[Pahinga Muna ‘Pag May Time] Crypto Trading Tied to High Stress — Research

Disclaimer: This article is for informational purposes only and does not constitute financial advice. BitPinas has no commercial relationship with any mentioned entity unless otherwise stated.

📬 Get the biggest crypto stories in the Philippines and Southeast Asia every week — subscribe to the BitPinas Newsletter.

A new study, published in the Journal of Mental Health Policy and Economics, finds that cryptocurrency trading significantly reduces quality of life, sleep quality, and increases stress among traders compared to non-traders.

What’s the significance: The research highlights the potential mental health risks associated with cryptocurrency trading, which calls for increased awareness and support for traders facing these challenges.

Key details: 

• A study conducted with 437 academics in Turkey revealed that crypto traders scored lower on quality of life assessments and experienced worse sleep and higher stress levels than their peers who do not trade.
  • Crypto traders share personality traits with high-risk stock traders and gamblers.
  • The Forbes article highlighted that an Addictive Behaviors review noted that the volatility and 24/7 nature of crypto markets resemble gambling patterns.

The numbers: The study highlighted that 70%-80% of day traders lose money, leading to financial stress.

Result: 

• Crypto traders are more prone to excessive gambling, gaming, and internet use.
• Traders reported higher psychological distress and perceived loneliness compared to non-investors.

Strategies to Reduce Stress:

• Suggested strategies include setting trading limits, sticking to budgets, and using losses as tax offsets.
• Mental health professionals recommend emotional regulation, balancing trading with other activities, and community support to mitigate stress.

Researchers emphasize the need for public health policies addressing the mental health impact of trading.

• Researchers also called for social awareness for crypto traders as trading attracts inexperienced individuals, increasing mental health risks.
• Urgent attention is needed to address stress and burnout in the growing crypto trading community.

Between the lines: Cryptocurrency trading, with its round-the-clock availability and unpredictability, creates a stressful environment like gambling, increasing the risk of emotional and mental health issues for traders.

What to watch: The study may lead to more research on the mental health effects of cryptocurrency trading and encourage platforms to add protective measures for traders.

Worth reading: Recently, the Philippines fell to 8th in the 2024 Global Crypto Adoption Index.

This article is published on BitPinas: [Have a Break ‘Pag May Time] Crypto Trading Tied to High Stress — Research

What else is happening in Crypto Philippines and beyond?