Crypto Winter May Take a Toll on Hodlers’ Mental Health – Cointelegraph Magazine

With so many struggling to maintain emotional well-being during this crypto winter, self-improvement and mental health experts can help you navigate the highs, lows, and soul-crushing experiences that a long-term bear market can bring.

Mental health professional Elizabeth Sterbenz and wellness thought leader Srikumar Rao discuss with Magazine how to cope with the weakening of crypto portfolios, move forward and illuminate intuitive happiness. Sterbenz is a licensed psychotherapist in California specializing in individual, couple and financial therapy. Rao is an international speaker and executive business coach with a PhD from Columbia University. He teaches a course at Northwestern University’s Kellogg School of Management that combines Eastern philosophies with modern business practices.

Learn how to ride a tsunami

Rao believes that crypto traders, developers and community members have been hit by a tsunami. They are struggling through a prolonged crypto winter that shows no immediate signs of warming up. They also celebrated a two-year NFT boom that was quickly followed by a devastating bust.

The community was recently stunned when major figures in the cryptocurrency industry, such as Sam Bankman-Fried and Do Kwon, were accused of fraud, discrediting the industry and harming investors.

And the hits keep coming. Just weeks ago, the US Department of Justice and other international authorities took down a Hong Kong-based crypto exchange and arrested its founder in Miami.

Rao believes that the bear market can be used as an opportunity to learn how to surf on top of the tsunami while calmly observing what is happening below. He says this can be achieved by accepting that winning is not a requirement for happiness. Happiness does not come from making the right trade or a lot of money. According to Rao, it is a false belief:

“The idea that you have to make something happen to be happy, it’s just false. But you believe it so strongly because you’ve never really thought about it for yourself. You’ve just been carried along by the mass hysteria.”

Sterbenz takes it a step further, suggesting that going it alone is unnecessary, especially in these tough times. “I think you have to be able to trust, you know, having a good financial advisor. It is an important part of your team.”

She believes that getting solid, objective financial advice will provide peace of mind. Relying on someone else to help evaluate trades and to make decisions about general financial situations provides a sense of being covered. “You can then put your financial worries aside and focus on your well-being,” says Sterbenz.

Rao argues that it is also important to recognize that cryptocurrency has no intrinsic value. Value is only what people think it is. A large number of people agree that a particular token has a particular value at a particular time, but the moment people no longer feel that way, the coin ceases to have the same value.

Rao says, “If you accept that upfront, before you make the investment, and you say what could have happened happened, and it happened when I made the wrong trade, that’s fine. I’ll recover. I’ll move on, and I never needed this to need to be happy in the first place.”

How to deal with crypto corruption shakeout

Many of the crypto community’s worst fears were realized when FTX imploded and the founder was arrested, as well as when Terra crashed and subsequent charges were brought against the former CEO. Uncertainty about the inevitability of stricter federal regulatory efforts further validated these concerns.

Crime is now, undeniably, part of the crypto ecosystem, just as it is part of the traditional investment arena. It’s a tough pill to swallow, and even meaningful regulatory violations are cause for concern.

Nevertheless, Sterbenz suggests that this is nothing to be ashamed of and that it does not mean participating in crypto is obscene or embarrassing. Comparing the situation to those critical of traditional investors after history’s biggest Ponzi scheme was exposed, Sterbenz says: “It’s also like saying, like Bernie Madoff, ‘I told you all these stocks were a scam. You should put your money in the mattress.'”

According to Sterbenz, it is important to separate the bad behavior of unscrupulous characters and simply accept that there will always be bad actors.

Rao believes that blaming bad luck or crypto losses on bad actors will not lead to happiness or peace of mind. He says that when the universe, or its participants, don’t follow the rules and things go the opposite way, it’s easy to assume that the sky is falling. Distress and misfortune can quickly follow.

“And you’re blaming an outside force. I’m unhappy because so-and-so did this, and he’s a straight-up scoundrel. And because he’s a scallywag, he’s now being investigated. But meanwhile, the markets have gone to hell!” says Rao. Instead, he suggests grounding yourself in the idea that you’re only involved in crypto because that’s where your path takes you. “Me playing this game is something I do because it’s my path in life, and I want to enjoy playing the game. I don’t necessarily need to win for it to give me satisfaction or joy,” says Rao.

