This sucks.

It’ll be fun, they said.  You’re gonna get rich, they said.  Crypto is a game-changer, they said.

And now look.  The money you put in is dropping like a stone with a lead weight attached to it.  The crypto markets took a massive dump, and now you’re tempted to sell everything you put in, at a serious loss, just to stop the bleeding.

But before you do… hear me out.

 

In times like these, ask yourself one important question:  Why did I get into crypto in the first place?

If you said “to make a quick buck” or “because my homie said it was the thing to do,” then… you may be in it for the wrong reasons.  This place is hard on people, especially those who aren’t used to the wild volatility.

To be clear: it’s more than ok to cut your losses and walk away from the space if you’re not comfortable with such unpredictable swings.  Even though I was told how suddenly crypto could move, I was totally unprepared mentally for the dips at first.  And that’s ok.

However, if you see something special that crypto has to offer to the world, this is a valuable opportunity to become involved in shaping that world.

 

This is a long game we are playing here.

I tend to think of the cryptocurrency space like it’s my infant child, which it really is in the grander scheme of this financial system.  That child needs love, care, and time to really develop into the full-grown person that will one day have a serious impact on the world that raised and nurtured it.

I wouldn’t expect my newborn to immediately start crushing household chores or throwing down on the rent (though that sure would be nice).  Those things take time to develop, and we as parents need to have patience and take steps every day to foster that growth.

In terms of crypto, I believe this baby will not only grow but grow into an undeniable, world-changing presence. Of course, it will take some time, and we’ll have many highs and lows until that time comes.  But if we can enjoy the moment and savor this ride, the satisfaction at the end of the day for a job well done will have made it all worthwhile.  This I truly believe.

 

If the dips are stressing you out, consider this.

Our lives are complex, multi-faceted, and filled with day-to-day responsibilities.  We don’t need the ups and downs of the crypto markets to add any needless stress to our already action-packed lives.

If, at any point, crypto has you feeling stressed, ask yourself a few questions.

 

Have I put in more than I’m willing to lose?

It should go without saying that crypto is a volatile world, with daily double-digit swings in either direction being just another day in the markets.  And while I’m incredibly bullish on the future potential of crypto and decentralized finance (Defi), I also acknowledge the risk that comes with it.

With that in mind, I urge you never to put in more money than you can afford to lose, period.

Whenever I put more money into crypto, two things happen.

1.  I hope for the best, confident that my research on this purchase will one day yield positive results.
2.  I pretend that the money I just spent is gone forever.

There are times I can’t buy the dip, and that’s ok.  More dips will come, trust me.

Financial responsibility means looking toward the future and being smart about the present while preparing for the unexpected.

 

Am I checking my portfolio too often?

I have to admit… I’m totally guilty of this one.  Especially when times are good, watching my portfolio rise gives me a rush that’s hard to find anywhere else.

On the other hand, when things are trending down, it can be a serious drain on my mental, physical and spiritual energy. So I usually just put my phone down in times like these, take a deep breath, and remember to be present with my wife and family.

They need me here, not off in la-la land being gloomy about the most recent price dip.  That doesn’t do anyone any good.

Crypto can be compulsively alluring, and it’s also great to take a break every once in a while. But, as I said before if you haven’t invested more than you’re willing to lose, these price swings really don’t matter much anyway.

 

Are my expectations unrealistic?

When you just get involved in crypto, and a coin literally doubles overnight, that can create a dangerously unrealistic set of expectations in your mind.

I bought my first crypto in September of 2017.  Not even two months later, the price of bitcoin went from $3k all the way up to $20k.  And here I am, walking around thinking that I’m the biggest genius ever to walk the face of the earth.

Well, Chris-the-Genius got a real wake-up call when the price went down the tubes for the next several years, totally erasing all the gains I’d made in my first few months in crypto.  While I learned a valuable lesson in humility there, I also learned that having an eye on the long-term prize is a helpful way to see this world.

I held on tight because I had made up my mind from the beginning that I was in it for the long run, that I really believed in this thing.  I knew it could change the world, and while the price plunge really did suck, it’s just a bump in the road.  After all, I still had the same amount of crypto in my wallet.

In the end, it comes down to your expectations.  If you expect crypto like bitcoin to double overnight, you might be setting yourself up for failure.  But if you can hold on for the long term, I believe you’ll be glad you did.

 

When in doubt, zoom out.

We tend to only focus on what’s right in front of us, including price. So if you just look at the short-term picture, things ain’t exactly sunshine and rainbows.  But then… zoom out.

Here’s a look at Coinbase’s bitcoin charts: the last month, the year, and the all-time price movement.

Wow.  Here I am, sweating a 36% dip while it’s sitting at over $36k?  It’s up over 250% on the year and 35,000% since this chart started tracking it?

If that’s not some serious perspective, I don’t know what is.

 

The moral of the story?

Don’t sweat the dips.  Buy the dips.

I like to think of the dips as a fantastic opportunity to get more crypto at a sweet discount.  As they say, BTD: Buy The Dip.  Or, “BTFD” if you wanna get a little sassy, like our buddy Tyler Winklevoss here.

If you believe in the long-term promise of crypto and are willing to put in the work, you’re in a great position right now.  For my part, I just continue to buy what I can afford, only check my portfolio on occasion, and remember always to stay rooted in the present with a hopeful eye on tomorrow.

These dips ain’t nothin.’  I see mountains in our future, y’all.

BTFD.

 

Stay golden.

 

Hodl? Sats? Bullish? If the language of crypto has ever left you scratching your head, I got you covered. Check out my crypto lingo breakdown.

What are some ways you deal with the dips?  Leave a comment below.