a digital currency and it’s not subject to the same laws as other currencies. This means that there are constantly new opportunities for Bitcoin to rise in value, no matter what. This is great news for those of you who want to speculate on Bitcoin and make a lot of money at the same time. However, it’s not so great news for those of you who are trying to buy or sell Bitcoin. The market can always be right, and if it isn’t, you’re going to have a tough time making a living on Bitcoin.
You Run the Risk of Getting emotionally triggered.
You might be thinking that if you’re emotional, then you’re probably not doing a very good job of policing your trading. But the fact is, if you’re feeling really good about something, it’s more likely to get in the way of your trading than it is to help it.
For example, let’s say you’re buying Bitcoin for $10 per share. You feel great about it and think nothing will happen to make it go up in value. But then you see that the price has fallen 10 percent in the past hour! Oops! You may have been emotionally triggered by this information and lost valuable capital.
It’s A Confidence Game.
Bitcoin is a digital asset and it’s important to remember that it is not backed by any real currency. The value of Bitcoin is determined by the supply and demand of Bitcoin. If more people want to buy Bitcoin than there are people who can sell them, the value of Bitcoin will go down. This is why it’s important to stay calm when trading Bitcoins.
You might think that you’re in control of the situation, but in reality, someone else could be buying or selling at the same time and your purchase or sale might not be reflected in your balance sheet or on your website.
You May Lose Money.
The very first reason is that you may not win any Bitcoins when you trade them. You could potentially lose money even if you’re trading on an hourly basis because the price of Bitcoin can go up and down rapidly.
According to CoinMarketCap, the average price of Bitcoin over the past 24 hours is $7,500! This volatility can screw up your calculations – it’s important to keep a close eye on the price and make sure you’re not losing money by trading Bitcoin.
Conclusion.
There are a lot of people who believe that trading bitcoins is a great way to make money. But it’s not really what it seems. The key to success with trading bitcoins is to stay composed and rational. If you’re not in control of your emotions, you’ll be lost in the trading process and likely to lose money.
