Topic: How to avoid falling into a FOMO trap (Read 542 times)

Firstly, the most important thing here is how an Investor can identifying if a recent spike in price of a project is just a paid hype to create FOMO probably by developers to dump tokens on the greedy Investors hoping to capitalize on the spike to make some profit. Identifying this trap are quite easy as the movement of the price of each project tells a story. A healthy growth of a project concurs gradually but an unhealthy one can be identified with a spike which is mostly cause by whales or group of pump and dump traders manipulating the price of that project to draw attention to it.

Did a post sometime ago on; qualities worth developing as a crypto enthusiast (Investor). been skeptical was one project of those qualities as developing that will guide you in regards to trusting any project to fall for FOMO traps, understanding the reason behind those spike and not just blindly chasing them is a great way to avoid been a victim.

Every market will have FOMO news that directly affects people's psychology and this is inevitable when you choose to invest. I think if you are holding some big coins since 2017 then you are making a huge mistake. For now, you should only trust yourself and should evaluate that coin with your knowledge. Of course this will greatly reduce the risks in trading.

Yes indeed the points above make sense. But sometimes people ignore it just for gambling. In the sense that they chanced in following the fomo. Because sometimes fomo isn't a bad thing either. It could be that fomo was created from good news on a project so that some people dare to spread it.
Fomo must indeed be addressed properly before plunging into it. We must first check whether this fomo comes from good news or only fake fomo.

The hardest thing here is avoiding those kind of thoughts like "hm, there too many people who think that everything is gonna be cool, they invest, they can't be wrong, there are too many of them..."
Dude, most of the people are making mistakes much more often than you think. Constantly.

still difficult to know the mindset of the whales who make fomo or fud. but at least we choose a coin that has a good future. not all altcoin will be pumped up, and I think altcoin has the potential to experience it, because it attracts investors to invest. and vice versa we must anticipate the possibility of fud, and therefore we need a good strategy

Correct. Being consistent and know what you are doing will allow you to avoid certain fuds or fomo's that happened around. Knowing all the grounds
of your chosen project/s it will help you to understand when to buy and when to sell, anticipations is very important as it is a good guide not to fall
with any fomo's. Keep yourself updated and always think twice before dealing with any decisions that you will be taking.

We kind of have to believe all the short term information available to public is already being reflected on pricing, if you really do have some kind of information that most people can’t get their hands on, then you can follow FOMO

TO avoiding FOMO we should have consistent and we have to determined where we gonna buy and where we gonna sell, so any fud or fomo will not affected us because we know when we buy and when we want sell.
It's not easy doing this moreover we see another coin which not in our trades growing and pump so high, we must be doubt our trades, but if we follow the wave like that we will trapped by fomo. So, be consistent is the key of avoiding FOMO

its truelly has no relation with technical analisys. It just mind and trader psychology when they see suddenly price grow up. They thinking if they dont buy it , will miss best opportunity to get profits.most of coins influenced by hype and fomo, to avoid trapped in this condition we must deeply and regularly make research in crypo projects , so we will find which projects that will growth naturally. Market and trading manipulation common to happen now , and we have to be smart to identify it.

FOMO is sometimes not related to technical analysis, usually due to fundamental factors that are only for a moment. In my opinion, FOMO is more influenced by psychological factors and I think it's better to avoid coins that have suspicious price movements so that we are not trapped to buy coins at high prices

most of traders lately entering market , they see price going higher and higher. Looking this movemennt they trapped in fomo and finally get price at the peak. To avoid this trap we have to regularly find an update from developers team in coins that we will buy, so we will not miss important news that will be trigger price movement. No more FOMO it we could do this strategy and our money will save from losses.

it seems difficult to understand, we can't avoid FOMO, it's manipulation !, but if you buy cheap and the coin is exposed to FOMO then it has an increase you have to analyze it by determining the resistance you can read it and hopefully you sell it right

Avoiding FOMO requires some discipline and expertise. Discipline in trading entails a trader has a plan which he follows not taking trades along the line. Expertise helps to distinguish between what's real and what's not.

This is valuable advice because this is exactly what pump and dumps are designed to do which is generated hype with positive price action to move the market and then it usually experiences a steep decline in value after all the hype wears off, so scoop up undervalued assets whilst they're cheap and you'll likely benefit more

I am in HODL and accumulation mode since 2013 for the most part.

Thus, I am ALWAYS, in FOMO mode.

I have to be, or I would have sold all my BTC when it went 10x the amount I mined it for.

All HODL'ers are in FOMO mode. Fear/Of/Missing/Out.

If we thought, with only 3 million or so BTC left to mine, in a crypto-universe of, as I like to say, 'virtual land' that is limited.

Well, you have to be FOMO, or you sure as hell would not HODL since 2013, IMHO.

or my 'odd' take on such

Brad

In fact, with cryptocurrency, everything is not so simple and clear, and therefore it is impossible to completely avoid falling into the trap of fomo. You can't be sure that some coin will behave one way or another. Just if you want to buy something, then invest a small part of the funds so that you dont mind losing it in case of failure.

