Crypto Terms: Letter F

What is FOMO?

FOMO - or “Fear of Missing Out” refers to the anxiety a person can experience when he doesn’t take action fast enough when making trading decisions.
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Let's find out FOMO meaning, definition in crypto, what is FOMO, and all other detailed facts.

FOMO originated because any delay might lead a person to miss out on a suitable circumstance.

Although the idea of FOMO is more commonly associated with the fear of missing out on a profit, the contrary may also be accurate. Moreover, when coins reach an all-time high, traders may want to cash in while the flow is good, prompting others to follow that example. Waiting out implies you may sell after the price has already begun to decline, allowing you to lose out on the large rewards associated with a high price.

A sharp decrease in Bitcoin might be driven by a number of signs, with trades occurring at fast speeds. Whispers of government restrictions or out-of-favor markets are enough to induce many to oversell.

For example, a person may experience FOMO if the value of a cryptocurrency that they do not own rises. That green line moving upwards is enough to send some people into a frenzy, prompting them to rush to acquire whichever currency appears to be surging in price.

The fear of missing that next big profit, the coin everyone wants, or being the trader that misses out, can be an essential indicator in price variations. Nonetheless, trading in cryptocurrencies may be a match of gossip and emotion, and FOMO can have a significant influence on traders' decisions on whether to purchase, sell, or keep. 

FOMO can even cause some people to transfer markets in order to get their assets out of a certain market and into their own cold wallets.

Besides, FOMO can be what causes people to purchase at the top and hold during a dip after making profits, only to lose some or all of them again.