FOMO: Its Effects on Cryptocurrencies and Crypto Traders

  1. Price fluctuations owing to impulsive trade: FOMO can be problematic in crypto markets because it causes people to make impulsive decisions based on the fear of missing out, which leads to volatility as people tend to buy quickly and sell quickly. During the late-night hours, this is especially true considering that there are fewer people watching the markets thereby signifying a time when FOMO can run rampant.
  2. Wider adoption: Since people are afraid they will miss out on great opportunities, this leads them to look for ways to enter the market through exchanges or other means. The recently launched Afridex exchange at afridex.io can be used as a case in point.
  3. Discouragement of newbies: First-time traders may likely be discouraged to think that the whales are manipulating the prices of crypto in their own favor. As a result, newbies without proper research may fall victim to FOMO leading to unbearable losses.
  4. Increased emphasis on other trading factors to consider: As a trader, you will need to pay attention to other market signals as well before making a decision. FOMO should never be your only reason for making a trade. Crypto markets are largely unregulated and carry great risk, so it is important to educate yourself and take all factors into consideration before trading.

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AFRIDEX Techlabs Ltd

AFRIDEX Techlabs Ltd

A Defi Blockchain Company, using decentralized solutions to revolutionize finance in Africa.