Totally agree with a bunch of people above me, just ignore the market newcomers and you will be safe. Stick to already established currencies and face the fact that the times of 100x ROI in couple of months are probably over for good, so chasing the new hot thing would be way too destructive for your overall portfolio. You can still make big bucks investing in a lot safer bets.

Personally, I avoid FOMO by simply avoiding investing in any cryptocurrency I hadn't already heard of before the hype started appearing. That automatically cuts out practically 100% of pump and dumps.

Secondly, I adhere to the 60/3 rule. If it is breaking news causing the price, I need to invest within 60 minutes to ensure I can still develop a nice profit, whereas if it's more than 3 hours after the news drops, I wait and watch to see how the market is acting before investing.

These have protected my ass on more than one occasion, though I've still held for too long far too many times.

This may not be enough, because when FOMO begins, you have very little time to think.
As a rule, everything happens very quickly, you see how the price is growing rapidly and everyone is screaming that it is time to buy.

Do you have time to think about these moments? In such moments, time flows very quickly, so all you can do is prepare for this event in advance.
The best method will be to study all past FOMO in order to understand their nature.

In this case, the chance that you will not fall into the trap and be able to play your cards as much as possible is much higher.

Uhh...one of the first things crypto traders need to do is control their emotions, with fear being one of the biggest.  Fear of missing out, fear of losing money, fear in general all can and have caused investors to lose money and it'll keep happening.

Fortunately the market right now isn't in a state where there *is* any FOMO, and I'd like to point out that because of that it might be a very good time to buy in, whether it's altcoins or bitcoin.  Next year with the halving and whatever else might be going on in crypto, bitcoin is looking like a screaming buy right now.  It seems stuck in a rut (as do many altcoins), which might be the brightest buy signal you could ever get.

It’s very cool that you put together a few principles, but for me no principles were useful until I wrote them on a piece of paper and hung them in front of the monitor, when I want to buy some kind of asset, I immediately go over all the items that I have there are listed and make a decision, I did not upload them here since everyone has their own psychology and everyone needs to create rules specifically for their brain.

FOMO traps must be avoided so they are not trapped in them. when an altcoin is always in the positive news and prices continue to rise until it reaches the highest price, many people who want to follow it and believe it will go higher, this is what should be avoided. This will make FOMO even worse. If there is already a FOMO and is stuck at a high price, then when the price is down people who buy at a high price will experience a big loss. This FOMO occurs because usually a controversial statement supporting FOMO can occur. We must be wise in responding to something and not just join in.

Agreed.

Other's might misunderstood OP's statement if he is not going to edit it out and change it to something more realistic. FOMO is just a way to make people rush their decisions on something, everyone would rattle, especially newbies if they've heard a bad news or a rumor that they should buy or else they are not going to make profits in the long term investment in cryptocurrency, or the other way around.

This also depends on how mentally strong a certain person is, or how knowledgeable he is for him not to be fooled by strangers who's spreading fake news.

FOMO is the biggest nightmare for someone who follows crypto (trader/investor/bounty hunter)
newbie or pro, sometimes can not avoid FOMO, there is a desire to always follow and finally be trapped.
my own personal opinion, it's definitely hard to avoid that. BUT, there might be a right solution which is don't try follow and read the news about crypto and once bought to hold, target for high ambitions in the future (don't sold). it sounds funny but it's a bit effective haha

FOMO trap mostly happens to new traders and investors. I think you can avoid the FOMO trap by focusing on having a long term plan for your crypto strategy and be carried right away by FOMOs. The more you become a good trader, the more confidence you have in sticking to your crypto strategy.

I think that a lot of things have change now since the moment people realized this too after the bull run of bitcoin that trapped people's money in the value of $19800 till date and they have not learnt, I have seen lots of events this year that was more than enough for people to fall for FOMO and yet they did not.

Let's take a look at when the Litecoin halving news started and the project team created lots of hype for it, it was really not the halving that was expected to make the value of Litecoin go up, but the FOMO that would have risen out of it, but when the halving came, people did not make much move about the project at all and the halving was a success without it having any effect on the value of the Litecoin.

This was the same way the bakkt news too broke out and despite the talks about it before it’s released and some people who were not willing to fall for FOMO anticipated that it could have effect but we still saw that nothing happened.

The FOMO is a practically impossible trap to avoid, and it concerns all the sectors in which we are involved.
In a world bombarded with information like the current one, the fear of escaping that very important one is always lurking.
I have no other solutions than Zen meditation ...

I'm not sure it's even possible to avoid FOMO... it's just part of the game. The trick is figuring out how far along a pump is. For instance, those who had FOMO issues when BTC was on its previous run in 2017, saw it go from 1K to 5K and panicked and invested more than they should, did quite well so long as they sold at 20K. It's all about determining where the tops and bottoms are.

And of course that's close to impossible to do, but if you get semi-close, you'll be fine. A better way to phrase things is not to fall into the FOMO trap during a ridiculous situation, like a coin just increased 20x ... that's probably not the ideal time to make your entry point. It's useful to track where a coin pumped from, what the low point was, and then you know where whales gobbled up coins and how much profit they are making. If it's some insane amount, walk away. If it's early days still, it's something to consider (still no sure thing, but at least you have a fighting chance).

