What FUD Is: Definition, VS FOMO, and How to Avoid It

FUD is a term that is quite widely used in investing crypto (cryptocurrencies). This term is widely used and even used as material to become a crypto meme.

What does FUD stand for and when can this term be used? See further explanation from FUD is for crypto.

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FUD definition

definition of fud is — The definition of FUD is: Fear, Uncertainty, Doubt (source: iStock)

FUD is an abbreviation of three words viz afraid (Afraid), uncertainty (uncertainty), and doubt (doubt). This term is well known in the asset and market world, and is increasingly recognized since it is often used in crypto investments.

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FUD complied Zipmex refers to the general pessimistic mindset about certain assets or markets that is created from the manipulation of investors' or consumers' emotions so that the disadvantaged party succumbs to FUD.

FUD in asset and crypto investments have quite different definitions. When investors talk about FUD in crypto, they are referring to the rumors and hype that are spreading through the media (and social media).

This is if the investor is not wise will encourage the investor's decision. Thus, will take impulsive and often irrational steps.

In crypto, FUD refers to 2 things namely:

To spread doubt about certain tokens or projects in an attempt to manipulate the price downwards.
General skepticism and cynicism about cryptocurrencies as an asset class, and related news/events. Even rumors of possible negative events can generate FUD.

Also Read: What is Liquidity Ratio? Definitions and Types Must Know!

The Difference Between FUD VS FOMO

fud is vs fomo — Difference between FUD and FOMO in Crypto (source: iStock)

FUD and FOMO are often intertwined in crypto. FOMO is a crime Fear Of Missing Out, is a term used in the crypto world that has a lot to do with everyday life.

FOMO usually refers to beginners who just want to trade crypto assets out of curiosity or are just buying/selling other assets. hype.

Investors who experience FOMO usually have a sense of following what other people are doing. It is based on the fear of missing out, especially feeling that the price of one of the coins will go up.

Meanwhile, FUD is a herding opinion that can affect traders and investors emotionally.

Thus, causing doubts or changing your mind about the strategies and plans that have been used to invest in crypto.

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How to Avoid FUD

Setting Crypto Investment Goals

Before you do crypto investment, you must have definite and complete goals such as dates, goals and more.

So, when faced with FUD or FOMO information, you can already consider the actions resulting from this news having an impact on your investments and goals.

Building a Trading Strategy

Trading strategies generally involve determining stop loss, entry point, target sell point, the amount of capital, and others.

By setting a strategy trading before you invest, you won't be easily swayed by confusing information related to FUD or FOMO.

Update Information from Trusted Sources

You must stay updates with the development of crypto-related information. Choose a source of information that is trusted, has verification and a good reputation.