🧠 PSYCHOLOGY #1: THE MENTAL ACCOUNTING TRAP
You separate your money into "buckets":
- Investment money
- Savings money
- Fun money
You lose $500 in crypto.
But you think: "It's okay, it's my investment bucket."
Wrong.
Study:
Mental accounting reduces perceived risk perception by 35%.
Money is money.
$500 lost = $500 you CAN'T spend elsewhere.
The FIX:
Treat ALL money the same.
Ask: "Would I be okay losing THIS from my savings?"
If no → don't risk it.
$BTC $ETH $AVAX
You separate your money into "buckets":
- Investment money
- Savings money
- Fun money
You lose $500 in crypto.
But you think: "It's okay, it's my investment bucket."
Wrong.
Study:
Mental accounting reduces perceived risk perception by 35%.
Money is money.
$500 lost = $500 you CAN'T spend elsewhere.
The FIX:
Treat ALL money the same.
Ask: "Would I be okay losing THIS from my savings?"
If no → don't risk it.
$BTC $ETH $AVAX