Fear Of Missing Out (FOMO)

How to deal with crypto fomo ?

“Hey, Max, did you know you missed out of Dogecoin?”
“Everyone made a fortune off it.”

Many Investors are terrified by question like these. So much so that there is even a term of it: FOMO (Fear of missing out). Research has found FOMO is more predominant in people ages 18 to 35.
FOMO is term that’s popular in the cryptocurrency community, a market that has become associated with irrational and something unsubstantiated trading decisions

What IS FOMO in Cryptocurrency Investing?

FOMO in the crypto world occurs when a person makes an irrational decision to trade or invest in a crypto asset based on some piece of information received without properly verifying the source and or accuracy of it.
FOMO in cryptocurrency leads people to buy assets at their highest prices or even sell them at their lowest, rather than vice versa, which would be better advised. Sometimes, the consequences of crypto FOMO can be worse and more profound than a loss of invested capital-it can lead to damaging situations such ass disconnection from family, anxiety, and depression.

Health Hazards Associated with FOMO

Take the Time to Research

FOMO is compulsive and driven by information received from a variety of channels. Usually, news like that isn’t verified and is interpreted to suit a person bias.

Rely on Trusted Media Outlets

Connducting research gives you with an edge in overcoming FOMO. Still. An additional helpful practice is having a list of expert individuals and media to turn to for more information. Relying on these selected media outlets and influencers as secondary sources contributes to better decision making on whether to buy or sell a crypto asset. The extra details and clarity can help inform trading or investment decision.

You Can’t Win All the Time

Life is a combination of ups and downs, coming to this realization gives an investor logical perspective and better grounding position in investing sets the tone for more wins and being able to handle occasional losses. Not even Bitcoin advocates like MicroStrategy co-founder Michael Saylor are always on the winning side of the crypto market. A crypto investor’s or traders best bet is to develop strategies that make it easy to spot FOMO.

How to Avoid FOMO as a Trader

Developing a Guiding Strategy

Having a guiding principle is a constructive way to get over the effects of FOMO. It means maintining a checklist to prevent making drastic or jumping too quickly on the market bandwagon. Your strategy will incorporated nuance like the use case of the crypto assets that your condidering, its tokenomics and more. Combine fundamental and technical analysis whenever possible to shield yourself from poorly thought out trading decision.

Know the Market Is Cyclical

The Cryptocurrency market, like others in the financial world, moves in an up-and –down cycle, with bullish and bearish periods, the bull market comprises a series of price highs and the bear marked comes with low – and with people losing money driven by FOMO, when you can recognize the right time to enter and exit a trade.

The Bottom Line

Forms of FOMO have been a part of human existence long before cryptocurrency was invented. With cryptocurrency it can be detrimental because of the potential for losing an entire investment. Following guidance with discipline can help investor avert the danger and influence of cryptocurrency FOMO.