FOMO is a term that has been used and is the most prevalent in the crypto space for years now, and it is a fear of missing out. In the world of cryptocurrencies, FOMO can be particularly dangerous, because just as the hype around cryptocurrencies continues to grow, and so does the danger of FOMO.
What causes FOMO?
Many people are often worried about missing out on a coin or token that will shoot up in price value, and sell their coins/tokens at a loss. This is because they feel like they have missed out on an opportunity and need to make up for the lost time by selling their coins/tokens at a loss.
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The cryptocurrency market is a rollercoaster of emotions. People are always looking for the next big thing and this is where the FOMO comes in. There are also different emotions you will find in this space as you continue to move in and out of the market.
Panic
In the crypto space, panic can be caused by anything that causes you to feel like you’re losing out on a particular project, Defi, or NFT, and you have to act quickly or lose out on an opportunity.
Impatience
Oftentimes, you might feel that you do not have enough time to make a decision or take action because of being distracted by so many Blockchain Projects vying for your attention and money.
Jealousy
Jealousy when you look around the crypto space and begin to feel that someone else is achieving success without much effort or luck. Of course, you have no idea what they are sacrificing to earn their status in the crypto verse or community.
Fear
This can be caused by uncertainty about how much money you will make from your investment, whether it will be profitable or you'll be running into losses.
How to avoid the fear of missing out (FOMO) in the crypto space
FOMO is a normal feeling and it is not always bad, so you should start by accepting that FOMO is a normal thing to feel. This means that you have to acknowledge that there will be times when you feel like the market might never recover or when your project will never succeed.
However, if you feel like your emotions are getting out of control, then it's time to take a step back and reassess your strategy and follow these ideals;
Make sure you have an investment Plan
It can be difficult to avoid FOMO in the crypto space because there are so many new coins being released daily, but it is important to set up an investment plan to make sure that you are not investing too much into one coin and missing out on other opportunities.
Your crypto investment plan should have long-term, short-term, exit plans, objectives, targets, etc. It should also include your risk tolerance level, your financial needs, the amount of time you want to invest in cryptocurrency, and how much you are willing to invest.
This will help you stay focused on your long-term goals rather than being distracted by short-term gains.
Learn to analyze the charts
Reading and analyzing cryptocurrency charts gives you a better understanding of the trends and trading patterns. The charts of cryptocurrencies will show you how much a cryptocurrency has changed in price over some time.
To get rid of your FOMO you must have the right tools, knowledge, and experience. One way to do this is by looking at the charts from weeks or months or years ago. You might gather a thing or two to use for your future investment portfolio.
Apply Risk management
The primary step to take before investing in crypto is conducting comprehensive research that gives you all the necessary information about the project. You should know everything about the project, including its history, team members, partnerships, and more.
Stop comparing your portfolio
As a crypto investor, it can be disheartening to watch other people make money and win big, especially from projects you missed out on. It can also be discouraging when you find yourself on the losing side of the market.
Since the blockchain is transparent, and we can see through other people's wallets, we are constantly comparing ourselves to other traders. We want to be the best, and we want to know what they’re doing. However, this can lead to a lot of anxiety and stress that can take your attention away from our investment goals.
To avoid comparison with others, you should focus on your journey of success and not worry about how others are doing.
The best way to avoid comparison is by staying invested in your coins and not looking at what others are doing. If you are only reading your news feed to see how well other people’s investments are doing, then it is likely that you will end up feeling like a loser.
For a smooth crypto journey, think long-term
Cryptocurrencies are a new way of doing business and they can be a great opportunity for investors too However, the market is still very volatile and there is no guarantee that it will always grow in value. It's best to take things slow and think long-term.
When it comes to investing in cryptocurrencies, people are always looking for ways to make a quick buck. However, this is not always the best option. The journey of investing in cryptocurrencies is not without its risks, but with patience, research, and following some basic tips, you can make sure that you have a smooth crypto journey.
Conclusion
Cryptocurrency is an open market with many opportunities for investors. To avoid being swept up by FOMO and losing money, it's important to have a plan in place before investing in any cryptocurrency. What you need is understanding what you're investing in and how much risk you're willing to take on your investment.