Hidden forces behind the placement of the encryption: Understanding the role of emotions
The cryptocurrency was an example of a high feeling of emotions in the economic decision -Das. Fast price fluctuations and unpredictable market trends have questioned many investors whether their emotional prejudices are driven by their purchase decision. In this article we deepen the psychology behind the decisions of cryptocurrency and examine how emotions play an important role in the design of the behavior of the investors.
Emotional roller coaster: Why feelings are important
Emotions can be both a blessing and a curse in the financial decision. On the other hand, emotions such as fear, greed and excitement can lead us to invest more or less than we do when logic and analysis have dominated the roots. On the other hand, emotions can be misleading by destroying our judgment and creating impulsive decisions.
The emotions in the following areas are particularly obvious on the cryptocurrency market:
- Risk Aviation : Some investors can keep cryptocurrencies too unstable or unsafe, which means that they invest completely due to losses.
- Gier : The promise of high yield and fast appreciation has attracted many investors in excessive investments in cryptocurrency and ignored careful signs such as market volatility.
- FOMO (fear of the lack) : Social Media platforms have created a Fomo culture in which enthusiasts often prioritize the next high price for rational analyzes.
cryptocurrency psychology
What drives these emotional reactions? Here are some psychological views:
- Confirmation development : Investors try to find information that confirms your current views and at the same time ignore or underestimate the contradicting evidence.
- Loss transfer : Fear loses more than the one achieved can lead to cryptocurrencies at the beginning of the capital of investors to search for the following major advantages.
- Emotional affection
: Cryptocurrencies often cause strong emotions such as tension, euphoria and fear, which makes it easy for investors to invest emotionally in the market.
Effects on investment decisions
These emotional factors can influence the decision decisions for encryption currency: decisions:
- Social Media : Social -Media platforms have created a snowball effects in which enthusiasts strengthen their views from likes, shares and comments.
- Sensory experiences : The visual and hearing stimuli of social media, online forums and news agencies can create a feeling of excitement or euphoria about cryptocurrencies.
- Personal connections : Investors often form emotional places with their favorite cryptocurrencies, which means that they stick to them for longer than necessary.
Mitage emotional effects
Although emotions are a natural part of the investment process, there are ways to relieve their effects:
- Diversification : Apply investments between different assets and currencies to reduce market fluctuations for every investment.
- Training : Stay up to date with market development, regulations and risks before investing decisions.
- Risk management : Set clear goals, risk of risk and stop loss levels to avoid impulsive decisions based on emotions.
Diploma
Emotions play an important role in the design of the cryptocurrency decisions. While the high reward and uncertainty of these markets can be attractive, it is necessary to identify these emotional factors and take measures to relieve their effect. If we understand how emotions influence the investment behavior, we can make conscious decisions that correspond to our financial goals.
recommended to read:
- Dan Arietyn Psychology
- Fear, greed and risk , written by Robert J. Shiller
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