The effect of emotions on cryptocurrency trading

Abstract

The purpose of this article is to present a critical position on the effect of emotions in financial markets. The types of financial investments have diversified to such an extent that today it is possible to carry out operations of this type in short periods of time, from anywhere in the world through any device with Internet access; Within these possibilities are short-term speculative investments or also called trading. In this sense, investments in the cryptocurrency markets is one of the most used, mainly due to the comfort from which it can be operated, and for the benefits that they offer, however, within this field of finance the capabilities investor’s cognitive, as well as their emotions when operating, which have a direct effect on the results obtained in the operations that are carried out. In this article, the operation of investments in cryptocurrencies will be explored under the trading scheme and the theory of behavioral finance and emotions will be analyzed when trading.This manuscript presents a qualitative approach of a descriptive type, since it describes the emotions in the most common cryptocurrency trading operations, with the purpose of informing the reader who acts as a real or potential investor in the financial markets where it is concluded that the The control of emotions is linked to the trading plan, the strategy, the times, the discipline and the perseverance, which allow training the trader who can see future benefits reflected in his favor, as long as he applies the step by step explained here, which It can lead you to success in this type of business.