[ Crypto ] What is FOMO in cryptocurrency?

What is FOMO in cryptocurrency?

With the change on blockchain every day, it will have fear of missing out (FOMO) which is driving some of the gains in all cryptocurrency and Bitcoin right now. Normally that would concern us – if we were talking about traditional stocks and other financial products. But we’re not.

When it comes to Bitcoin and Ethereum a bit of FOMO is good for the cause. But when it comes to other crypto, new, initial coin offerings, (ICOs) and what we like to call “trashcoins”, well, FOMO takes on a whole different tone.

However this is still early days. So fear of missing out (FOMO) with Bitcoin and Ethereum is limited to those who understand the long term potential on offer here. FOMO for trashcoins is pure greed and speculation, wanting to find returns like the millions of percent that Bitcoin saw in the recent years – and that is a worry. But with crypto that has genuine network value, it’s just smart money going to where the opportunity lies.

FOMO does also worry those thinking about getting into crypto but yet to pull the trigger. Even you might be thinking that FOMO is a risk to the price of Bitcoin or Ethereum right now. FOMO is a bizarre acronym. You might have seen it on social media previously. Believe it or not, FOMO is a legitimate psychological condition. And it’s never been as prevalent as it has been since the turn of the century. With the rise in social media, the human condition has evolved to all new levels of stress and anxiety. On cryptoconomy, a crypto trader who buys a coin and does not plan on selling in the foreseeable future is call a holder of the coin.

Thus, as crypto trading is still very much driven by emotions rather than valuation, FOMO is a huge factor to consider when swing trading in crypto.

From Internet

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