What is FUD and FOMO

 

In the crypto world, the terms FUD and FOMO are very well known and must be known by investors, so they are more careful in managing cryptocurrencies.This blog also provides a test, are you one of those people who are easily influenced by FUD and FOMO, you only need to answer simple questions honestly.

What is FUD?
FUD is an abbreviation of Fear, Uncertainty, and Doubt, or what is often a pun as Facts U Dislike. Fud is often created and used by investor whales to lower the price of a crypto, so that investors can buy crypto at a low price. In order to cause FUD these big investors spread news that can cause fear and doubt to novice retail investors, these whales also sell some of their crypto so that the price goes down, novice investors think that crypto prices will really crash, so they rush into it. hurry to sell their crypto, then the price of crypto will drop even more, the price of crypto will drop to what the whales want, and this is when the whales buy crypto in large quantities. Experienced investors will be quick to respond if there is a FUD spread, they will remain indifferent, and keep their crypto HODL, or not sell it and just have to wait for crypto prices to return to normal.

What is FOMO?
FOMO stands for Fear Of Missing Out, or the feeling of fear of losing the opportunity to get big profits, so novice investors flock to buy crypto. FOMO is often used on new coins/tokens, or old crypto that is less well known but suddenly the price goes up, usually whales or through influencers tweeting on social media, they (whales) also buy large amounts of the crypto they are promoting, so the price really go up, of course there will be many new investors flocking to buy the crypto, After the crypto price reaches the height desired by the whales then suddenly the whales sell their cypto in large quantities, so the whales will make a big profit.

What can be done to avoid FUD?
To avoid FUD, when crypto prices fall, we need to look for valid news from various sources, so we will get deeper information about a crypto and need to do crypto price analysis, Don't panic and rush to sell all the crypto we have at low prices.

What can be done to avoid FOMO?
You can avoid FOMO by analyzing and calculating the risk of every time you buy a crypto (coin/token), thus avoiding buying crypto at a price that is too high. For example, if you believe an asset has a bright future, but it is already too expensive. Don't put all your money in at once to buy the asset at the high point. Because it is possible that the price of these assets can fall.

From the explanation about FUD and FOMO, it can be concluded that investing, especially in cryptocurrencies, cannot be done based on emotion alone. From the two terms above, you can learn to avoid trading based on fear. If you start to see FUD, study price analysis again and adjust it to your trading strategy. Then if there is a sense of FOMO when a coin looks like it has potential, re-study the chart of the coin and throw away emotions when trading.