Here is my personal opinion about FOMO and FUD in crypto trading and investment.
To better understand this, let’s know the meaning of each.
FOMO In Crypto
The word FOMO is an acronym for Fear Of Missing Out.
Missing out on what?
Opportunities to make money. In this case, we hear the “noise” in the media about a financial asset that, by rising considerably in price in a short time, generates unimaginable profits.
This noise then gives us the feeling that an incredible opportunity is slipping away from us.
What is Fud In Crypto
The word Fud is a short form for ‘fear, uncertainty and doubt’. Usually used in the form of “xxx spreading FUD again.”
We say Resistance is the supply zone where people are willing to sell as the price goes up
FOMO and FUD In Cryptocurrency Trading and Investment
Now, I ask: who are they selling to?
They’re selling to people who are waiting to buy the top.
I ask again why do they want to buy the top? It’s simple! They’re afraid the price might continue to go up and they miss out!
On the other hand, they may not have proper knowledge of Cryptocurrency trading and investment which is “Buy low and sell high”
Now let’s dive into FUD
We say Support is the demand zone where buyers are willing to buy as the price goes down
I ask, who are they buying from?
Your guess is as good as mine
Of course, they’re buying from those who are “afraid” of losing because the price is going down! They probably “doubt” this crypto thing might be a scam.
Uncertainty: They don’t even know the future of crypto whether one can make money from it.
They complain the price is crashing too!
They forgot so soon to ask why people are still buying from them why the price is still going down. If crypto is crashing, it means no one will buy that one they plan to sell.
Lesson to Learn: Shun FUD and FOMO even though we still need them to balance demand and supply.
Hold in the dip. Be patient and smart.
Cryptocurrencies are here to stay! Nothing like crashing! It’s a financial technology revolutionizing the world.
The above is an analysis of everything you need to know about FOMO and FUD in crypto trading and investment.