The mental science of crypto asset investment: what should be done and how should one think to save their funds?

10 min readMar 15, 2022


What is investment psychology?

In today’s world dominated by globalization where everyone gets somewhat affected by money matters, it is essential to learn how to work with your assets correctly. It is hard to argue against the fact that the success of any business and undertaking rests on the proper emotional and psychological attitude. Modern psychology covers all spheres of human life, so money matters and investment is far from being an exception.

The article will guide you through the question of why investing and working with finances require clear self-regulation skills, as well as what psychological tips you should follow to avoid unnecessary losses, gain the required experience and start making money in crypto.

Psychological tips for novice investors

Any money-related work is always stressful. Fear of loss, uncertainty of one’s actions, a sense of responsibility to others and yourself. The crypto-specific matters lie in the currency volatility, risks, many scammers that are waiting for you at every step, and other pitfalls. All of this has further impact on inner feelings and puts moral pressure, especially on market newcomers.

Before investing in crypto, you should understand why you need it and what goals you are pursuing. All that matters is to get prepared mentally.

There are several psychological tips, through which you can work with cryptocurrency effectively and with any investment, make fewer mistakes, and protect yourself and your life from unnecessary risks.

We suggest getting acquainted with the essential tips of successful investors, offered on the basis of their experience, as well as their mistakes and achievements. How to act to save your deposit and increase it:

  1. Fear of investing in crypto. Everyone gets faced with the fear of the unknown and that is perfectly normal. For many, cryptocurrency is a very complex, incomprehensible and extremely risky matter.
    When you start your journey in crypto, it is essential to overcome the initial fear of the unknown and try to join the community over time. Start with some theory: learn the way the blockchain works, definitionsof cryptocurrency, bitcoin, mining. Move on to more complex books on market analysis and investing, slowly start buying and selling cryptocurrency on exchanges. To make it psychologically easier, allocate a small amount of funds you can spare and start your journey as a crypto investor.
    Most importantly, don’t be afraid to make basic mistakes that beginners usually make. Be brave and be ready for anything: both profit and loss.
  2. Attitude to money. Obviously, all our shocks in the crypto market are only connected with money, namely with the fear of losing them.
    To make it easier for you, try to perceive money in a slightly different manner. Money is energy. You do not lose it, but transfer energy to someone else. All assets in the world are used for interaction — this one is an energy resource. Treat these simply. Money is a renewable resource, and you can easily get it back just as easily as you gave it away.
  3. Stress from losses and nerves when investing. Your health is the most important thing in your life. Nerves, worries and stress, especially from financial losses, damage your nervous system and your health. If you are constantly getting nervous on any “drawdown” or market movement, nine lives will not be enough for you to make money on crypto. Worries won’t get your lost funds back. Quite the opposite, they can only make it worse and take even more than you have lost. Be grateful that this energy was taken from you only in the form of money, and not something more valuable.
  4. How should you act so that the funds come and do not go away? When a person sets a clear goal and plans to make money on it, knowing in advance why they need this money, the universe will always bestow them with the means required and they will make a profit on the market.
    However, it is often the case (especially among inexperienced users) that a person is seized by greed and avarice. Driven by emotions and euphoria from profit, a person does not spend this money on what they planned, but continues to try to increase it “over and over again”.
    It is common for such people to lose all their funds at the end of the day. Just remember: money is energy, if you do not spend it on yourself, it will get passed to someone who really needs it. Important rule: let yourself and your beloved ones be rewarded for the profit received.
  5. FOMO — Fear of missing out. Don’t worry if you miss out on a low price for an asset that then goes up 1000%. If you missed one train, just wait for the next one, it will surely come, but not always on schedule.
    Every year, hundreds of projects get their shot and yield incredible profits to their investors. Sooner or later, given the right actions and skillful analysis on your part, you will be able to earn a long-awaited big profit. However, FOMO for other assets may haunt you for a long time.
    To avoid being subjected to FOMO, do not read cryptocurrency chats, trust yourself and control your emotions. Don’t be jealous of others’ success and don’t beat yourself up for not buying the “same” coin that has risen 100 times. You couldn’t possible be aware of that! The altcoin market is a rollercoaster in many ways.
    Also avoid giving in to someone else’s panic, which is often misleading. This whole market is psychology and a big buildup of people on emotions, so act contrary to the crowd.
    Is the asset being marketed by entire states and is being actively announced in the media, causing panic? One of the signs to buy.this one. They buy an asset, predict bright future ahead of it, and even taxi drivers and grandmothers from the yard tell you about it? One of the sale signs.
  6. Be prepared to lose everything up front. The top selling trader is not afraid of losing their assets and has already given these up mentally. So you should never invest all your money. Do not invest borrowed or credit money, no matter how much you believe in your skills and in the asset. Whoever cares more about money loses everything.
  7. Don’t shift your responsibilities. The worst thing you as a crypto trader and investor can do for your personal growth is to blame other people or the market for your failures. Always take the lead of your decisions. Even if you’re encouraged to buy an asset from another trader, but it didn’t go off, you are the one to blame. It was you who made the decision to buy this coin, meaning that you realized the associated risks.
    As soon as the investor learns to take responsibility for their decisions and funds, personal growth and the ability to apply any experience to their advantage won’t leave them waiting.
  8. Keep dreaming, stay positive, choose your surroundings wisely.
    Our actions and success in certain business reflects our mood and thoughts relating to it. If you wish to become a successful trader, find the right environment to help and motivate you to become the person you strive to become. Get yourself surrounded with honest and positive people. Eschew the dismoralists and pessimists in your environment, and you will get your undertakings in gear!

