Almost everyone has heard of cryptocurrency. Cryptocurrencies, like Bitcoin, are digital currencies that don’t rely on banks to secure transactions. Cryptocurrency has become increasingly popular recently, with 16% of Americans reporting investing in it[1].
As cryptocurrency trading rises, it’s essential to talk about how this activity can affect mental health. Because crypto-trading is unique, it presents unique challenges even in the investment world. Some people who trade cryptocurrency may develop an addiction similar to gambling addiction.
Here’s how the ups and downs of cryptocurrency value can affect mental health and how to seek support if you’ve been affected.
How does cryptocurrency affect mental health?
At face value, cryptocurrency trading doesn’t appear to be harmful to mental health at all – especially if you don’t understand it well. However, cryptocurrency differs from general investing in one striking way: it’s much more volatile. The value of crypto drops by 50% regularly, which can make it much more unpredictable – and stressful – than ordinary investing[2].
Reports are now showing cryptocurrency and poor mental health are connected. In one Finnish study, crypto traders reported higher levels of both psychological distress and loneliness than people not involved in cryptocurrency[3]. In another study, trading frequency was linked to higher rates of depression and anxiety[4].
Some specific factors that play a role in mental health include:
Ups and downs: Cryptocurrency is one of the most volatile investing methods. Traders may make a lot of money one day only to lose most of it the next. This can cause severe mood shifts, and traders may develop mood disorders like depression.
Significant financial loss: Although wins are possible, most cryptocurrency investors are expected to lose their initial investment. Substantial financial loss and poverty are associated with many mental health problems, including depression.
Stress and anxiety: Knowing you have your money invested in such a volatile market can cause extreme stress and anxiety. An inherent risk is involved in trading this way, and not knowing what the future holds can be incredibly stressful.
Obsession: Some crypto traders become so obsessed with watching the market that they forgo other essential activities, including sleep, hygiene, and connecting with friends. Crypto trading starts to look like an addiction, which we’ll describe in more detail in the following section.
What is cryptocurrency addiction?
Cryptocurrency also shares many similarities with gambling addiction. People who trade cryptocurrency are risk-takers. They don’t invest once in cryptocurrency and withdraw the funds decades later. Many spend hours every day monitoring markets and making trades – just like those with a gambling addiction.
Some other similarities between problem gambling and cryptocurrency trading include:
Borrowing money
Spending more to recoup losses
Seeking novelty and risk
Impulsive behaviors
In one study about cryptocurrency’s impacts on mental health, a participant was quoted as stating: “I would say it was like [an] addiction because that urge to try to invest in everything consumed me. I [kept] having that urge frequently because when I look[ed] back at what [I’d] lost, it kind of motivated me to keep on trying with the hope that someday [I’d] be perfect. Someday [I’d] get to recover my losses.[5]”
Although it isn’t officially recognized as a mental health disorder, experts are saying cryptocurrency addiction is a genuine problem that needs to be addressed.
Some signs you may be experiencing cryptocurrency addiction include:
You spend excessive time checking cryptocurrency prices, trading, or researching.
You’ve been neglecting personal or professional responsibilities in favor of cryptocurrency activities.
You experience anxiety, agitation, or mood swings when unable to engage in cryptocurrency-related activities.
You continuously invest more money into cryptocurrencies despite financial consequences.
You find it difficult to control or stop cryptocurrency-related behaviors despite wanting to cut back.
Your relationships with family or friends are strained due to preoccupation with cryptocurrencies.
You feel a rush of excitement or euphoria while trading cryptocurrencies.
You use cryptocurrency as a way to escape from or cope with stress, anxiety, or depression.
You ignore or downplay the negative impact of cryptocurrency use on your mental health, finances, or other areas of life.
You experience withdrawal symptoms such as irritability or restlessness when not engaging in cryptocurrency activities.
How to overcome cryptocurrency addiction
If you have become addicted to trading cryptocurrency, there is a way out. Just like any type of gambling or other behavioral addiction, cryptocurrency addiction can feel like it’s taking over your life. But with proper support, you can overcome the need to trade and regain mental peace and stability.
Here are some tips to beat cryptocurrency addiction.
Be honest with yourself
Being honest with yourself about how crypto trading has affected you is the first step towards overcoming cryptocurrency addiction. Admitting trading has become a problem is challenging but crucial. Take a good look at how trading is affecting your mental health and relationships. Acknowledging this negative impact is the first step toward changing your behaviors and seeking help when needed.
