How to Invest in Crypto Like A Stoic

Applying Stoic philosophy to the art of cryptocurrency investing

The only tried and true method of making it in Crypto is investing for the long-term. Nobody has lost money from holding Bitcoin from the time of its inception to the present date, in fact, most are multimillionaires now. But that is easier said than done. Holding a large crypto portfolio is like a never-ending rollercoaster of ups and downs and if you don’t have the stomach for it, you will get wiped out pretty quickly.

So how does one develop the stomach for being a long-term crypto investor? In my personal experience, the answer lies in a 2000-year-old philosophy from the Hellenistic school of thought, called Stoicism. Here is how to invest in Crypto like a Stoic.

One of the core tenets of Stoicism is the idea of focusing on what you control and not worrying about what you do not. This way of thinking can be applied in the realm of investing as well.

Before you make any investments into a crypto project, remember that the only thing you control is how much money you put in, you do not control how much money you will pull out of the investment in the future. You do not control whether or not Elon Musk dumps the market, all you control is how you respond. So place your attention on the aspects you have control over, and the rollercoaster ride of crypto investing becomes a little less bumpy.

Another aspect the Stoics preached about was the idea of loving one's fate. It's hard sometimes to accept the things that happen to you. In the world of crypto, the market is unpredictable and while some people are becoming millionaires overnight, others are losing their hard-earned money. If you happen to fall in the latter category remember that things do not happen to you but rather things just happen, and your perception of the event is what determines whether it was positive or negative. Someone who shorts Bitcoin celebrates when it drops while someone who puts their life savings in it may develop depression.

When you love your fate in crypto and focus solely on the aspects you have control over, it becomes easier to be unemotional while investing and about the inevitable volatility you will experience.

The Stoics were also strong proponents of preparing for the worst possible outcomes of any given situation. This practice is known in Latin as premeditatio malorum or negative visualization, and here is how you use it.

Marcus Aurelius, the emperor of Rome (161–180 CE) and Stoic philosopher would train his army hardest during times of peace and harmony in preparation for war. This is because he believed it was always best to be prepared for the outcome that you dread the most because it is more likely to happen than not.

In the realm of investing in digital assets, a common piece of advice you will hear is “invest/gamble only what you can afford to lose”, this saying falls in line with the beliefs of the Stoics who were always prepared for the worst. This is the type of attitude you will want to adopt in crypto because things will rarely go your way when you are starting out and familiarizing yourself with the market. Invest what you can afford to lose, so any gains that you make feel like huge wins, and any big losses do not completely cripple you.

The reason why I chose Stoicism as the guiding philosophy to be coupled with investing in crypto is because of how practical and applicable it is to an endeavor as such. Stoicism is ancient, but more relevant today than ever, it is how I have gotten through the rollercoaster ride of investing in cryptocurrencies and I hope it will help you do the same.

Disclaimer: This article should not be interpreted as financial advice of any kind, it was written for educational and entertainment purposes only.

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