“FOMO (Fear of Missing Out) is the acronym that depicts the feeling of anxiety, uneasiness, and apprehension you get when you believe that you are missing out on a potentially profitable investment. In many ways, FOMO is one of the primary drivers behind the huge rallies that we continually observe in the crypto market, as hoards of FOMOers pile their cash into a coin as it hits all-time highs. This is usually done out of a panic that they might miss out on the next big thing – but we all know how that story ends up, right?”
What is FOMO?
While the term FOMO is not exclusive to the crypto community, it’s hard to think of a place where it has become more relevant. Due to the sheer number of inexperienced investors who clearly trade emotionally with money they cannot afford to lose, FOMO has become a centerpiece of the crypto world, and in many ways, it is one of the main reasons why we see such extreme volatility in the industry.
With that said, the potential for FOMO in the crypto world is real, and it’s clear to see why so many people succumb to these emotions. After all, most people who find themselves here are probably crypto enthusiasts, which means that some of you must hold some sort of assumption/hope that crypto might be the thing that will finally overthrow FIAT currencies and the elitist regime that governs our nations. Decentralization FTW.
If that’s the case, you probably want to make sure you are on board the moon train of the crypto that makes it to the big leagues, which is why…. Hold up, lemme go grab my Ledger real quick; I just convinced myself to buy some more XRP.
How to combat FOMO
All jokes aside, it’s important to understand that FOMO is a negative emotion that stems from frustration and anxiety, and it often contributes to poor financial decisions, resulting in significant losses and regrettable life decisions.
At its core, FOMO is an undesirable emotion that makes you feel as thorough you have made a mistake or you have missed a once-in-a-lifetime opportunity. Of course, these feelings are irrational, though they can drive us to make impulsive decisions that can be very costly to our trading balance and mental health. On that note, here are a few tips on how to conquer the mighty beast that is FOMO:
- Remember, you will live to fight another day. There is always another coin, and there will always be another dip.
- We tend to look at the things we missed out on and feel bad, but we very rarely count ourselves lucky when we miss out on a coin that ends up going south. Try to remember the lucky escapes just as much as the missed opportunities. A bit of perspective goes a long way.
- Be grateful for what you already have! If you still have some crypto or some funds to invest, you are still in the game.
- If you are a trader, always stick to the fundamentals and never trade based on emotion. Especially not out of fear. If you find yourself getting excited or emotional, just stop trading.
- Last but not least (and this is a big one). Never YOLO all of your money into a coin because some guy with an Elon Musk handle and a Tesla avatar on Telegram told you that this coin would be the next coin to the moon. News flash – it almost always isn’t.