That’s great, but I’m straight!

According to Rao, traders who have lost everything must accept that they believed something, perhaps their whole life, that turned out to be catastrophically untrue. Happiness cannot be found in a successful trade any more than it can be lost in a bad one.

Rao says, “What I have to do is not beat myself up and shoot other arrows at myself. Just admit that this was wrong. It was a sharp cut with a knife, but now that I’ve gotten it, I can see how clearly I was wrong. Let me pick up the pieces and not make the same mistake again. Tomorrow is a new day, and I don’t have to let today’s leftovers get married tomorrow.”

Although it’s not easy, Rao suggests looking at consciousness like it’s a flashlight. A flashlight illuminates what it shines its light on. “If you shine it on the big gains you once had and failed to sell, and now it’s all gone, and you’re back where you started, you’re shining your flashlight on your consciousness on something you defined as a mistake in life,” says Rao. That’s an ineffective strategy. Instead, he suggests shining a flashlight on what to do next. “You’re not starving, you’re not getting locked out and thrown out of the house — or even if you are, no one cares your hands in a vise while they rip your nails,” says Rao.

For those truly struggling with severe anxiety or depression, Sterbenz recommends therapy and believes that professional help can be a gateway to personal growth. If one does not experience a serious clinical need and therapy is not necessary, she suggests focusing on the concept of radical acceptance.

According to the Berkeley Well-Being Institute, radical acceptance is “accepting what is not in your control and embracing what is happening now in a non-judgmental way.” Radically accepting emotional or physical pain can reduce the suffering they cause. “If you were involved in any of the cryptocurrencies that have been affected by this, you can move on from there. Other people have also been affected by this. You made the best decision you could at the time, says Sterbenz.

Reach out for help

If crypto traders or holders experience thoughts of self-harm, Sterbenz says, “Get help immediately.” She suggests going directly to a doctor or calling a trusted friend.

The crypto community has previously shared resources such as international aggregators of suicide calls during bear markets when a number of hodlers who were underwater expressed harmful thoughts.

Regarding such thoughts, Sterbenz says, “They pass. It doesn’t feel like that when you’re in the moment. It doesn’t feel like the two to five minutes are going to end.” Therefore, she believes it is most important to have people around you who will do the best for you.

Sterbenz also believes that family and friends should not hesitate to reach out to loved ones who may be considering self-harm. She says that many people believe that talking about suicide makes it more likely that something will happen. “And that’s really not true,” says Sterbenz. She recommends asking those who are struggling directly if they are thinking about harming themselves. “It won’t make them more likely to do anything.”

The Lady of Crypto, a trader and Twitter influencer, also advocates for mental health. She tells Magazine, “It was an incredibly tough time in the crypto space and so many people were affected. I’ve had friends who have struggled and I’ve seen how people can become shadows of themselves and be pushed to the edge. To see these messages on Twitter are truly heartbreaking. No one should ever be in a position where suicide is their only option. I just thought if I could keep my inbox open and make a difference for one person, it would be worth it.”

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So, where is the happiness after all?

According to Rao, one cannot look for happiness. It cannot be detected in a favorite altcoin, and it will not suddenly appear when Bitcoin finally breaks $100,000. Rao believes that happiness is not something to look for. The more you seek happiness, the more it runs away. Happiness just happens. It is not an aspirational goal, but emerges organically by adopting a certain mindset.

“The mindset you’re going to have as a broke crypto trader is: Okay, I’ve blown a large chunk of my fortune and net worth. It’s very unfortunate, but that’s the way the universe worked. And I can now cry myself to sleep every night and make matters much worse, or I can shine my flashlight on my consciousness at the fact that I’m still healthy. I’m still whole. I have learned a very expensive lesson, says Rao.

Focus on what to do next. Even if yesterday’s red light continues to insistently try to capture one’s attention, Rao suggests recognizing this as mental chatter. Instead, just focus on what to do next.

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Mitch Eiven

Mitch is a writer who covers cryptocurrency, politics, the intersection of the two, and a handful of other, unrelated topics. He believes that crypto is the future of finance and feels privileged to have opportunities to report on it.