What is FOMO and What does it Mean?
The number of people who are interested in cryptocurrencies and stock markets and have not heard of the term FOMO, one of the most famous phrases in the crypto world, is very few. Because FOMO is one of the most common situations in the crypto world.
Many people who are new to the crypto world have heard of the term FOMO, but since they do not know the meaning, they immediately feel the need to research the answers to questions such as what is FOMO and what does FOMO mean.
In this content, we will try to illuminate all the questions about FOMO, especially the answer to the question of what is FOMO.
What is FOMO?
FOMO; It means Fear of Missing Out opportunity.
The term FOMO is actually an acronym, and FOMO stands for English Fear of Missing Out.
As it can be understood from this explanation, FOMO occurs when an opportunity is felt to be missed and is a disease that almost everyone gets. For this reason, many people often use the term FOMO disease instead of FOMO.
What is the Difference Between FOMO and FUD?
The term FOMO is often confused with the famous term FUD. Both terms are rooted in fear, but you may have a hard time figuring out whether the situation or psychology is FOMO or FUD.
Understanding the difference between FUD and FOMO is actually pretty easy. What makes the difference most clearly is the difference in the way FOMO and FUD occur.
FUD is a news, sensation, rumor, etc. spread by others. While FOMO is a self-created psychological condition.
To explain in more detail, if the fear and anxiety is caused by a news or rumor, this situation is called FUD, if it is caused by what the person does or does not do, without relying on any source, this situation is called FOMO.
How Does FOMO Occur?
The term FOMO usually comes up when an opportunity is felt to have been missed, but in some cases, there can also be a FOMO effect when an investment is regretted. While the term FOMO is simple and overlooked for those who have never been involved in cryptocurrencies and have not been involved in crypto exchanges, it is possible for any new investor or sentimental investor to get FOMO.
Although we said a disease, FOMO is actually a psychological condition rather than a disease, but since it is a psychological condition that is seen in almost everyone, it would not be wrong to say that it is a kind of disease. So how exactly does FOMO manifest and where does it arise? Let’s try to explain it with a simple explanation.
Investors often wait for the cryptocurrency they want to invest to drop a little before investing in a cryptocurrency. Usually, during this wait, Murphy’s Laws come into play and the money that is expected to fall begins to rise. Just at this moment, the investor panics and wants to buy the relevant crypto currency immediately by taking a position at a higher price for fear of “Oops, I missed it”. This panic experienced by the investor is called the FOMO disease, and the process he does with that panic is called the FOMO effect.
After the purchase, Murphy’s Laws appear again and the cryptocurrency starts to move in the downward direction. At this very moment, the investor begins to regret the investment he made with the effect of the decline. This regret can also be called FOMO.
In some cases, investors may continue to hold instead of selling a cryptocurrency they bought at a high price, even if it sees a very low price. Although they state this as a bullish expectation, this is also the FOMO effect. Because an emotional bond is established with the crypto money invested, the loss situation is expected to be met with the same crypto money, and it is feared to sell when the price of the crypto money rises.
FOMO psychology; It is not just a situation specific to certain individuals, and it is a situation that even the most experienced investor can face. In addition, the number of people in crypto markets who do not suffer from FOMO disease or not affected by FOMO is almost zero.
If you are worried about being affected by FOMO, the following items may help you a little bit:
- Keep your cool as much as possible after an investment you make or an investment you make.
- The crypto world is full of opportunities, so don’t feel compelled to seize every opportunity.
- Opportunities sometimes seem like opportunities, but they may not always be opportunities, so scrutinize your decisions in every step you take.
- Do not listen to the so-called or real opportunities shared by others and do not compare yourself to others.
- Any advice, suggestion, etc. from your environment. When making decisions against situations, think and research down to the smallest detail.
- Ignore every reaction and criticism from your environment because of an investment you make or a decision you make, question and research.
The above measures will keep you away from the FOMO effect to a certain extent, but when it comes to psychology, it may be affected by even the smallest detail. Therefore, always keep the term FOMO in the back of your mind.