What does FOMO mean in crypto - Key Ways To Manage Your Crypto

24 Nov 2023 by Harry Newman 4 min read

Experiencing FOMO and how to avoid FOMO are important lessons to learn. FOMO is an emotion every cryptocurrency investor will feel. But what does FOMO mean in crypto?

Not just in cryptocurrencies but in traditional finance too.

The fear of missing out is a constant reminder that you can't win them all. FOMO’ing into an investment, AKA buying a cryptocurrency because it’s what everyone else is doing, often results in buying the top and loss of funds, something that could have been avoided if strategies were put into place beforehand.

What does FOMO mean in crypto?

FOMO or the fear of missing out is a psychological state where investors fear being left out of potentially lucrative investment opportunities.

Due to the rapid market changes of cryptocurrencies large amounts of money can be made in a short amount of time, of course, this happens the other way too, losing large amounts of money in a short period.

Sometimes, having access to too much information can be a bad thing, and this is a crucial driver in causes of FOMO.

Social media sites and other news outlets can spark hysteria around certain cryptocurrencies causing people to flock in to buy them in the hopes of getting rich quickly, in this instance, avoiding FOMO involves not listening to all the other noise and making sure you research that crypto thoroughly before investing.

Cryptocurrencies' low barrier to entry causes an influx of people with limited knowledge and understanding of how the market works. Often relying on social media sentiment to FOMO into a cryptocurrency.

Often the signs you might be FOMO’ing into an investment begin with hearing how the cryptocurrency price has increased in value massively, and the desire to join in suddenly becomes overwhelming.

When investing, it is always important to diversify your investments, going all in on one thing opens you up to more risk if that one asset was to drastically reduce in price.

It is important to note that you can't win them all.

How To Avoid FOMO… Have A Plan!

It’s important to note that no one can predict the future, coming to your own conclusions and doing your own research on how to avoid FOMO is often better than blindly following a single person's advice.

In most cases, influencers and other publishers will have a vested interest in causing FOMO or FUD to manipulate the markets in a given direction.

Make sure you fully research a cryptocurrency, especially if mentioned by influencers, to gain a general view.

Always try to confirm with multiple sources about a cryptocurrency, often it is best to hear a wide range of views.

Make sure you are kept informed with the latest developments, from social media or other news outlets.

Having a long-term investment goal reduces the risk of short-term market fluctuations and increases your chances of turning a profit.

Where possible, look to DCA into an investment, the gradual investment over time reduces your initial exposure and is a great way to increase your portfolio.

Investing in cryptocurrencies should never be an impulsive decision based on market noise, doing proper research, due diligence and staying disciplined is important.

Where possible evaluate your risk tolerance, if you are wanting to invest in something more risky, perhaps open a new crypto wallet and add a small amount of funds to play around with.

This reduces the risk on your whole account by only using a small percentage dedicated to riskier investments.

Final Thoughts

Effectively managing your cryptocurrencies requires a balanced approach, combining knowledge, planning and emotional control.

By setting clear goals, making sure you complete proper research, diversifying your portfolio and avoiding emotional decisions driven by FOMO, you will be able to navigate the complexities of the crypto markets more effectively.

Successful crypto investing is not just about seizing opportunities, but also about managing risk, and emotions and maintaining a disciplined approach.

The best way to avoid FOMO is to just HODL. That is hold on for dear life.

Often, the best way to get a return on your investment is to just do nothing, buy and wait.

So what does FOMO mean in crypto? Let us know your thoughts through our social media channels found below.

FAQ

What is FOMO?

FOMO is the fear of missing out.

What are some ways to avoid FOMO?

Avoiding FOMO involves making sure you do not rush whilst investing into a crypto just because you’ve heard about it. Research and gain a wide range of views so you can make a more informed decision, regardless of market performance.

Sometimes it is best to just buy and hold.

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