It is important to avoid misleading information and control emotions when making investments. You must be aware of FOMO and FUD to become a successful investor. This article will explain what FUD is and FOMO.
FUD in the crypto market: There is the spreading of hoax information and information that is not reliable to scare the common people about the movements of the crypto markets. This is done to make the price fall sharply. How is this possible?
What is FUD?
FUD stands for Fear, Uncertainty, and Doubt. FUD is a psychological state that can influence crypto-asset investors’ decisions when trading, buying, or storing coins. In addition, FUD is a feeling that can be consciously created by third parties to influence your choices.
Sometimes the FUD’s fear is based on something ludicrous and not the actual reality. For example, an influencer who has a lot of followers claims that Bitcoin will explode today. In the end, this unfounded statement made ordinary people fearful and took careless actions. This led to a loss of knowledge.
This happens when you spread FUD about the coins you are interested in and attempt to lower the price. Although you believe in this coin, you still want to buy it at the lowest price. Next, create a fake message that you criticize this coin to lower its price. You are trying to scare people by putting FUD on the coins. This is a tactic that makes the coin seem shady and uncertain. It also gives you an argument for selling the coin. You can then invest at a lower price if the price drops.
People will be tempted to invest in your currency because they are afraid of uncertainty or doubt. What is the result? The result? FUD has a greater impact on traders’ decisions than it does spread.
Influencers are often used to run large-scale FUD campaigns because only you can create fear in others and influence their decisions.
FUD: Be prepared
FUD is a general term that refers to FOMO. The best advice you can get is to not sell cryptocurrency out of fear. This is an emotion you want to work on naturally, so it can be more difficult than you might think. However, many options will allow you to take your time before deciding whether you should buy or sell cryptocurrency.
Before investing in cryptocurrencies, you must be educated about them. However, keep in mind that any information you receive about this cryptocurrency, if it is through an obscure source, don’t believe it right away, may mislead you. So please don’t believe everything they say.
Look at the authenticity of the source. For example, are there any recommendations from close friends to you about cryptocurrency investing in certain currencies? Does he have a good reputation for providing investment advice? Let his advice be more valuable than any negative message you receive on a website you don’t know.