Tips to Avoid FOMO, the Big Enemy of Crypto Traders

Tips to Avoid FOMO, the Big Enemy of Crypto Traders

Fear Of Missing Out (FOMO) is a term commonly used in the cryptocurrency world.

The term FOMO is the fear that traders will miss the opportunity to take advantage of the critical rise in cryptocurrency prices. With the considerable fluctuations in the price of cryptocurrencies, traders may feel late and out of information if they see a positive price indicator of a particular coin moving significantly.

As a result there will be a fear that the price will continue to rise and trigger traders to sell coins at lower prices to buy coins that are on the rise for fear of losing bigger profits. FOMO is often a factor in the rise and fall of the price of a crypto asset.

Can FOMO be avoided? Of course, I can! Here are tips for avoiding FOMO so you don't get caught up in crypto price fluctuations.

Don't Often Open the Internet and Market

This is one of the easiest ways to eliminate or reduce FOMO. When you feel anxious and rashly take action because of the series of crypto news out there, it's a good idea to disconnect from the internet, don't surf cyberspace, don't open social media and don't focus on the market.

Try shifting your focus to other things, such as sports, reading books, watching movies and so on. Shifting this focus can make your emotional state and anxiety subside from panic and fear of missing something.

You're Not Always Lucky

Keep in mind that in any investment there is such a thing as profit and loss. You are unlikely to continue or vice versa. So be realistic and accept losses if you are wrong in entering a very volatile market. The way to avoid losses and keep you cool in trading is to create a strategy and stick to it.

Also Read:  Advantages of Copy Trading on MoonXBT

View Statistics to Get Real Picture

The story of BTC and ETH excites the imagination of many inexperienced traders and investors. Therefore, any coin that markets itself as a “new Bitcoin” looks like a unique opportunity to create wealth.

So that you don't FOMO and are tempted by the lure of “New Bitcoin”, it's a good idea to look at some statistics to realize that between BTC or ETH, there are hundreds of shitcoins. Each pretends to be revolutionary or innovative to attract FOMO-driven investors.

Don't rely on intuition

Many beginners tend to listen to their guts and intuition as opposed to logic when it comes to making money. If you have a “feel” about some coins, resist the urge to buy them right away. Sometimes our well-meaning subconscious has clouded our reality and forced us to make bad decisions.

Read About FOMO Based Scams

One well-known type of scam at play in FOMO is the pump-and-dump scheme. Long story short, the group behind the scheme made the prices of some shitcoins go up sharply. This attracts many FOMO traders who believe they have seen the “next big thing”. When the price reaches a certain mark, scammers sell their coins and make a lot of profit, at the expense of other players.

Unfortunately, scammers use many tricks to trick people into getting no money. In many cases, they exploit the fear of being left behind to achieve this goal. Being aware of this fact helps avoid many of these pitfalls.

Analysis of Errors Made Due to FOMO

Everyone who trades crypto has a history of failure due to FOMO. That's why it's a good idea to evaluate the mistakes you made because of FOMO.

You can see how much money you lost, what actions you took during FOMO and you could avoid or so on. Evaluation is an important part of improving emotional and logical conditions in dealing with crypto FOMOs that often occur.

Lastly, FOMO can be avoided if you have sufficient knowledge about crypto assets, therefore in addition to doing the tips above, you should continue to learn about the rapidly changing crypto world.

Hopefully these tips for overcoming FOMO can help you.