Fear of Missing Out (FOMO) is an emotional phenomenon in the crypto world that occurs when someone feels anxious or afraid of missing out on an opportunity to profit from an increase in the price of a particular digital asset.
FOMO can influence a person's investment decision making, prompting them to buy crypto assets quickly and without careful consideration for fear that prices will continue to rise. This often results in buying at high prices and can be risky, as prices can fall sharply after a rapid rise caused by FOMO.
FOMO can occur for a variety of reasons, including the influence of social media, a friend's recommendation, or news of a rapid price increase. An example of FOMO is, when an individual sees news about a particular cryptocurrency experiencing a significant price spike, they may feel pressured to participate in the increase, afraid of missing out on potential big profits.
Therefore, it is important for crypto investors to remain calm and rational in decision making, conduct thorough research before investing, and avoid getting caught in the FOMO cycle which can have a negative impact on investment decisions.
Read More Vocabulary
DeFi | Liquidity Pool |
DApp | Cross-Chain |
Exchange | Halving |
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