How to Overcome FOMO in Crypto Trading
Do you suffer from FOMO in crypto trading? Are you constantly checking prices and fretting that you’re overlooking the next big move? If so, you’re not alone.Fear of missing out, or FOMO, is a huge factor in trading. The crypto market is mainly unregulated, less well-tested, and has a lower entry barrier than the stock and foreign exchange markets. These reasons have caused an influx of participants who are eager to participate but have no knowledge of how the market operates. Their approach is primarily driven by FOMO. But with a little bit of patience and planning, you can overcome FOMO and make more successful trades. Read on for tips on how to stay calm and focused when trading cryptocurrencies.
FOMO is an acronym for fear of missing out. The concept was introduced in the early 2000s when the world stepped firmly into the digital era. Since then, the FOMO acronym has become part of daily life. The perfect example of FOMO is social media, where people post mostly positive and rewarding bits of their lives. You could feel it each time when you couldn’t make it to a party, but your friends posted pictures from there. There was the feeling that you’d missed all the fun in the whole world. This is FOMO. FOMO is a fear of missing a life-changing or just a good opportunity to do or feel something.
FOMO Meaning in Trading
In trading, the FOMO concept refers to the fear of losing profitable trading or missing a potentially lucrative investment opportunity. It’s the feeling that you might miss out on an asset that’s rising, and it can cause you to make some impulsive decisions. For example, you might buy a cryptocurrency when it’s skyrocketing in price, only to watch it crash soon after. Or you might sell an asset too early because you’re afraid of losing money. Either way, FOMO can cost you.
The crypto industry is a perfect example of how people become rich with random investments. Back in 2010, the value of BTC was around $0,008–$1. How could anyone predict that its price would reach $20,000 seven years later? If you ask the crypto community about their greatest regret, most people would tell you about “not-buying-BTC” at the right time. The crypto market is in its infancy. It suffers from constant fluctuations, while the value of a cryptocurrency may change dramatically within several hours.
Cryptocurrency traders have their own trading strategies that help them gain profit. However, sometimes, profits depend on simple luck when a user buys and sells cryptocurrency at the right time. There are certain symptoms that might signal FOMO. For instance, a new coin on the market is rapidly gaining momentum. Many people have already bought it and seem to have a positive or unique experience that you are not a part of. You might start to feel anxious while suspecting that everyone around knows something that you don’t. This is FOMO, and you can either go for it or resist it. The FOMO experience is very typical when an asset rises dramatically over a relatively short period of time.
Fear of missing out on a lucrative investment option is painful, but once you cool down and assess the risks, the picture might become clearer. What can be done to avoid crypto FOMO? Changelly has collected the most common tips.
How to Avoid FOMO
It is important to understand that FOMO is an emotional thing. Even if there is a critical market situation, traders must stay calm. The crypto market is not the right place for emotions and worries — there should be nerves of steel and cold math.
The key to avoiding FOMO is to trade with patience. Taking the time to do your research and develop a well-thought-out strategy will pay off in the long run. There’s no need to rush into a trade just because you’re afraid of missing out. Remember, patience is a virtue when it comes to trading.
Fix the FOMO State
Realizing that you’re experiencing FOMO is the first step. It will be easier for you to overcome this state once you fix it in your mind. It’s okay to feel jealous or left out sometimes. Just remember that everyone experiences these emotions from time to time.
If you’re about to make a trade based on excitement rather than logic, take a step back and ask yourself whether it’s really a good idea.
Anyway, you can always exchange any of the 400+ crypto assets listed on Changelly using floating or fixed rates. Buy and sell crypto with your credit card, bank transfer, or Apple Pay on Changelly.
Realize there Will be Losses
It’s also important to have realistic expectations when investing. Don’t expect to get rich quick — asset prices go up and down all the time, so obviously, there will be times when you miss out on gains. The sooner you realize that losses are just part of the game, the faster you’ll become a more advanced trader.
