Surely newcomers to the cryptocurrency market have heard at least once about the psychological syndrome of FOMO. But it is still unclear what this term means in the crypto market.
So what is FOMO? What is the psychology of people with FOMO syndrome in crypto? How can FOMO impact a crypto investor or trader's decisions? Is there any way to overcome the FOMO mentality?
FOMO stands for Fear Of Missing Out, which means fear of missing out. FOMO represents a feeling of anxiety and insecurity that comes from thinking you might miss out on something important or valuable. FOMO not only refers to material things, but also to other aspects such as experiences, opportunities, social interactions...
FOMO appears in most financial markets such as stocks, crypto, forex... even marketing-related professions such as marketing, sales... The common point is that they all affect the psychology of the investor. investors/users, often called the "psychological trap" FOMO.
In the context of the crypto market, FOMO refers to the fear of missing out on potential profits from purchasing cryptocurrencies. When suffering from FOMO syndrome, some common signs that investors or traders may have include being overwhelmed and motivated by feelings of anxiety, fear and greed. Leading to hasty decisions to buy or sell coins/tokens without a strategy or thorough research.
👉 Psychology when suffering from FOMO syndrome:
According to trading psychology, most traders suffer from FOMO syndrome when the market is near the peak of a bull run.
At that time, market sentiment was positive and token/coin prices were in an uptrend. Traders often believe that this trend will continue and that they can make more profits if they buy now, regardless of how high the token/coin price is. It can be said that FOMO will dominate a person's actions by two main emotions: fear and greed.
Therefore, a person with FOMO mentality will have the following symptoms:
💥 Anxiety, obsession and constantly checking token prices, opened trading positions, and invested funds.
💥 Always feel the need to follow news and trends on social networks and newspapers to find profit opportunities that they think have potential.
💥 Hastily making decisions to buy or sell just because the token/coin is "hot" or has large price fluctuations without a strategy or research on the risks involved.
👉 Consequences of FOMO in crypto:
💥 Mentally, FOMO causes feelings of insecurity, anxiety and fear for investors and traders. In worse cases, if this condition persists, it can cause depression for people with FOMO.
💥 In terms of decision making, FOMO often leads to unreasonable and hasty decisions in crypto trading. This easily causes people with FOMO to fall into a "peak swing" when buying tokens/coins at the highest price. The constantly repeating FOMO psychological cycle will cause their assets to gradually decrease over time.
💥 Finally, the bigger consequence is that FOMO causes investors and traders to no longer believe in their own judgment and decisions, because they previously lost a lot due to FOMO. And once they no longer believe in themselves and only rely on others, there is a high possibility that their assets will quickly go to zero.
Follow for updates on ways to overcome FOMO.
