FOMO is a major factor to consider when swing trading in cryptocurrency because it is still largely driven by feelings rather than valuation. People buy at the top or hold during a dip after generating profits because they are afraid of missing out. When a coin is pumping, people FOMO the coin because they didn't want to miss out on the possibility to make money by producing it at a higher cost. FOMO occurs when people act on impulse because they are afraid of missing out.