FOMO — or fear of missing out — is a human emotion that drives many to buy into the crypto craze. It can be a dangerous one as well, as it can cause people to overhype and oversell the market as well as keep them from selling when the hype dies down. Even if you don’t like the word “fear,” there’s a specific term for this phenomenon: GAS — or greed, anxiety, and stress. It’s not just an emotional response to crypto; it’s a psychological explanation for why people are so eager to get into it. So how can you combat FOMO and not let it rule your every move? Here are some helpful tips to help you.
Diversify Your Portfolio
The most important thing you can do to combat FOMO is to diversify your portfolio. This is a very basic rule of investing and it also applies to crypto. You need to spread your money across many different assets in order to reduce your risk. If you have more than a few percent of your portfolio in any one asset, you’re increasing your risk because that one asset could go down and take down your entire portfolio. This is especially true when the asset in question is the crypto market.
Do Your Research
The best way to combat FOMO is to do your research. While emotions are a big part of investing, when it comes down to it, you’re still investing. The only difference is that you’re investing with your head. You need to be able to look at the facts and come to logical conclusions.
Start by understanding the market. This will help you figure out if it’s a good time to buy or sell. You also need to understand the technology and the project behind the coin. This can help you figure out if it’s a good investment and give you more of an idea of how it’s going to be used in the future.
Educate Yourself about the Industry
If you want to be a successful investor, you need to be knowledgeable about the industry. This doesn’t just mean superficial knowledge, but the knowledge and expertise that comes with years of experience. Investors who are less informed about the industry, and who don’t have the proper knowledge and context, are more likely to be swayed by the FOMO in the market. If you want to combat FOMO, you need to educate yourself about the industry. This can be done by reading industry news, researching the different coins and tokens, and researching the companies that make up the crypto market.
If you want to combat FOMO, you need to stay patient. This is a key lesson for any investor that’s new to the market. You need to realize that the crypto market is volatile, and it will continue to be so. People will be buying and selling every day, and it’s going to take time for everyone to get used to this new way of doing business. You also need patience when it comes to understanding the market. There are going to be days when it seems like everyone is talking about a certain coin, but when the day ends, it’s not worth much.
Don’t Oversell and Don’t Give Up
One of the worst things you can do when it comes to combating FOMO is to oversell yourself. If you tell people that you’re a successful investor and that you made millions in the market, you’re going to come under a lot of pressure. This pressure can cause you to make poor decisions and sell too soon. You don’t want to give in to this pressure, but you also don’t want to lose money because you’re selling too soon either.
There’s no doubt that FOMO is a real thing in the crypto market, and it can be a dangerous emotion to succumb to. But it doesn’t have to control your every move. The best way to combat it is by diversifying your portfolio, doing your research, and staying patient.