What is FOMO? 4 ways to overcome FOMO psychology in crypto

Surely newcomers to the crypto market have heard at least once about the FOMO syndrome. But it is still not clear what this term means. So what is FOMO? Can FOMO influence investor or trader decisions? What is FOMO? FOMO (short for Fear Of Missing Out) is the term for a psychological syndrome of fear of missing out. FOMO expresses feelings of anxiety and insecurity that stem from the thought that you may miss something important or valuable. What is missing here refers not only to material things, but also to other aspects such as experiences, opportunities, social interactions, etc. FOMO appears in most forms of financial markets such as stocks, crypto... even marketing-related professions such as marketing, sales ... The common point is that they all affect the psychological side of investors / users, often called the "psychological trap" FOMO. In the context of the crypto market, FOMO refers to the fear of missing out on potential profits from buying and selling cryptocurrencies. When experiencing FOMO, common signs that investors or traders may exhibit include being overwhelmed, driven by feelings of anxiety, fear, and greed. This leads to making impulsive trading decisions without a proper strategy or thorough research. Psychology when suffering from FOMO syndrome According to trading psychology, most traders suffer from FOMO syndrome when the market is near the top of a bull run. At that time, the market sentiment is positive and the token price is on the rise. Traders often believe that this trend will continue and they can earn more profit by buying now, regardless of how high the token price is. It can be said that FOMO will dominate a person's actions by two main emotions: fear and greed. Therefore, a person who is having FOMO psychology will have the following manifestations: Anxious, obsessed, and constantly checking token prices, the trading position is open, the investment has been made. Always feel the need to monitor news and trends on social media, newspapers to seek profitable opportunities that they think have potential. Hastily make buying or selling decisions just because the token is 'hot' or the price is volatile without a strategy or research on related risks.

Example: Assume you have no intention of buying any coins. When referring to information on crypto investment communities on Telegram, suddenly, you notice many groups discussing the collaboration between a large company and Project A, and the token of this project has the potential to increase significantly. At this time, you check the price of token A and see that token A is continuously increasing, even increasing very fast. Right now, you will feel that if you don't buy token A, you will miss the opportunity to make a profit. After that, you make a decision to buy token A regardless of how much its price has increased before. So, it can be said that you have FOMO. Who creates FOMO in crypto? The creators of FOMO can be projects, organizations, individuals with influence (KOL) in the crypto market to serve their own interests. Accordingly, FOMO is used as a tool to push the price of the token up in order to create liquidity so that the FOMO creator can take profit. Typically, they will control or have significant influence on many media channels, thereby affecting the actions of as many people as possible. Specifically, through news sites, social networks, groups ... KOLs will constantly mention the token they want to generate FOMO in a variety of ways, such as: Talking about the profit potential of the token. Continuously posting pictures to show off their profit when it comes to that token, to stimulate the greed of others. Organizing events requiring others to buy the token to enjoy the privileges they provide. Therefore, FOMO can be a powerful tool for projects, organizations, KOLs ... but it has a negative impact on investors and traders because of the consequences it brings. What are the consequences of FOMO in crypto? Mentally, FOMO causes feelings of insecurity, anxiety, and fear for investors and traders. In worse cases, if the condition persists, it can cause depression for the person with FOMO. In terms of decision making, FOMO often leads to irrational and hasty decisions in crypto trading. This easily causes FOMO sufferers to fall into a "swing" situation when buying tokens at the highest price. The constantly repeating cycle of FOMO psychology will cause their assets to diminish over time. Finally, the bigger consequence is FOMO causing investors and traders to no longer trust their own opinions and decisions, as they have previously incurred significant losses due to FOMO. And once they no longer believe in themselves and rely on others, there is a high likelihood that their assets will quickly go to 0. 4 ways to overcome FOMO psychology when investing in crypto In fact, it seems that FOMO will never disappear, no one can completely avoid the FOMO psychology when investing, no matter how experienced they are. However, some ways to minimize the FOMO situation are as follows: Learn and research carefully (through technical analysis, fundamental analysis) to make informed investment decisions. Avoid impatience, impetuousness, and acting immediately when being “shilled” or relying solely on price fluctuations at a given time. Always have a trading plan before placing an order. Must have a stop loss point, entry point, target selling point, and a plan for capital allocation before trading. Stick to your own trading plan. In case of needing to change the plan, investors or traders should also consider combining multiple factors (market trends, price fluctuations over a period of time, etc.) to have a flexible and suitable plan. Avoid trading or investing based on news and events. At the same time, closely observe the market to have sensitivity to the market.

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