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How to Avoid FOMO and FUD in the Crypto Market
The Bitcoin and cryptocurrency markets have gone through many cycles of growth and decline, since the digital asset industry started booming in 2009.
Up to now, the crypto market has created a larger continuous trend known as a bull and bear market.
While it is true that every downturn in the market so far has been followed by a significant recovery and growth, periods of decline can be stressful and difficult to navigate for experienced traders as well as novice investors.
Well, facing the ups and downs of the crypto market, there are several main strategies that can be taken. This strategy is important to maintain value in the portfolio, avoid emotional trading, and sleep deprivation, as quoted from Coinbase.
Keeping up with the latest news and trends about cryptocurrencies is very important, but absorbing too much information is not good either. This is especially the case at a time when the crypto market is down, where everything is relying too much on instinct and trading at the wrong time.
FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt) are common terms in the crypto space, and can have a much stronger influence on our choices to buy and sell than we actually want to do.
FUD stands for Fear, Uncertainty, and Doubt. FUD generally refers to negative market sentiment, caused by some rumour, unfavorable news article, or prominent figure expressing concern about a particular market or asset.
This can have a negative effect on prices as traders sell their holdings expecting further price declines. FOMO is the opposite of FUD, which stands for Fear of Missing Out which means fear of missing out or missing out on opportunities.
FOMO relates to the tendency of traders to get carried away with wishful thinking after seeing price action or positive news, sometimes ignoring fundamental signals in a hurry to jump on board or hop on a rocket to the moon.
Remember, no one can predict the future, and there is no better person’s advice than doing your own research and coming to your own conclusions.
In some cases, influencers and publishers can actually have a vested interest in causing FUD or FOMO to manipulate the market in a certain direction. When learning about the latest updates in the cryptocurrency market, always try and confirm with multiple sources.