favorably cryptocurrencies: the story of fear, anxiety and fomo
There is a growing phenomenon in the finance world that has caused investors, merchants and occasional users to feel anxious and uncertain. It is known as fear of missing (Fomo). But what is behind this psychological trap and how does it affect cryptocurrency prices? In this article, we dive into the psychology of the Fomo and examine its impact on the crypto markets.
What is fomo?
Fomo is a common psychological phenomenon that makes individuals feel anxious or worried that there will be opportunities. Social media platforms are often evoked, where users are constantly presented by updating about the successes and failures of others. This creates a sense of concern, as if a person watching the lives of his friends could lack an exciting experience.
In the context of cryptomena takes another form. When investors see how other traders or investors earn money on the market, they are likely to feel concerned that they miss potential profits. This anxiety can lead to impulsive decisions such as purchase or sale based on short -term market fluctuations.
Psychology Fomo
Several factors contribute to the psychological phenomenon:
1 Users are constantly bombarded with updates on the successes and failures of others, creating a sense of competition.
- Fear of missing (Fomi) : Fear that you could miss an exciting opportunity or experience is a powerful Fomo driving force. This fear can be aggravated by the constant flow of market news and updates.
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Impact on crypto prices
When investors experience Fomo, their emotions can lead them to impulsive decisions that ultimately lead to losses or profits. As follows:
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- speculation and trading : The desire to “enter the ground floor” of a promising cryptocurrency can lead investors to excessive transmission or production of unscrupulous betting, which ultimately leads to losses.
- Psychological bias : Investors may, more likely, make emotional decisions based on short -term market fluctuations and not analyze the basic foundations.
Examples of Fomo in Krypto
To illustrate the impact of Fomo on Krypto Price, let’s consider some examples:
- GOX. Investors who missed this opportunity for Fomo often regretted their decision.
- Altcoin Craze : At the end of 2017 to 2018 Altcoin Craz was partially driven by Fomo. Many investors who want to engage in cryptomen space have bought a large number of tokens without a complete understanding of their value or risks.
Burning of the Fomo Cycle
In order to avoid being the victims of Fomo and its impact on the crypto price, it is necessary to develop a more detailed understanding of the markets. Here are some tips:
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- Diversify your portfolio : Distribute your investments in different asset classes and cryptocurrencies to minimize exposure to any individual market or trend.
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