FOMO: Fear Of Missing Out

FOMO is an acronym for “Fear Of Missing Out”. It is not exactly a crypto term, but gained popularity as Bitcoin and cryptocurrencies as a whole started to see a rise in adoption. The increase in prices created fear among people of missing out on the opportunity — creating a FOMO.

Moreover, FOMO is generally used to denote an emotion during a bullish rally or when crypto prices start to rise after a correction or bear market, making a trader or investor rethink his investment strategy to invest or not.

How FOMO Drives Crypto Adoption

FOMO creates anxiety in people about missing out on the crypto opportunity, making them enter the crypto market. This helps drive massive crypto adoption. Historically, people started entering the crypto market when Bitcoin, blockchain technology, and other cryptocurrencies gained traction due to their benefits and innovation for the future.

When Bitcoin prices started to rise during 2017 due to the rise in bitcoin mining and institutional adoption, it created a FOMO in people. The resultant rally drove the emergence of other cryptocurrencies. The fear of missing out has made governments, institutions, companies, investors, etc. enter the crypto market.

Why It Is a Bad Investing Approach

FOMO causes investors, especially retail investors, to lose money as they usually invest in a bullish price movement. Investing during fear can lead to bad decision-making. It is always recommended to research and analyze before making an investment. However, dollar-cost averaging (or DCA) is one of the most efficient strategies for retail investors to manage risks.

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About author
Disclaimer

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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