As with any market or type of investment, it can be highly tempting to invest large amounts of capital into cryptocurrency and the blockchain sector. After all, it is the future and we are bound to turn a profit, right?
Theoretically, this may be quite correct, the technology and the broadscale medium of crypto is certainly the future we are moving toward. In the future, there is every likelihood that the market overall will be trending in a vastly upward direction when compared with the present time. This does not however mean that every company you invest in within the sector will thrive. This is just simply not possible. Even within the most prosperous economies in the world, there are companies who fail every day.
Another point is, regardless of temptation, you should always adhere to the essential rules of crypto investing, or any type of investing, regardless of how you feel. This means, sticking to your budget.
Checking Your Holdings Constantly
This is a possible sign you have invested too much. Sure, in the early days, the novelty and curiosity will take over and that is perfectly fine. After time though, you should not feel the need to check your holdings all of the time and interfere with your daily life. If you feel this need then perhaps something needs to be tweaked.
Another telltale sign of over investing is your anxiety levels. This can usually point to one of two things, either you are too heavily invested and thus, always wanting to monitor the situation, or you just do not have a suitable personality to be a trader. This is common among many people and nothing at all to be ashamed of, but you should perhaps evaluate your position.
Shortage of Daily Cash flow
The clearest sign you have over-invested is if you find yourself suddenly cash-strapped in your day to day life. This should be something which you simply do not allow to happen and a situation which you should rectify with urgency if it occurs.
The cliché but true solution is: Only invest what you can afford to lose.