What is greed? The five deadly passions in cryptocurrency trading

In Buddhism, greed, anger, and ignorance are the five poisons of the mind; they are the deepest negative emotions. When these poisons are uncontrolled, they can seriously affect investment decisions, especially during critical phases of a bull market. Understanding these five poisons is key to avoiding self-inflicted financial mistakes.

Greed: Chasing quick profits

Greed represents attachment, desire for quick gains, and fear of missing out. In the cryptocurrency market, investors driven by greed often buy at the highest prices, hoping for double profits to continue. They do not conduct thorough research but follow the crowd. When prices start to slightly correct, their greed intensifies, leading to impulsive decisions.

Anger: Frustration when facing failure

Anger manifests as rage and frustration when things do not go as expected. During the early and middle stages of a bull market, investors frequently encounter small losses. When anger arises, they may curse analysts, panic sell, or even withdraw from the market entirely. This is a hidden mistake of panic selling, causing them to miss subsequent recoveries.

Ignorance: Lack of knowledge and blindness

Ignorance, or simple unawareness, lies outside the scope of learning. Investors influenced by ignorance never learn about blockchain technology, supply and demand mechanisms, or macro factors affecting prices. They only follow social media information and believe rumors. Ignorance leads to baseless decisions and continuous lack of understanding.

Arrogance and Doubt: Pride and hesitation

Arrogance is excessive pride, looking down on others, and overconfidence in one’s judgment. Some investors, after making small profits, consider themselves experts and ignore risk management rules. Doubt involves hesitation, indecisiveness, and excessive suspicion. Those dominated by doubt constantly change strategies, missing main trends due to hesitation.

How to overcome the five poisons in a rising market

To avoid being controlled by greed, anger, and ignorance, investors need to develop personal discipline, create clear trading plans, and adhere to them flexibly. Continuous learning, setting risk limits before trading, and controlling emotions are essential steps. By understanding these five poisons of the mind, you will achieve inner peace and make wiser investment decisions.