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FUD and FOMO Explained for Crypto Investors

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FUD and FOMO Explained for Crypto Investors

If you have been around in the Crypto industry for a while you have probably heard the words FUD and FOMO. These terms are often used when referring to crypto investing but also come up with other investments such as stocks. We will discuss how FUD and FOMO relate to the cryptocurrency space.

FUD is an acronym for Fear, Uncertainty and Doubt. The term refers to someone who is unreasonably pessimistic about crypto. The person may feel negative towards crypto for plenty of reasons but this high level of pessimism is usually caused by bad news that is being spread around social media. If FUD is high enough the market can drop but the market can also lower first and then FUD rises because of it. FUD is at a high level with the recent market drop.

On the contrary, FOMO is an acronym for Fear Of Missing Out. When there is a lot of good news going around with a coin someone may fear missing out by not being invested in it. FOMO could cause an investor to buy a coin with no research or just because it has already seen significant gains and there is anticipation for more in the future. An example of this is people who bought Doge near 70 cents because it has seen a rise in price and they do not want to miss out on it spiking higher. Dogecoin is currently trading at 8.6 cents at the time of this article. 

FUD and FOMO affect crypto investors in different ways but both can damage someone's portfolio. Now that you know more about these terms you can protect yourself from emotional investing and stick to a plan. Which do you believe is worse for crypto investors? FUD or FOMO?

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