Analyze the Charts
Analyzing the charts is always a good start. Check the chart of the previous day/week/month. Compared to cloud-built feelings, charts are solid facts about cryptocurrency trends.
Look over Your Previous FOMO Attack
You’ve probably experienced FOMO before. Your previous experience might save you from today’s fatal mistakes.
Try to remember your last FOMO attacks. What were you doing when they occurred? Who were you with? What were you thinking about? Once you have a better understanding of your triggers, you can start to take steps to avoid them in the future. For example, if you tend to get FOMO when scrolling through social media, try taking a break from your phone or limiting your time on social media platforms. If you find that being around certain people triggers your FOMO, try to spend more time with people who make you feel good about yourself. Remember, the goal is not to eliminate FOMO entirely — that’s impossible. But by understanding your triggers and taking steps to avoid them, you can start to manage your FOMO in a way that works for you.
You Are Not the Only One
Remember, you are not the only one who may have missed out on an opportunity to make a profit. There will be other investment options based on your calculations and intuition that will help you benefit, so there is no need to worry about it.
Remember Cases of Failed “Profitable Opportunities”
There are over 3,000 digital assets on the cryptocurrency market. Some of them used to be promising cryptos but cost nothing now. During the “ICO rush,” both investors and crypto traders might have experienced FOMO. Many people lost thousands of dollars during scam ICOs.
Eventually, anyone who has ever been in business knows that failed opportunities are part of life. Sometimes, a venture just doesn’t turn out to be as profitable as expected. Other times, circumstances beyond your control can lead to loss. It’s important to remember these failures, but it’s also important not to dwell on them. Instead, focus on the lessons you learned and use that knowledge to make better decisions in the future. By keeping a level head and learning from your mistakes, you’ll be better equipped to find success in the long run.
Cut the Comparison
Don’t compare yourself to others. Otherwise, it can turn into a vicious cycle: the more you compare yourself to others and worry about what you’re missing out on, the more unhappy you become. Everyone has their own unique path in life. What works for someone else might not work for you.
“What If…” Never Works
The subjunctive mood is not applicable to financial markets. The high level of market volatility washes out any predictions. Don’t feel sorry about missed opportunities but use your skills and expertise to find your own winning strategy.
Switch from FOMO to JOMO
Lately, a new movement has been gaining traction on social media: JOMO, or the “joy of missing out.” Rather than feeling left out, JOMO encourages people to find contentment in their own lives and experiences. So next time you see someone in the crypto community gaining major profits from crypto investing, don’t get wrapped up in FOMO. Instead, take a moment to appreciate all the great things you have going on in your own life and in your own investment portfolio. You might just find that JOMO is the best way to live.
Focus on what you have, not what you lack. Appreciate the good things in your life and be grateful for what you have. This will help you feel more positive and motivated.
If You Happen to Fall under Crypto FOMO
By following the steps above, you can learn to cope with FOMO in a healthy way. So when you feel left out next time, remember that it’s not the end of the world!
And also, if you decide to trade a cryptocurrency they all buzz about, don’t forget the golden rule of any savvy trader: trade the amount you’re not afraid to lose, especially if you’re a retail investor who still needs to exercise discipline. Focus on building a diversified portfolio that will help you reach your long-term financial goals, and don’t let FOMO ruin your chances of success.
Convinced that they’ll miss out on huge profits if they don’t get in on the action, traders are constantly chasing the latest hot stock or initial coin offering. As a result, they often make careless decisions and end up losing money. The truth is, there’s always going to be something new and exciting happening in the market. If you give in to FOMO, you’ll never make any progress as a trader. Instead, you need to focus on developing a disciplined approach and staying informed about what’s happening in the market community. That way, you can make informed decisions and avoid getting caught up in FOMO.
There are multiple ways to overcome FOMO in trading. We hope that the tips listed above will be helpful at the right time.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.