Practical tips for novice investors

In order to become a successful trader or investor, or simply feel confident in the crypto market, staying emotionally stable and following only psychological advice is not enough. It is extremely important to combine theoretical rules with mandatory practical skills that will help make you a seasoned fighter in the crypto market.

  1. The result takes time. First and most important: in order to achieve results in trading and investing, you need to put a lot of time into this.
    If it seems to you that the crypto market is easy money that you can earn quickly and without much effort, you are wrong. Learn every passing day, analyze your own and others’ mistakes, study high-quality information and take lessons from professionals who have proven themselves and have their results proven on track. They will lead you to understand the market and help you avoid fatal mistakes.
    Keep investing in knowledge and personal growth, since it is better than paying for your own mistakes with your capital. Trust me, in this case you will give tens or hundreds of times more money for your experience.
  2. Never go into debt. A successful trader is a free one. Do not borrow money from friends or third parties for trading and investment.
    The biggest mistake of any novice trader is to borrow money and promise to pay it back. The crypto market is harsh and hard to predict. Never make any promises. If you accept money in trust management, it is better to warn right away that a person may lose all their funds.
  3. The main mistakes of traders and investors are made while staying emotional. When you are not in control of your emotional state, you tend to make quick, inadvertent and rash decisions. Learn to analyze all of your mistakes!
    There is one effective tip: dwell on each trader’s mistake or failure. Think and analyze why you made a mistake, why it happened that way and what you can do next time to prevent this one further on.
    Do not get mad the market, it gets you either money or experience. As good traders say: to stop making mistakes, you need to work in the crypto market for at least 3 years and more than once completely or partially lose your capital. Take this for granted and try to learn as much as possible from the losses that have occurred, because sometimes it is more valuable and more expensive than the acquired profit.
  4. Don’t try to catch the train if it’s already on its way. Do not buy an asset if it has already brought good profits to other investors, and you have just learned about it. Look for worthy projects with a solid foundation no one is talking about. If there is too much talk about the coin, the train has already left. Investing in such assets is a risky deal. You will get a very small profit at best, and in the worst case you might wind up buying high, and the coin will reach the long correction zone.
  5. Buy Bitcoin and store it regularly. Bitcoin is the most valuable asset in the crypto market. Due to its limited issue, useful and unique properties, this “digital gold” is only expected to grow in value over time. That is why every crypto investor has nothing but adhere to the following strategy: buy Bitcoin every month for the allocated income percentage. Do not pay attention to the price — it is not important, the main thing is to keep it regular. Invest and forget about it for years, this long-term investment is sure to please you in the future.
    Don’t forget to store bitcoin properly. You are the one in charge of your asset, and the better you protect it, the more likely you are to be able to use it 10 years from now.
    Keep diversifying your assets and storing them in different locations. Get it hidden securely and do not store them on a computer or device that is connected to the network, your passwords, access sessions, and SID phrases from wallets and different storage accounts.
  6. Diversity brings peace of mind. Another extremely important practical tip: always diversify all of your assets. Crypto is no exception here. Experienced investors recommend dividing all your funds into two parts: buy Bitcoin for 50% of the deposit amount and leave 50% for all other altcoins. Consider buying 1 altcoin for less than 5% of your deposit (but the less, the better, it all depends on the deposit) to cut the risks of losses and protect your deposit from drawdowns and liquidations to the extent possible.
    As for Bitcoin, it should be divided into several parts and sent to cold storage. These can be various cold wallets and vaults. So you will get a 100% guarantee that your funds are secured for many years to come.
    One of the popular and reliable examples of such storages is Simba Storage. The company is headquartered in Switzerland and Liechtenstein and holds a license for crypto storage in the UAE. By storing some of your Bitcoins in Simba Storage, you can be sure that nothing will happen to them in 10, 20 or even 100 years. Your funds will always be stored by cold storage in secure bunkers. And in case you lose access to your account, you can always restore funds through the user verification procedure.

Mix psychological tips with practical experience

At the end of the day, you’ll be able to work on yourself and listen to your inner voice. Using all these simple tips and tricks, you can pick the optimal strategy for working in the crypto market.

Never forget about your health, treat Emoney as energy, analyze your mistakes and be prepared for drawdowns and liquidations up front. All of this will make you a cold-minded investor, and you will be able to always stay on the right track.

Remember to diversify when storing your Bitcoins in secure and verified vaults and cold wallets. Otherwise, in spite of all your rich experience and success, you may risk losing all funds in one day. That is why it is essential have theoretical psychological tips coupled with practical actions!




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