Today let’s discuss mental health and the crypto market.
Personally, I find it difficult to deal with mental health and financial issues in volatile markets. Because the market is so volatile, you can't predict what your net worth will be the next day, but this is the reality we investors deal with.
"The best outcome is Valhalla, the worst outcome is just going back to your old life. Screw it and keep doing it." - From a trader
Should I choose money or mental health?
This is a question I’ve been thinking about a lot lately, especially as I reflect on the experiences of those who have made enormous fortunes in the volatile world of cryptocurrency.
Someone once said “You don’t want to retire. You want the freedom to pursue what you love”, however, I can’t help but notice that those who have made a fortune in this space have one thing in common: once they’ve made enough money, they want to exit the cryptocurrency market completely.
Cryptocurrency, we put everything on a huge bet, hoping it will give us financial freedom for life. The worst case scenario is that we lose everything and have to go back to normal life.
And in the best case scenario, we create wealth that lasts for generations.
But at what cost?
Many people I talk to in the crypto space dream of making life-changing money in this bull cycle and wanting to retire permanently. I mean retirement, not in the daily battles of crypto Twitter chasing the next audacious investment, but in the hope of living off staking rewards(in theory) and the occasional speculative bet once they’ve made enough money.
But the truth is, almost no one really leaves these markets. Once you’ve had a taste of these markets, it’s hard to leave. Even people who have made enough money to live comfortably on a beach for the rest of their lives return to the markets. It’s like a never-ending game of financial markets, and when the “music stops” (i.e. the market crashes or there’s a major move), no one wants to be the one who doesn’t exit in time when the market changes dramatically.
So why are we looking for exit signals?
Why does everyone say if they make money they will get out in this cycle? Part of it is because they think it is the wise thing to do. But I think the bigger reason is that the mental stress of 24/7 starts to take its toll on people. The cryptocurrency market is a relentless existence and brings a lot of stress.
Imagine having a large portion of your net worth in speculative assets that could drop by more than 80% based on a tweet from a billionaire.
You wake up and go to sleep every day to watch your "portfolio" fluctuate dramatically. You spend every waking moment glued to your phone tracking prices. This cycle of hope and despair slowly wears you down.
Then consider the opportunity cost. Every minute spent staring at a chart is time stolen from spending time with loved ones, pursuing a hobby, or improving your mental and physical health. Not to mention the havoc it wreaks on your sleep schedule and circadian rhythm.
So let’s talk about what cryptocurrencies mean to us, and what’s really behind all these wagmi’s, lambos, and moon missions.
Positive and negative changes
There’s no doubt that if you do it right, the potential financial gains are huge, even life-changing. But I can’t help but wonder, is it all worth it? How much money is “enough” compared to the best years and relationships of your life? And even if you hit that magic number, so what? What can money really buy?
Some might say it gives you freedom. Freedom to do what you want, when you want. To pursue your passions without financial constraints. But I think that freedom is an illusion for most people. Because the game is so addictive, you can't help but return to the market even if you already have "enough" money.
This is not to say that people haven’t improved their lives through cryptocurrency. Many have been able to escape poverty, extremely expensive areas of living, and dead-end jobs in pursuit of a better life through this technology. That’s one of the most beautiful things about a permissionless financial system, isn’t it?
But behind every success story, there are countless people chasing the same dream. Yet they may have lost years of time and savings to scams, hacks, and bad trades. The lure of a 100x return is always around the corner, ready to lure them back.
So before you go all in and buy a new small-cap coin, ask yourself, what is the true cost? Are you really ready to devote the best years of your life to the cryptocurrency market? Forgoing precious time with friends and family in pursuit of wealth? Maybe you are, and it’s a conscious choice on your part. But don’t fool yourself into thinking it’s not at the cost of great personal sacrifice.
As a wise man once said, “You can make your money back, but you can’t make your time back.” So as we dive into the next wild bull run, take a moment to reflect on what you’re chasing and why, and make sure you’ve weighed it all.
Because the biggest risk in crypto is not getting scammed on Doge, or having your assets lose 90% of their value. It’s that you end up financially richer but find yourself mentally and emotionally bankrupt. Then all the money in the world can’t bring back what you sacrificed to do so.
Cryptocurrency has truly changed people’s lives. For some, they’ve gone from rags to riches, allowing them to completely transform their financial situation and quality of life. From barely making ends meet to being able to care for loved ones and pursue their dreams. This kind of freedom is priceless, isn’t it?
For others, the changes are more subtle. Maybe they still work a 9-to-5 job, but now have a stash of money in a stablecoin that gives them peace of mind. Or, they’ve been able to pay down high-interest debt and improve their credit score, which will open up more opportunities for them. Even a little bit of money to work with can be powerful.
Of course, not all change is positive. I’ve seen friends become so consumed by the crypto market that it takes over their entire lives. Every waking moment is spent staring at a screen, neglecting physical health and relationships. The dopamine rush that comes with every market uptick can be as addictive as any drug.
There is also a dark side to the great wealth that some people achieve. Sudden wealth can breed paranoia, isolation, and attract all the people who shouldn't be in your life. Not to mention the enormous stress that comes with trying to maintain such an unsustainable lifestyle.
There’s a reason why the saying “more money, more problems” exists.
Ironically, for many who have “made it,” their relationship with money has become more strained than ever. What was once a means to an end has now become an end in itself. The fear of losing it all can be just as psychologically damaging as the poverty they were trying to escape. It’s not without reason that many lottery winners end up tragically broke.
So, while the financial benefits of cryptocurrencies are undeniable, it’s important to remember that wealth is a tool to get you to the life you want, not the end-all, be-all. If you’re not careful, the pursuit of wealth could end up costing you everything and making your life meaningless.
That’s why I believe the most important skill in this field is balance. Pursuing financial goals while also maintaining your physical and mental health, relationships, and sense of self. Pursuing financial success while maintaining a well-rounded outlook on life, valuing and developing identities and values that have nothing to do with wealth, and not letting the market eat you up.
I know, this is easier said than done. FOMO is real and the pace of innovation in this space is extremely fast.
So my advice is this: pursue your dreams by all means, but not at the expense of everything else that’s important. Set clear boundaries for your time and emotional energy. Profit along the way, and diversify your investments into assets other than crypto. Build a lifestyle that’s resilient to market booms and busts.
Most importantly, never forget why you are doing this in the first place.
Because when the dust settles and the bull market inevitably ends, you’ll understand that the short-lived dopamine rush from a rising market or the satisfaction of seeing your assets increase didn’t really matter.
It’s the relationships, experiences, and sense of purpose you build along the way that count.
So when we are chasing our dreams, don’t forget the ground under our feet, stay realistic and pragmatic. Because although cryptocurrencies may make you rich, what really makes you rich are the things that money can’t buy.
Star chasers, keep moving forward bravely.
But please be cautious and do not ignore potential risks.
