FOMO stands for Fear of Missing Out, a term unfamiliar to the general public.
However, this term has been heard very often in the investment world, including crypto-asset investment.
FOMO is an action taken by a trader/investor who fears being left behind or doesn’t want to miss the ongoing trend.
So, to learn more about the term FOMO and how to deal with it or tips to avoid it, let’s see the review below!
What is FOMO?
FOMO, or Fear of Missing Out, can be interpreted as fear of missing something (usually in the form of a trend).
In the context of crypto investment, FOMO is a person/society afraid of being left behind by a trend, so they want instant profits from digital assets.
However, in practice, these FOMO investors will get carried away with their emotions and buy assets.
Usually, it is driven by their fear of losing opportunities to profit when crypto prices are skyrocketing.
Sometimes people also experience FOMO because they find other investors making big money and showing it off on social media.
This also makes people or investors who are FOMO jump into the investment world without having the proper knowledge.
Ultimately, FOMO causes someone to try to get into the world of investing, including crypto assets, without ever exploring the ins and outs of these digital assets.
Thus, even the FOMO attitude ultimately negatively influences someone who does it.
What Are the Dangers of FOMO?
When viewed from the context of crypto investment, the most obvious danger of FOMO is that investors will suffer sizable losses because they do not know at all when trying this one investment instrument.
In fact, before entering the world of investment in crypto assets, people should first learn and explore the world of crypto investment and how to trade correctly.
This is because crypto trading is the same as other trading activities. Knowledge is needed for the community, especially laypeople/beginners, who want to do it.
Besides that, for investors who don’t have an investment plan, the FOMO attitude will make them unable to calculate the risk value and control themselves when trading.
Even if the goal is to make a profit, if done wrong, trading will only harm investors who are already trapped in the FOMO attitude.
How to Avoid FOMO in Crypto Investing
How to avoid FOMO in crypto is very important to you know. The reason is FOMO can have a bad impact, one of which can even interfere with your mental health.
So, to prevent this, below we will explain several ways you can use to avoid FOMO.
1. Perform an analysis and calculate the risk
You should analyze and calculate the risks every time you buy digital assets.
Thus, you will also only buy assets at reasonable prices.
2. Evaluate crypto assets
Next, to avoid FOMO, evaluating the crypto assets to be invested is a good idea.
You need to know the types and how these crypto assets work.
In this case, you can visit the official website and monitor trends and developments in these cryptocurrencies to get clear information.
3. Know the cost of the service
Finally, you also have to know the number of service fees charged. Besides that, to ensure more security, you have to choose a media exchange that has been officially registered with the Commodity Futures Trading Regulatory Agency (Bappebti).
An acronym for Fear of Missing Out, the term FOMO has often been heard among investors.
Put, FOMO is the fear of missing out on a trend, for example, the trend of investing in crypto assets.
Even though the intention is to profit, a FOMO attitude will lead investors/traders to losses.
The reason is with only a moment’s emotion and the desire to make instant profits due to FOMO earlier. To enter the investment world, many beginners need to gain basic knowledge regarding the assets they will invest in.
Related to this, several things can be done to avoid FOMO, especially in investing in crypto assets.
Among them is to analyze and calculate the existing risks, then evaluate crypto assets and seek information to determine the current service fees.
So, now you know what it means and how to avoid FOMO.
If you want to invest in crypto assets, choose a trusted crypto exchanger like Indodax.
Let’s start trading right now.