Understand seeking help is not a sign of weakness but a courageous step towards recovery. Consider keeping a journal to track your thoughts and feelings about cryptocurrency trading to help you understand your behavior.
Stay away from triggers:
Like with any other addiction, avoid triggers that tempt you to trade. Consider deleting trading apps from your devices and staying away from online forums or communities where trading is discussed. If you can, taking a break from interacting with other traders can also help reduce the temptation to engage in cryptocurrency activities.
To avoid your triggers, you need to know what they are. Identifying specific situations, emotions, or thoughts that trigger your urge to trade and developing strategies to cope with these triggers effectively may be helpful. Engage in alternative activities that bring you joy and fulfillment, like other hobbies, exercise, or spending time with loved ones.
Look into the deeper reason:
Explore the underlying motivations behind your crypto trading habits. What values or needs are you trying to fulfill through trading? Consider alternative ways to meet those needs that align better with your well-being and values. Reflecting on your deeper reasons for trading can help you develop healthier coping mechanisms and make more mindful choices.
Work to cultivate self-awareness and introspection to understand the root causes of your addiction. Therapy or counseling can provide a safe space to explore these deeper issues and gain valuable insights into your behavior patterns.
Be kind to yourself:
Don’t be too hard on yourself for past losses or mistakes in cryptocurrency trading. Treat yourself with kindness—self-compassion is essential on the journey to recovery. Understand overcoming addiction is a process, and setbacks are a natural part of it. Try to be as patient as possible with yourself as you work towards regaining control over your trading habits.
Practice self-care activities like meditation, mindfulness, or relaxation exercises that improve your physical, emotional, and mental well-being. Surround yourself with supportive friends and family members who can offer encouragement and understanding during this recovery.
Seek professional treatment:
Recognize cryptocurrency addiction is a behavioral addiction, just like gambling or pornography addiction, that may require professional support to overcome. If crypto addiction is getting in the way of your relationships and happiness, don’t hesitate to seek help from a qualified therapist who specializes in addiction treatment. Professional treatment can provide you with personalized strategies and support to address the underlying issues driving your addiction and help you regain mental peace and stability.
Seeing a therapist can help you develop coping skills, improve your self-esteem, and learn healthier ways to manage stress and emotions. Medication may also be prescribed in some cases to address underlying mental health conditions contributing to addiction. Remember, recovery is possible with the proper support and commitment to change, even if you’re in the deepest throes of cryptocurrency addiction now.
How to support someone you love who is addicted to crypto
While living with cryptocurrency addiction is hard on the person who’s directly affected, it can also send ripples of harm through families and relationships. If your loved one is addicted to crypto, they need your support to recover.
Here are some ways to support someone you love who is addicted to cryptocurrency trading.
Educate yourself about cryptocurrency addiction and its effects so you can provide more informed support. Understanding crypto trading’s impact on mental health, relationships, and finances can also help you avoid enabling behaviors.
Encourage open communication and non-judgmental discussions about your loved one’s struggles. Create a safe space where they feel comfortable sharing their experiences, thoughts, and feelings related to their addiction. Listening without judgment can help them get on the road to recovery.
Offer emotional support and reassurance they’re not alone. Express your love and belief in their ability to overcome their addiction. Your unwavering support can give them the strength they need to break away.
Encourage them to seek professional help and offer to accompany them to therapy sessions if needed. Support their decision to seek help from a therapist specializing in addiction treatment. Consider giving tangible support, like looking through insurance panels to find the appropriate therapist.
Don’t forget to take care of yourself, too. If your loved one is addicted to cryptocurrency, you may also face financial losses. It’s okay if you are struggling emotionally. Practice self-care, and see your therapist if necessary.
Get cryptocurrency addiction support at The Center • A Place of HOPE
At The Center • A Place of HOPE, we use a unique Whole-Person Care approach to mental health treatment. Mental health doesn’t happen in a vacuum. In your treatment plan, we take into account every aspect of your well-being—mental, physical, spiritual, social, and financial. If cryptocurrency addiction or a large financial loss has impacted your mental health, we want to know so we can work toward healing on every level.
Give us a call for more information on admissions and financing options.
1 – https://www.pewresearch.org/short-reads/2021/11/11/16-of-americans-say-they-have-ever-invested-in-traded-or-used-cryptocurrency/
2 – https://www.bbc.com/news/business-61375152
3 – https://pubmed.ncbi.nlm.nih.gov/35247862
4 – https://pubmed.ncbi.nlm.nih.gov/30639898
5 – https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10218304/
