FOMO: Its Effects on Cryptocurrencies and Crypto Traders

Cryptocurrency markets are quickly gaining momentum in Africa and shores beyond. Regardless, its adoption has been opposed across various national economic schemes as a result of frequent price fluctuations, courtesy of its volatility. In recent months, the price of Bitcoin has very well been a bit of a concern to traders. A question to ask in this regard becomes, what exactly informs the frequent price fluctuations in the crypto space?

Well, there are several factors that affect the price of cryptocurrencies which may hinge on issues such as regulations, cost of production, adoption by masses, utility, and FOMO amongst others.

Fear of missing out, otherwise known as FOMO can be described as a pervasive apprehension that creates the impression that others might be having rewarding experiences from which one is absent. You may be wondering what this has to do with cryptocurrencies. Well, the connection is that FOMO can cause people to act impulsively. If you are afraid of missing out on an opportunity, there are chances that you will be more likely to make risky decisions because the fear of missing out overrides your judgment. This has serious implications in crypto markets, especially when it comes to pumps and dumps.

Some ways in which FOMO is capable of affecting crypto traders and cryptocurrencies likewise, include:

The fourth point as seen above also serves as a caution to traders within the crypto space as impulsive trading can lead to massive losses.

In conclusion, although it might be difficult to avoid FOMO and panic selling, it is possible to manage these emotions so they do not dictate how you trade.

As such, developing and sticking to a trading plan that works for you is the best method, plain and simple. A trading plan should outline the kind of conditions that make a setup tradeable as well as your objectives and the risk that you are willing to take on each trade.

Kickstarting or continuing your trading journey as a crypto trader is sure to be hitch-free with the about trading tips.

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