How money changes you
Most of us are in crypto for only one reason, but we get much more than what we signed up for.
This is my story. Yours may be different.
It is very subtle how it happens, but it will surprise you at key moments.
TLDR at the end.
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We underestimate our capacity to adjust and adapt to new circumstances, and then, normalize them. This is especially true when it comes to money.
When you make your first real profit in crypto that becomes a memorable event which will not be matched even if years later you make 10x or 100x more. That’s because we quickly get used to easy money in crypto. What was once a dopamine rush, quickly becomes meh.
You join crypto for some quick profits, but then greed and dopamine take over. That’s a dangerous mix with catastrophic consequences for your well being. More on that later.
When I made my first $50 on the stock market, I was so happy. I was thrilled that I was making a passive profit while working a regular job. But I soon realized the stock market was celebrating a small pump of a few percentage points and there was a new market emerging with more potential.
Crypto
I was lucky to enter crypto early before altcoins became what they are today. When I started in 2014, there were barely any altcoins and buying them was hard.
Most exchanges focused on Bitcoin back then and the idea of stablecoins like Tether was just emerging. At first, I was attracted to Bitcoin since it was the first one to get any level of exposure, not crypto.
I studied it and realized Bitcoin is actually something unique. So I bought it. But soon after, the market started to change.
Ethereum launched, Litecoin was getting listed on exchanges, and XRP promised to replace SWIFT. Things were changing fast.
I fell for it
I bought altcoins.
Altcoins captured my imagination and I ignored Bitcoin for a while. Back then, it was still under $1,000. That’s a 100x return versus today’s price.
Nevertheless, I am grateful for the lessons learned.
For example, I rode XRP from 10 cents to 3 dollars only to see it crash by 96%. That was my first real experience with losing six figures that I had in my hand for a short period of time.
Trust me, you remember those moments too and it took a few months to process that. Such moments are equally important and you also adjust to them fast.
Just give yourself time.
This is a good thing when it comes to managing wins and losses later. You can more easily control greed and dopamine, because it is no longer the first time.
This will make you a better investor or trader over time.
Persist
The next thing that happens is that your perception of money changes.
$10 becomes the new $100
$100 becomes the new $1,000
$1,000 becomes the new $10,000
$10,000 becomes the new $100,000
If winning or losing $100 was a big deal early on, a few years later daily swings of $10,000 or more in your portfolio won’t change much about your day. This progression is important to handle later stages when you hit say your first million.
But it is also a danger.
That’s because you may treat $100,000 as $100 in your new mind that got adjusted to more zeroes.
This is wrong, because no matter how much money you have, $100,000 is still a lot. That’s why some become detached from reality and gamble such figures as if they are $100.
This leads me to personality changes.
You will change as you grow rich
Who you are will amplify by 10x if not more when you get a taste of money. That includes both your good and bad traits. If you are generous, your tips will increase. If you are greedy, your leverage will increase with predictable outcomes.
The more things you change about your life once money starts coming in, the more dangerous the transition. It will also expose a lot of things you actually never liked. You may also take bold decisions as you finally feel free to do them.
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The less things you change as you grow rich will indicate that you were actually happy in the first place and this will only compound that happiness further. This is a great place to be when you also incur losses, because your baseline never really changed.
Generally, happiness comes from removing problems, not adding zeroes. Adding zeros makes a marginal improvement to your happiness after a certain net worth.
Time becomes the most valuable asset
Bitcoin is a unique asset, but nothing beats having full control over the ultimate asset.
Most people sell their time for money. Rich people trade money for more time.
Having control over your own time also happens to make you happier. More than any amount of money. That’s why people that are poor, but own their time and allocate it as they please, are generally happier than a corporate slave that may be rich.
This also removes bosses, schedules, and deadlines from your day. These actions improve your happiness by quite a margin, especially if you replace it with meaningful connections with other people, say your family.
You generally become rich only once or twice
Don’t waste it. Nobody became poor by taking profits.
Take that win and protect it at all costs. If it’s life changing, do not hesitate to sell and own your own time from that point forward.
Crypto stands out since people get a chance to get rich every four years. We’re exactly in that ‘get rich quick’ part of the four year cycle today. However, if greed gets in the way, you may have to do it all over again.
Regardless of your circumstances, I believe there will be at least one more cycle before the end of this decade.
You are still early. You can still make it.
That also involves holding a position in Bitcoin.
Why are you here?
If the goal is to become rich, you’ve got a pretty good shot at that by being in crypto. If your goal is to be happy, you don’t need crypto. You need other things.
Either way, you can’t go wrong with Bitcoin. That’s the closest thing you’ll get to buying freedom in this life.
TLDR & Tips to Remember
Crypto will make you lose touch with reality in terms of money
Money will amplify who you are. Make sure your good traits win
Don’t fall for the altcoin mirage, it does not last and will hurt you
Even if you get burnt, persist. You will get better at it over time
Time is your most valuable asset. That’s not clear until you’re rich
You still got plenty of time to make it big. If it’s life changing, sell
Bitcoin is not crypto. It’s above it. Never put them at the same level
Bitcoin is the closet thing you’ll get to buying freedom in this life
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All info is provided for educational purposes only and is not financial advice.