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Crypto Trading Psychology: How to Win with Emotionless Trading

A report states nearly $4 billion was lost in the crypto market in 2022. Even worse, 95% of traders consistently lose their money while trading. The emotional state of traders heavily contributes to why many lose money while trading. 

The two major emotions affecting traders’ psychology are fear and greed. These two emotions can lead to you making poor investment decisions by being afraid to invest or overconfident. Trading psychology is important because emotions can make you lose thousands of dollars at once, even if you are an expert in fundamental and technical analysis. 

With that in mind, this article will serve as a guide to teach you the meaning of trading psychology, the challenges traders face in managing their emotions, and how to win with emotionless trading. 

What is Crypto Trading Psychology?

Source: Arbismart

Cryptocurrency trading psychology is the emotional state of any trader when buying and selling cryptocurrencies. It is based on the theory that your emotional state will affect how you trade cryptocurrencies. As the introduction explains, fear and greed are the two major emotional states you are more likely to fall into when trading. 

For instance, when the price of a new cryptocurrency rises, you might be tempted due to greed to join the wave and buy the cryptocurrency. On the other hand, you might also be tempted to exit the market prematurely when you are supposed to wait for a moment to make more profits. 

All these emotions make up the trading psychology of any crypto trader, and they must be addressed before you attempt trading. But before you address these emotions, you must know the psychological challenges you will face as a crypto trader. 

Psychological Challenges faced by Crypto Traders


No one likes losing. Whenever they do, it comes with many emotions that can make a trader make the wrong decisions. If you are a trader, losing can damage you psychologically if it is not addressed immediately. 

When you lose while trading, you might be tempted to outwit the market by engaging in other trades, even in your messed-up emotional state. In most cases, you have a high chance of losing if you invest during the peak period of your emotional crisis. 


You might wonder how winning poses a psychological threat to traders. There’s a reason for that. When you win in your trades, it comes with so much joy that you might be tempted to engage in more trades. 

This is where greed comes in as you try to accumulate more from the market. In the high state of your happiness, you might make decisions that ruin all you have profited. 

Source: Business Insider

Social Media Hype 

If you are a beginner, there are chances that you may be affected by what is happening in social media concerning the crypto market. Especially on Twitter, the hype about certain cryptocurrencies can make you lose money. 

While trying to trade the crypto recommended on Twitter, you may lose your money to the market. This happens when fear and greed take over many crypto traders as they try to make money. 


Rumours are another psychological challenge you might face when trading in the crypto market. When you hear that a cryptocurrency will pump, you may invest in that rumoured cryptocurrency. However, it may result in losses.

Hearing and acting on rumours is a psychological challenge that has made many traders lose thousands of dollars. 

How to Master your Trading Psychology

Devise a Trading Plan/Strategy

Many traders in the crypto market don’t have a trading plan or an objective whenever they set out to trade in the market. They don’t even know how much they want to make; they don’t know how they will go about the trade or the strategies to apply. Nevertheless, you should have a clear and detailed trading plan that lets you know what to do anytime. 

Be Disciplined 

It does not end with creating a well-defined trading plan. What really matters is your ability to adhere to those rules you created. If, in the plan, you are expected to take a break after 3 or 4 hours of trading in the market, you should do so. Staying disciplined is a major factor that will help you win with emotionless trading. 

Take Regular Breaks 

One of the biggest mistakes you can make while trading is to continue even after taking losses. Taking a break from trading and reflecting on what you have done will help you clear your mind. Reflecting helps you to note where you made mistakes and how you can correct those mistakes when you trade again. 

Taking a break does not only apply when you take a loss on the crypto market. When you make massive profits while trading, you should also take a break and avoid investing more in the market. This is because whenever you win, your emotions might tempt you into trying to make more profits, and you might lose everything. 

Practice More 

Practice makes you better at what you are doing. In the same way, practicing how to manage your emotions whenever you are trading will only make you better at it. 

Importance of Emotionless Trading

Source: Upstox

For some people, the most important thing to learn while trading is fundamental or technical analysis, or how to read a chart. 

All these things are important, but learning to manage your emotions when trading can help you avoid losses and make even more profits. 

Even If you can conduct expert technical analysis but can’t manage your emotions, you will still lose a lot of money while trading. Emotions negatively impact your trading, so managing them helps bring more positivity to your trading.

Trade Smart On BingX Crypto Trading Exchange 

Fear and greed are the two primary emotions that can affect your trading psychology and how you trade unless you use a smart trading platform like BingX. 

BingX is the world’s leading social crypto exchange that offers unique trading experiences, including spot trading, futures trading, automated bot trading, copy trading, and zero-fee trading. 

With BingX, you can trade without emotions by letting the bot trade for you or copying expert traders. 


Join our BingX Community to earn and learn more about crypto, trading and the latest news!

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