Unrealized losses are really quite tormenting. Even if I haven't sold and haven't realized the loss, my mind automatically amplifies the thought of "possibly losing more," and I wake up in the middle of the night wanting to check my position. Unrealized gains are actually easier to be perceived as "what should already be there," but when there's a pullback, I feel like my money has been stolen. Basically, it's loss aversion acting up.

Recently, I've seen everyone comparing RWA, or the yields on U.S. bonds, to on-chain yield products. I also get a bit tempted, but the more "seems very stable" narratives there are, the easier it is for people to hold onto unrealized losses and refuse to cut losses, thinking it'll come back if they wait a little longer. Anyway, in this extreme market condition, I only do two things: first, adjust my positions so I can sleep peacefully and not let a single needle pierce my mindset; the rest... accepting the loss is fine, at least I won't go all-in and end up completely insomnia.