widespread impact of fears (fomo) on cryptocurrency trade
In recent years, the world of cryptocurrency has experienced enormous growth and popularity. Decentralized finances (Dead), the initial supply of coins (ICO) and an increasing approach to digital handbags have made it easier for people to deal with the market. However, there is threatening power behind this excitement: the fear of disappearance (Fomo).
Fomo is a psychological phenomenon that describes anxiety and pressure that individuals feel when they cannot participate in a particular trend or event. In the context of cryptocurrency trading, Fomo may be particularly harmful, forcing investors to make impulsive decisions based on fear, not careful analysis.
Fomo Psychology
Studies have shown that Fomo is closely related to cognitive bias, such as:
1
Breeding Certificate : Investors tend to seek information confirmed by their previous views and neglect the opposing evidence.
- Availability Heuristics : Availability of news or information related to a particular event may create the illusion of its meaning, forcing investors to overrating its importance.
3
non -Mare : The fear of letting out possible benefits is more harmful than fear of loss.
How Fomo affects the cryptocurrency store
In the cryptocurrency market, Fomo can manifest in several ways:
1
Stadium behavior : Since a large number of investors buy or sell crypto currency at the same time, prices move in tandem with the most active.
- Social evidence : Investors may feel the pressure to join the “winners” and follow their peers, instead of independently evaluating the sustainability of each cryptic currency.
3
Impulse Price : FOMO can lead the price movements based on emotional reactions to prices fluctuations, not rational analysis.
Examples of transactions with Fomo -om
1
Binance price (2019) : A sudden drop in Binance Coin (BNB) sent shock waves on the market on the market, forcing many investors to sell their participation massively. As a result, a sharp drop in prices has also reduced significant losses for those who have not taken measures to provide their property.
- Slow Elona Men’s Twitter (2018)
: Twitter tweets at Tesla’s price price led to an increase in purchasing activities, which in turn increased the price. However, a sharp correction followed because investors understood the risks associated with the set.
FOMO -AA INCLUDE IN CRIPTHALUATE
Although Fomo can be a strong force in the Crypto Currency store, it is not insurmountable. Here are some strategies that will help you move on the market and make informed decisions:
1
Diversify : Spread an investment in a few crypto currency to reduce exposure to any particular property.
- Carefully research : Take the time to find out about the technology of each cryptocurrency, the use of technology, use and market trends before you make a decision.
3
Create clear goals and risk management strategies
: Create special investment goals and set real risk parameters that will help you make informed decisions.
4
Stay informed, but avoid the emotional decision -Add : Be aware of news and analysis on the market, but avoid joining emotions based on fear.
Conclusion
The fear of the disappearance (Fomo) is a comprehensive force in the Kripto -valute trade, which can have significant consequences for investors who are not ready to move in this high environment. Understanding Fomo’s psychology and taking steps to reduce its consequences, you can make more information decisions and achieve your investment goals. Keep in mind that caution is always crucial when involved in the world of cryptocurrencies, but it is also important to be awake against accepting the temptation of fear.