The thought of cryptocurrency that appears in the mind of most people in Nigeria concerns money. We observe how young people purchase cars, rent large apartments, or fly to other countries and all with crypto-profit. Screenshots of massive win are common on social media. Crypto trading appears to be a golden ticket to get out of poverty to many. However, behind the shining success stories lies an elephant in the room that many traders do not discuss the emotional cost of crypto trading.
Trading in cryptos is not whether the numbers go up and down. It is an emotional game, fear, greed, hope and regret. These feelings, when unchecked, may influence the psyche, psycho-social relationships, and even physical health. I want to analyse some of the silent costs of this form of trading.
Constant watching is one of the largest emotional battles. Cryptocurrency does not close, like the stock market. It operates 24-hours seven days a week. The traders sense the necessity to follow prices night and day. Some of them get up at 2 am. merely to see whether their coin has been up or down. The practice robs one of sleep, causes anxiety, and in the long run, the trader becomes mentally drained by it.
Then there is the fear of money lost. Crypto market is highly volatile. What is a N200,000 coin today can drop to N100,000 in few hours. This sudden turn continues to keep traders at the edge. Once the price goes down they panicked. They have wildly racing hearts and sweaty palms and make hasty choices. Others sell too fast in fear, but later they regret. Some of them take a little longer to cling on to hope of a miracle and incur greater losses. This fear all the time is an emotional burden.
Another silent cost is greed. Cryptocurrency tends to make a person wish to get more. A trader who realises N50,000 today can have N100,000 as his goal tomorrow. But avarice in most cases is a losing game. It is more painful to lose having won than the happiness of the initial acquisition. This unending pursuit keeps most traders agitated, dissatisfied and never content even when they have sufficient.
Relationships are also influenced by trading. Nigerian young people now spend hours staring at charts, they do not talk to their family, do not eat, or do not do the job. At the time they make a loss, frustration is released. They can bark at the loved ones or become indifferent. Others even borrow money among friends or relatives to trade and once they lose it, trust is destroyed. The emotional shock diffuses past the trader, to those who are nearest.
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The losses are intolerable to some of them. They spend on rent, fees in schools or even savings in the hope of multiplying it only to lose it all. The shock causes them to sink into depression. They seclude themselves, refuse to make calls and lose interest in the everyday life. In Nigeria, today more and more young people are reported to end up in depression due to crypto trading. Some go as far as to inflict self-injury on themselves when they are unable to get back what they lost.
There is addiction as well. Trading crypto is like gambling. The thrill of making a trade and sitting back to wait its outcome can be addictive. Most vow to themselves to quit but the following day, they are on Binance or Bybit again. The emotional chain of guilt and shame of the loss, but still coming back keeps them in the trap as another one.
Social media makes it worse. Social networks such as Twitter and Telegram are full of traders who boast of profits. They present the days when they earned millions but conceal the days when they lost lots of money. A poor trader surfing those posts feels like a loser. They put themselves against the others without realizing that others also have their losses. It is a social pressure that creates frustration, jealousy, and self doubt.
Then what can be done to lighten this emotion load? The first step is balance. One should not invest more than he/she can afford to lose. This brings down the weight of the fear. Second, it is significant to have time limits, i.e. when to visit the market and when to sleep. Charts should not precede health and sleep. Third, it is beneficial to discuss the hardships. It does not have to allow depression to dominate by sharing the feelings with friends, family members, or even counselors.
More importantly, traders should know that one is not going to accumulate wealth in one day. Crypto is not to be regarded as the sole hope. Education, skills, businesses and safer investments are still important. Traders can diversify the risk of relying on a single risky market by using crypto in combination with other directions.
Crypto trading is not only charts and profits, which is the end of the day. It is a battle of emotions. Behind each trade there stands a human being who is under stress, in fear, and hope. The emotional price is secret: anxiety, restless nights, destroyed relationships, addiction, and depressions.
With a growing number of Nigerians venturing into this financial world, it is high time that we come out cleanly to discuss the psychological aspect of trading. It is a big thing about money, but peace of mind is precious. When we learn to protect our feelings when exchanging, we will not get ruined by the same thing that we believed to be our savior.
3.639 SRY