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An often overlooked aspect of crypto market volatility reputation is the impact sudden market changes have on the mental health of traders and investors.
Day trading, or a pathological trading addiction, is already well known among stock and commodity traders and has been extensively documented by medical professionals. There are even rehab programs that specialize in treating day trading addiction.
The cryptocurrency market has created its fair share of trading addicts due to the potential for “life-changing” money for those who are lucky or knowledgeable enough to get it.
To better understand the mechanisms of cryptocurrency trading addiction and how to recognize it, the magazine consulted Tony Marini, a senior specialist therapist at Castle Craig Rehabilitation in Scotland, and a New York-based private practice. We spoke with Family co-founder Aaron Sternlicht. Addiction specialist.
What is cryptocurrency trading addiction?
Sternlicht describes cryptocurrency trading addiction as “a cryptocurrency addiction despite its negative impact on personal and/or professional areas, including financial loss, relationship disruption, career problems, and mental health. Persistent or recurrent pathological obsessions and compulsions to engage in the behavior of investing or trading.” cause problems and other negative consequences. ”
He believes that addictive behavior goes far beyond just buying and selling tokens. Problems can arise when a trader’s time is devoted entirely to chart analysis, market research, data review, fundamental analysis, and investor sentiment.
It’s all about neurotransmitters
The body produces a neurotransmitter called dopamine, which the nervous system uses to transmit messages between nerve cells. Sternlicht said that when the price of a cryptocurrency rises and someone makes a successful transaction, dopamine is released in large amounts, bringing a sense of pleasure.
“The volatility of cryptocurrencies and the fact that they can be traded 24/7 can lead to a periodic overdose of dopamine, making them much more addictive than trading other assets such as stocks. higher,” Sternlicht says. Over time, those who have become addicted to cryptocurrency trading will rely on it for excitement and pleasure.
Sternlicht says some stimuli that release excessive amounts of dopamine, such as sex, drugs, video games, and social media, are likely to become addictive. He believes that successful cryptocurrency trading falls into that category because prices are highly volatile.
Conversely, other natural pleasures, such as eating a good meal or watching a beautiful sunset, can be less stimulating and less appealing. “People become engrossed in their chosen stimuli and lose interest in other life experiences that they previously found enjoyable, because pleasure-seeking is the brain’s natural tendency,” says Sternlicht. says Mr.
Marini points out that not everyone becomes a compulsive gambler, cocaine addict, alcoholic or cryptocurrency addict. However, he believes that 3% of him in the UK are compulsive gamblers. The UK Health and Safety Agency (formally Public Health England) Estimate About 2.2 million adults are either problem gamblers or are at risk of addiction. Both Marini and Sternlicht agree that cryptocurrency addiction is very similar to gambling addiction and should be treated as such.
With 33% of the country participating in the cryptocurrency market, Marini fears we are only seeing the tip of the iceberg. “We have noticed more and more people who are really attracted to cryptocurrencies,” Marini said.
Since 2016, Castle Craig has welcomed over 200 cryptocurrency addicted customers. Marini believes that cryptocurrencies will attract people much faster than gambling due to their high volatility. “They were constantly looking at prices because prices are always fluctuating. And now, with over 20,000 different cryptocurrencies in existence, they are very much into observing cryptocurrencies on various media sites. time, and it’s becoming a problem in their lives,” Marini said.
Still, most people can trade cryptocurrencies without worry, according to Sternlicht. “Although most people are able to invest and trade in cryptocurrencies without developing morbid problems, some people develop widespread disorders related to trading behavior that lead to addiction. ,” says Sternlicht.
Who is at risk?
There’s no way to tell exactly who will become addicted to trading cryptocurrencies, but Sternlicht says that people who frequently interact with cryptocurrencies, who have experienced other addictions, or who have had a problem gambling experience. I think people are more susceptible to it. A family history of addiction, underlying mental health problems, and impulsivity or risk-taking personality traits can contribute to addictive behavior in traders.
According to Sternlicht’s experience, crypto traders are often well-educated and financially savvy. They feel they have the upper hand in the market and know things others don’t. “For example, we may spend a lot of time researching the fundamentals of a particular project, or we may be highly skilled at analyzing charts, macroeconomics, market sentiment, and other speculative measures. This is known as the “illusion of control”. ”
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In a 2014 study, researchers from the University of Deusto and the University of London said, “The illusion of being in control consists of overestimating the impact of our actions on outcomes that we cannot control.” . According to Sternlicht, that false sense of security could encourage traders to take more risks and trade more often. When traders feel they have an edge, they are more likely to take riskier or bigger trades and become addicted to trading.
