What is FOMO?
Fear of Missing Out (FOMO) is the fear of missing an opportunity, often experienced by traders and investors in the cryptocurrency market.
This term describes the psychological pressure when a person sees asset prices rising and fears missing out on a profit if they don't enter the market.
How does FOMO manifest in cryptocurrency?
🔵 Impulsive buying: When the price of a cryptocurrency is rapidly increasing, people may rush to buy assets, fearing that they will continue to rise and they will miss their opportunity.
🔵 Unplanned decisions: Under the influence of FOMO, investors may ignore their initial strategies and invest in assets without proper analysis, increasing the risk of losses.
🔵 Social pressure: The influence of social media and forums, where "missed" opportunities are discussed, can push people towards rash actions.