What is FOMO?
Fear Of Missing Out (FOMO) is a commonly used term in the cryptocurrency world. But what is FOMO? Can it be avoided?
FOMO is the fear that a trader will miss out on a critical increase in a cryptocurrency price. With the considerable fluctuations in the price of a cryptocurrency, a trader may see a positive price indicator of a particular coin way too late; when the price has already increased significantly. With the fear that the price will continue to rise, and they may miss out on the gains, most traders sell coins with lower prices to buy the one on the rise.
Can a trader avoid FOMO?
Sometimes the fear is so much that a trader finds it hard to ignore the urge to board the fast-moving train before it’s too late. Unfortunately, sometimes fear may lead you to jump in at a time when the rise is about to take a U-turn. In turn, the trader has to choose between making a loss or waiting until the price goes back to the green.
To fight the urge to jump in, remember:
You don’t always have to win.
In the cryptocurrency world, winning and losing should always be on a trader’s mind. Sometimes, a loss can be avoided by not following the impulse and emotions.
Don’t always be pampered by the good news. Instead, take time to remember the losses in the virtual currency world. As the losses linger, the FOMO melts.
There are pumps and dumps
The digital currency world is prone to manipulations. One way it happens is by artificially pumping the price and dumping or selling the cryptocurrency. When the prices fall, those who feared on missing out on the rise end up making losses.