What is FOMO?
Fear of Missing Out (FOMO) is the anxiety of potentially missing a profitable opportunity, commonly felt by traders and investors in the cryptocurrency market.
This concept refers to the psychological pressure individuals experience when they see asset prices rising and worry they might miss out on gains if they don't enter the market quickly.
How does FOMO appear in the cryptocurrency market?
🔵 Impulsive buying: When the value of a cryptocurrency is rapidly climbing, people may hurriedly purchase assets out of fear that prices will continue to rise, and they will miss their chance to profit.
🔵 Unplanned decisions: Driven by FOMO, investors might abandon their original strategies and invest in assets without conducting thorough analysis, which increases the likelihood of financial losses.
🔵 Social pressure: The impact of social media and online forums, where discussions often highlight "missed" opportunities, can encourage individuals to take hasty actions.
