Your biggest enemy in all areas of investment, including the crypto market, is your emotions. This is also called FOMO.
FOMO is the abbreviation of the words "Fear of Missing Out" and can be translated as "Fear of Missing Out" in Turkish. This term refers to an emotional response that leads a person to make sudden and impulsive decisions based on the fear of missing out on something they see or hear, often on social media or another platform.
To explain with examples:
1. Social Media Effect: Posts about your friends' vacations, luxurious lifestyles or cryptocurrency investments that you see on social media platforms can cause FOMO. When you see such experiences of others, you may feel the desire to have the same experiences.
2. Cryptocurrency FOMO: The cryptocurrency market can change quickly, and sometimes the value of a particular cryptocurrency rises rapidly. In this case, an investor experiencing FOMO may invest in that asset for fear of missing out on a quick profit opportunity. However, these hasty decisions involve risks.
3. Entertainment and Events: Fear of missing the announcement of a friend group or community event can lead people to join at the last minute. This can lead to unplanned expenses.
FOMO often leads people to make decisions on an emotional basis and prevents them from thinking rationally. Therefore, it is important to keep the FOMO effect in check and make a logical assessment when making financial or other important decisions.
