What does FOMO mean in Crypto? FOMO in the context of Crypto is short for “Fear Of Missing Out”. FOMO is the feeling of anxiety or the idea that other people are sharing a positive or unique experience. While on the other hand you are missing out.
Example: “Fear and greed—and FOMO—are driving new bitcoin investors.”
In the context of the financial market, FOMO refers to the feeling of fear and anxiety that you might be missing out on a potentially lucrative investment or trading opportunity.
Crypto investors may feel this when they see a bull rally in a coin or token. However, they have yet to buy it. The FOMO feeling is particularly prevalent when a cryptocurrency rises in value significantly over a relatively short period of time. This sentiment will likely trigger a surge in its price.
The FOMO feeling may drive individual investors, or the market participants as a whole, to make investment decisions based upon emotion, rather than logic and reasoning. This can result in a big bubble in the asset, incurring in greater risks of financial losses.
Otherwise, FOMO can be a marketing strategy to use, triggering the investors’ fear of missing out, as a way to entice investors to take action.
How to get over FOMO? Getting rid of FOMO is difficult. To deal with it, do your own research in the cryptocurrencies before making investment decisions, create a set of rules for trading, or setting limits on the allowable losses and profits.