Marini created the “Cryptocurve”, which charts the lifecycle of this kind of risky behavior. Not to be confused with the well-known “Cryptocurrency J-Curve,” which models the market value of cryptocurrencies over time, Marini’s cryptocurrency curve is a metamorphosis of the “fulfillment” and “desperation” of dependency trading. Visualizing the evolution to “realization”. “Recovery” and “Growth”.
![What To Look Out For And How It Is Treated – Cointelegraph Magazine 8 image1](https://cointelegraph.com/magazine/wp-content/uploads/2023/05/image1.jpg)
![What To Look Out For And How It Is Treated – Cointelegraph Magazine 9 image1](https://cointelegraph.com/magazine/wp-content/uploads/2023/05/image1.jpg)
How do I know if there is a problem?
According to Sternlicht, warning signs include failure to stop or mitigate trading, feelings of guilt and shame that come with thinking about cryptocurrencies when you’re not trading, and loss to loved ones. This includes the hiding of Lying, stealing, selling things, or borrowing to keep a deal going is also a red flag.
One of Marini’s clients, who works for a financial company, embezzled $1.5 million in Bitcoin. He then lost his $1.2 million of the stolen funds. Another customer who visited Castle Craig for substance abuse and was able to sober afterward earned €500,000 on cryptocurrency trading. Two years later, the client returned to the clinic with a drug and alcohol relapse and lost all his cryptocurrency.
Other signs of addiction include spending money allocated for living expenses on cryptocurrencies, prioritizing transactions over relationships and career opportunities, poor concentration, and loss of interest in non-cryptocurrency activities. , difficulty sleeping due to trading or trading-related activities.
treatment options
For patients requiring outpatient care, Sternlicht tailors treatment to each patient’s needs. He doesn’t have a one-size-fits-all approach, but he does have a general and modifiable framework. After a detailed assessment by his team, a customized treatment plan is created that includes therapy, coaching, psychiatry, family/couples counseling, financial monitoring, sleep, exercise, nutrition monitoring, daily check-ins, and more. will be Drug and alcohol tests may also apply. Sternlicht also integrates mindfulness and holistic therapy.
Financial monitoring is a key component of Sternlicht’s approach. “We recognize that it would be beneficial for all of our crypto-addicted clients to set up a financial monitoring system for their assets, including bank accounts and trading platforms (if the client is still active). Digital wallets are also being considered,” says Sternlicht.
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Sternlicht believes that overseeing assets, and in some cases temporarily removing control of those assets from clients, allows individuals to take responsibility and focus on recovery. This financial oversight can be done by a trusted friend or family member, financial professional or Sternlicht staff.
During the session, clients will learn to identify trading triggers and establish coping skills to refrain from trading, build trust and set boundaries in relationships, or deal with mental health issues and trauma. may focus on
Teams track sleep, nutrition, exercise, and digital usage between sessions. “Restoration is like a puzzle with many pieces put together, and the more pieces put together, the more likely a person is to live a prosperous and successful life,” says Sternlicht.
Marini said Castle Craig treats cryptocurrency addiction as a form of gambling addiction. They combine cognitive behavioral therapy with his 12-step approach. The first step is to admit that there is a problem. “I am powerless over this addiction and it is throwing my life out of control. You can see that it’s in,” says Marini.
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The 6-week residential program includes one-on-one therapy and group therapy. Marini believes group therapy is important for validation and unity. “Group work makes you feel less alone because you identify with someone else. One-on-one therapy is great, but group work is probably the biggest part of it,” Marini says.
According to Marini, treatment includes equine therapy, art therapy, and important holistic practices. Recovery also focuses on avoiding post-treatment relapses and interdependence on substances. For example, Marini suggests that the volatility and 24/7 nature of cryptocurrency trading may make some people turn to amphetamines to keep them awake longer.
Ultimately, Marini believes that recovery is about discovering oneself and understanding what addiction is and why it causes certain behaviors.
“It’s about finding yourself again. It’s so wonderful. We’re doing so much of it.”
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