What is FOMO? What does the term FOMO mean in the cryptocurrency market?
The term FOMO is a word used in the financial world. The developing crypto money technology and the increase in the number of investors in this field day by day have caused this term to be used in crypto money markets. What is FOMO, originally an acronym in English?
The universe of speculation contains numerous open doors and dangers. Somebody who starts effective financial planning needs to twofold his primary cash quickly. In any case, it isn’t workable for everybody to assess the valuable open doors in the monetary business sectors accurately. Particularly in the fast vacillations of the digital money market, financial backers might pass up on an open door they experience. FOMO is a term that relates to the longing to jump all over the chance. What is going on with the term FOMO in the digital currency trade?
What does FOMO mean?
An abbreviation for an English expression, FOMO stands for “Fear of Missing out”. This term, which is frequently used in social life and in the investment world, means the fear of missing an opportunity. It’s a general fear of missing out on exciting things.
In this period when technology is advancing rapidly, new products are released every day and almost everything is shared on social media, the term FOMO has become even more common.
In the cryptocurrency market, where highly volatile charts prevail, investors often fall under the FOMO effect. The FOMO effect, especially for suddenly rising cryptocurrencies, causes many investors to trade. However, such sudden decisions may not yield positive results. Therefore, the FOMO effect can make the investor lose money.
FOMO formation on cryptocurrency exchanges
Investing is all about knowledge and strategy. Acting with emotions in the cryptocurrency exchange where sudden ups and downs are experienced can make the investor make mistakes. In particular, the FOMO effect, the sense of missing an opportunity, can cause premature trades. The FOMO effect usually manifests as:
- The investor constantly follows the crypto money that he/she is afraid of missing the opportunity, and cannot take his eyes off the trading screens.
- It trades without strategy or against its own strategy so as not to miss the appropriate position.
- It gives a buy order as a result of a rise in the chart and the appearance of the green chart.
- The crypto asset that it buys at a high level then sells when it falls and thus loses.
Acting with emotional effects such as FOMO while investing is misleading. The FOMO effect is especially common with new investors.