Last Updated on August 18, 2022 by aicrypto
The acronym FOMO stands for Fear Of Missing Out. This means having a fear of missing out on something, maybe even being left out.
With cryptocurrency, FOMO arises when BTC goes to the moon, for example. You think, everyone gets rich from cryptos except you.
The big price rise combined with many positive messages appearing on various media such as TV, radio and social media creates FOMO in people.
Left and right you hear nothing but bullish noises about BTC, so you can’t miss this opportunity. Because of all the success stories, the feeling of being left out of the loop only increases.
What is the consequence of Fear OF Missing Out?
Partly because of FOMO, people step into crypto based on fear, and everyone knows that fear is a bad advisor.
As a result, you no longer think clearly and are more likely to make the wrong choice. Rational thinking changes into irrational thinking.
After a big rise in the price, a correction often follows. Which probably results in a loss of your investment.
- Because of the quick entry without research and logical thinking, panic sales often follow.
FOMO can also lead to bubbles as happened with the dot-com bubble. Due to herd behavior, which is reinforced by social media, many hypes are created. Ultimately, the bubble bursts and the people who get in on the basis of FOMO often come off badly.
- In addition, FOMO causes stress.
If you invested based on FOMO, chances are you check your coin price at least a couple of times a day. You wonder whether your investment has already gone to the moon, and what if your investment is now worth almost nothing?
What can you do about it?
Make sure you create awareness when you want to start buying or day trading the crypto market.
Why do you buy?
Out of fear of missing the boat or because you believe in the product?
Make sure you recognize it, this becomes easier as you gain more experience.
Focus on what you do have rather than what you are missing in your life. You shouldn’t be thinking: “What if I had bought some Ethereum at $0.50 a piece?”
But the reality is that there is nothing you can do to change this. So let go of that thought. There will always be many other lucrative investment and trading opportunities.