Being in the cryptocurrency market for a while, there are many terms that people use interchangeably. I will be discussing on these two hottest terms that are frequently used by crypto enthusiasts terms — Fear, Uncertainty and Doubt (FUD) and Fear Of Missing Out (FOMO).
Fear, Uncertainty & Doubt (FUD)
This term is often used in media context to spread FUD to people such that investors will panic and sell off their cryptocurrencies, leading to an increase in supply and thus a lower price for them to enter.
For example, I saw a piece of news in the last few months that India is banning cryptocurrency by a few news outlet. Turns out that India was only implementing stricter measures and regulations but some media chose to report that India was banning cryptocurrency. This is a prime example of FUD because investors panicked and the price dipped because of this false news.
With so much news and articles out there right now, you should be careful and verify any information before acting on it. Time is money in the financial markets. However, you have to be certain and be equipped with accurate information before making the best decisions for yourself!
Fear Of Missing Out (FOMO)
FOMO is a term used in group psychology and this has been researched largely upon.
It has only been brought to everybody’s attention because of Social Media. Psychologists have been studying this phenomenon because most humans are wired to “fit in” within a social circle. This causes people to feel left out easily if they do not partake in any activities within this social circle. For instance, if your social circle is going to a party, you would feel left out if you did not go along with them.
This feeling of being left out is amplified by Social Media when friends share their fun times and memories.
For example, if you did not go to the party, but you see your friends posting on Facebook/Instagram stories or even sending pictures in the group chats, you would most likely feel like you aren’t fitting in. In some cases, you might change your mind to join them at the party because of all the social media you are exposed to. Perhaps you might be familiar with this — know of any friends that often come join you and your party halfway? They might just have joined you out of FOMO! ;)
Bringing it back to cryptocurrency, FOMO applies as well! Many investors jump onto Initial Coin Offering (ICO) or Initial Token Offering (ITO) projects because of the sky high returns that they see on forums. This itself is a grave mistake made by the investor. Investing in ICOs/ITOs often bear large risks because the project is only in its initial stages and problems could happen along the way. Of course, there are good projects but you have to do your own research before jumping in.
I did came across Spiking, crypto project, which I find intriguing. Although Spiking is still in the ITO stages, they do have a stock application up and running on the App Store (even boasting as the top financial app in Google Play Store!). This stock application gives you real time information on stock trading and updates you any big trades made by big investors.
Their cryptocurrency platform of the application is slightly improved, in a way that you can invest money to “follow” these big investors and mirror their portfolio and trades that they make. These big investors are called Whales and their portfolio will be verified by Spiking.
Personally, I would think that these Whales would have a portfolio of steady coins. But, Spiking has their own risk assessment by their own proprietary Artificial Intelligence aid called the RoboBull and they will match your risk level to appropriate Whales! Do read up more on Spiking and visit their webpage to get more information!
By Low Yu Ting, Assistant Manager — Invade Industry
Drawing from its successful and rich experience in the stock market since 2016, Spiking is expanding to cryptocurrency trading! With its unique and powerful trading tool and its AI robot Robobull, Spiking enables traders to easily find whales and mirror the trades automatically. At Spiking, we strive to help traders make better decisions and take the steps toward fulfilling their dreams of achieving financial freedom. Check out Spiking App, Top Grossing Finance App at App Store & Google Play.
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