Take a Break When Possible: Research Links Crypto Trading to Elevated Stress Levels

Recent research presented in the Journal of Mental Health Policy and Economics demonstrates that individuals who trade cryptocurrencies tend to have a poorer quality of life, diminished sleep, and elevated stress levels in comparison to non-traders.

Research Implications: This study brings attention to the potential psychological dangers linked to cryptocurrency trading, underscoring the necessity for greater support and awareness for individuals grappling with these issues.

Study Insights:

• A sample of 437 Turkish academics indicated that those engaging in crypto trading not only rated lower in life quality metrics but also suffered from poorer sleep and heightened stress in contrast to colleagues not involved in trading.
  • Personality characteristics common between crypto traders, high-risk stock traders, and gamblers have been identified.
  • A piece from Forbes referenced a review from Addictive Behaviors which likened the crypto market’s volatility and always-open trading hours to tendencies observed in gambling.

Quantitative Findings:: Highlighted within the study was the stark statistic that between 70% and 80% of day traders are operating at a loss, with consequent financial pressure.

Conclusions:

• The propensity for excessive gambling, gaming, and internet usage is more pronounced among crypto traders.
• Those engaged in trading also report elevated levels of psychological strain and a greater sense of isolation compared to non-trading individuals.

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Stress Management Techniques:

• Recommendations for traders to manage stress include adhering to trading caps, maintaining strict budgets, and utilizing financial losses for tax deductions.
• Professionals in mental health advise the cultivation of emotional resilience, diversifying activities beyond trading, and seeking supportive trading communities to alleviate stress.

Expert Recommendations: There is an emphasis from researchers on the necessity of public health policies to confront the psychological ramifications of trading activities.

• The call to action also extends to societal recognition of the challenges faced by crypto traders, as trading draws individuals who may lack experience, heightening mental health hazards.
• Immediate measures are called for to tackle the stress and potential burnout prevalent in the expanding community of crypto traders.

Underlying Concerns: The incessant and unpredictable nature of cryptocurrency trading parallels gambling pressures, augmenting emotional and psychological distress among traders.

Future Outlook: The findings of the study may incite further investigations into the mental health impacts of cryptocurrency trading and prompt trading platforms to install safeguards for their users.

Additional Reading: In a recent development, the Philippines dropped to 8th place in the 2024 Global Crypto Adoption Index.

The full report is featured on BitPinas: [Take a Break When Needed] High Stress Linked to Crypto Trading — Study

Discover more about what’s happening in the realm of Crypto in the Philippines and around the world.