Tips for Reducing Crypto Trading Fear

Despite cryptocurrency continuing to gain popularity, not everyone feels comfortable diving into this investment. It’s a relatively new and unknown asset that’s surrounded by question marks for many people, but that doesn’t mean it’s not an investment worth exploring. Similar to other cutting-edge technologies, cryptocurrency wasn’t immediately accepted with open arms. Maybe you’ve been meaning to get involved and research more about how it can benefit you, but you weren’t sure where to start. Our accountant for cryptocurrency is here to help guide you through any fears that you have and assist you in feeling confident in your transactions.

Why Are People Scared to Invest in Crypto?

Cryptocurrency skeptics are nervous to invest not only because they don’t understand crypto, but also because they believe it is too volatile. The trades are nonstop and faster than in any other market, leading to constant price fluctuations. For example, in 2017, the price of BTC rose from $1,000 to $20,000. By the time mid-2018 rolled around, the price fell back to $5,000. Still, this is an asset that isn’t going away any time soon and there are steps that you can take to feel more comfortable. Our team at Founder’s CPA has outlined some tips to help you overcome any fears that you have.

Tips for Overcoming Fear

Educate Yourself

Knowledge is power. One of the easiest ways to become more comfortable with cryptocurrency is through education. If you don’t understand the market and how it fluctuates, you won’t want to put your money behind it. Don’t just think of cryptocurrency as a digital currency, think of it as an asset that has overlapping characteristics with other traditional investments. If you see that prices are coming down and you’re tempted to sell, don’t panic. Know that the prices can swing drastically in short periods of time. Of course, you can always talk with an accountant for cryptocurrency for professional guidance.

Be Aware of Your Options

Even though Bitcoin is the most popular type of cryptocurrency, there are actually over 2,500 options at your disposal. Other popular options include Litecoin and Ethereum, but it could be worth researching the different options that you have beforehand. Don’t take this research lightly; you’ll want to do a deep dive to see whether you’re investing in something that is legitimate before putting your money behind something.

Learn From Previous Mistakes

Previous instances of panic, such as when you sold your Bitcoin in a moment of doubt, can provide learning moments for you. In reality, the price of Bitcoin sharply rose as soon as you sold your asset. Even though you likely don’t want to relive these moments, you must be able to reflect on them and learn from your mistakes.

Know That You Can’t Always Win

Even with the right education, you can’t be successful 100 percent of the time. The ups and downs of cryptocurrency are what make it both risky and rewarding. Go into your investment knowing that it’s impossible to be profitable at all times and to accept the losses as they come. In the same vein, know that losses can swing the other way eventually and result in wins that you can celebrate.

Seek Expert Help

Finally, seeking the guidance of an expert can help you overcome your fear. Many seasoned professionals study the cryptocurrency market and can help you navigate your questions. This is always a great strategy that can make you feel more comfortable with your investment.

See How an Accountant for Cryptocurrency Can Help

At Founder’s CPA, we know that you might not feel comfortable out of the gate with your cryptocurrency investments. Allow our team to step in and help you with cryptocurrency accounting and taxation. We can help with your accounting system setup, tax calculations, and so much more. Contact us today to get started.

Post by Curt Mastio
Jun 7, 2023 11:21:00 PM

Curt Mastio started Founder’s CPA in 2017 and currently serves as the Managing Partner of the firm. After obtaining both his Bachelor’s and Master’s degrees in accounting from the University of Illinois in Urbana-Champaign Curt started his career in Big Four public accounting. Shortly thereafter Curt served as the Chief Financial Officer of Storage Squad began his stint as an Adjunct Instructor at Northwestern University’s Farley Center for Entrepreneurship and has been teaching Accounting & Finance to undergraduate students for 6+ years. In his current role Curt oversees strategy, operations, and business development at Founder’s CPA. Further, Curt has experience working directly with 200+ startups and small businesses providing accounting, tax, and outsourced CFO services. His industry expertise lies in the SaaS, Blockchain, Marketplace, and Fintech industries. He has served as a key advisor working directly with startups that range from pre-revenue to companies generating over $30 million dollars a year in revenue. Lastly, he serves a key role working directly with the firm’s clients that have collectively raised over $200 million in venture capital funding to date. Curt is also an active advisor, mentor, and investor in the startup ecosystem. He has facilitated numerous workshops, webinars, and presentations to incubators and other startup-centric organizations. He is also an active mentor for Techstars in both Chicago and Iowa. Outside of his daily professional duties Curt is actively involved with Beat the Streets Chicago and was a founding member of its Young Professionals Board. His efforts in both leadership and community involvement were recognized when he was awarded the Illinois CPA Society’s Outstanding Young Professional Leadership Award in 2020. He was also a panelist at their annual conference in 2022 where he spoke about his experiences starting and operating a public accounting firm. He maintains an active Certified Public Accountant designation that he obtained in 2014. Outside of work, Curt can be found spending time with his friends & family including his dog Rufus. His hobbies include golf, boating, cooking, reading, and attending sporting events & concerts.