How to Avoid Crypto FOMO, Don't Get Involved!

Many investors are scared and often get caught up in Crypto FOMO (Fear Of Missing Out). This is usually more common with new traders and investors in the crypto world.

Crypto FOMO is a popular term in the cryptocurrency community, a market that has been associated with irrational and sometimes unfounded trading decisions.

FOMO in the crypto world occurs when someone makes an irrational decision to trade or invest in crypto assets based on some information received without properly verifying its source and/or accuracy.

Deep FOMO cryptocurrencies directing people to buy the asset at the highest price or even sell it at the lowest price, rather than the other way around, which would be better. Sometimes, the consequences of crypto FOMO can be worse and more profound than the loss of invested capital. 

How to Avoid Crypto FOMO

Below are some ways and tips you can do to avoid this.

Take Time For Research

FOMO is compulsive and driven by information received from multiple channels. As a rule, such news is not verified and is interpreted according to personal biases.

Doing research gives an edge in overcoming crypto FOMO. However, it is an additional useful practice to have a list of individual experts and media available for further information.

Relying on these selected media outlets and influencers as a secondary source contributes to making a better decision about whether to buy or sell crypto assets. Extra detail and clarity can help inform trading or investment decisions.

You Can't Win All The Time

Life is a combination of ups and downs, coming to this realization gives investors a logical perspective and a better foundation.

Understanding that in investing one is not always in a profitable position sets the tone for more wins and being able to handle occasional losses.

Even Bitcoin advocates like MicroStrategy co-founder Michael Saylor have not always been on the winning side of the crypto market. The best bet for any crypto investor or trader is to develop a strategy that makes it easy to spot FOMO.

Be aware of Volatile Markets

The cryptocurrency market, like everything else in the financial world, moves in ups and down cycles, with bullish and bearish periods.

A bull market consists of a series of highs and a bear market comes with lows and with people losing money.

Understanding these cycles will help reduce the risk of being driven by FOMO, as you can recognize the right times to enter and exit trades.

Bread also: Characteristics of a Crypto Scam You Must Understand, So You Don't Lose!

Learn From Previous Mistakes

One of the best ways to avoid FOMO is to learn from past mistakes. Reflect on the moment you panic-sold your Bitcoin, fueled by the news you heard about the incoming dump, only to see the price spike sharply after you clicked the sell button. 

You find the information is not exhaustive, or may not be correct. Scenarios like that can make you regret selling.

Also read: Pump Crypto Is An Asset Purchase, Here's The Explanation!

To avoid this, contemplate a situation where you made a trading decision that resulted in you losing money, which you regret.