Thank you for this information, it looks pretty cool, I think it will be useful to many beginners in the crypto. However, this information is not enough to start trading.

improving level of consciousness as trader might works on customs with formal discussion as expecting use with returns of work of other trader as they might have with customs on expertise to returns of supports with signals as disposing of worse as waste to put on table as preparing option on position with the market of exchange.

Fear of missing out is really an everyday occurrence for guys at the bottom trying to work there way up the investment ladder. Fear of missing out often grabs hold of me, till the pint where I don' think rationally and jump into a financial endeavor. It is always more important to practice ones Due Diligence and take the necessary time to plan out things accordingly and try to minimize any common mistakes one often pitfalls into!

Some good research will definitely save the investor and indeed, owners have their own way to attract investors. Anyone with knowledge of digital coins wont be easy to fool. The problem is, mostly people join crypto currency out of craze and greed. This approach s not the right one. If they are not interested in reading abut new projects, then at least they should invest in the old ones like bitcoin or ethereum.

Fomo is based on the accumulation of basic price movements and everything is seen on chart charts and macd patterns. if this accumulation is related to the sentiments of many new traders who will open a position, then the percentage will move quickly to reach the point of resistance, this is a natural example of fomo.

There is indeed an unnatural phenomenon where sentiment starts with a bull trap, and then there are parties who post massively to many channels in the next hour, this is what we should avoid.

Well, FOMO is not really a "trap" there is one thing in bitcoin world that I always trust and that is bitcoin will always go up, maybe not today, maybe it will be lower next year but in the end it will definitely be higher in the long run. Same goes for not that many coins, ethereum looks good, eos looks good, but tbf there are not that many.

So, if you want to pick a coin that you want to invest then you have to trust yourself and work hard and research hard of that coin and just trust the coin because some other people told you it is going to skyrocket. Other people who own that coin will always talk about it like it is the last coin that ever existed and will ever exist and it should be going to 100 billion dollars market cap real soon because they honestly believe that.

Usually, Fomo's traps always succeed in deceiving new investors or traders who don't understand cryptocurrency.  Panic due to unclear speculation on the basis of the analysis raises the fear of being left behind to get profit.  That is very fatal, especially when one determines a buy position when it is peaked and suddenly the price drops.  that's what often happens.  it is very important that every investor and trader has a concern to learn and understand the cryptocurrency ecosystem so that panic does not occur because you already have an analysis.

Right, this is not a simple thing.  need complex analysis, mental strength, and determination to maintain analysis. FOMO can also be an opportunity as you mentioned if we are able to analyze market movements and determine the exact buy and sell positions before the FOMO fades and prices fall further.

Its not simple as we thing,there is no definite practical way to avoid it completely but we can keep ourselves from these things for not getting trapped.Don't simply follow any news make your own analysis as well then decide based on two things.Sometimes FOMO can saves as well before falling into long bearish market so just accept the things after your decision no one has complete control on these things.

This is a very detailed write up and i was able to learn a thing or two from this post due to the fact that i have been a victim of fomo in the past. Its really sad to be used as a stepping stone to enriching someone's wallet. People fall for fomo because of the alluring benefits/rewards gotten from hitting the right project. My new principle and it works a lot for me. I only buy when others are rushing to sell and sell when others are rushing to buy. Try it and i am certain it will work for you too

The last say is still really on us, if we can control ourselves and think rationally, we can guarantee that 100% of not falling into this FOMO since FOMO is not only being encountered here in the cryptospace but even in the real world, out of jealousy and desire to be "IN", that thing that makes you say yes into outings, shopping and anyyjing about spending evwn though you can't afford it.Yes to this, its the intention of what are the current trend that should also count as one to be considered so that you will know if you're gonna let yourself getbswayed bybut, which is in the first place you shouldn't, to be critical about where you are spending and what you will do with your coins.

Recently there was a group created specifically just to show people the failures of others I'm the Cryptocurrency space, this channel is dedicated to forwarding sob stories from people all over the world who has made the wrong investments, this group helps me to avoid the FOMO disease by constantly reminding me about what the others who has FOMOed in the past are really going through and I have to admit that if you are in that channel and you cannot avoid FOMO, then nothing would ever make you change and learn to do extensive research before investing anywhere, the name of the channel is Rekt Plebs.

On the contrary, I think that the trend sets the direction for further correct actions.Luck is accompanied by the presence of You at the right time in the right place.

Fomo is usually made by a group, not the real results of the potential coins. the easiest thing might be like that but if you look deeper you should see the coin portfolio section because it will be seen when doing research

Once you learn to question everything to ascertain the underlying motive you will be less likely to fall into a fomo trap.

All of those may apply but I usually stand at one mean to validate my unclear thoughts regarding what are the origin of this hype, is this real or not. I do a clear research regarding the gossips. And I ask my fellow friends who are crypto enthusiasts as well if they have heard about this certain news, is it even real, is it happening or not. If I validated it on my own hand with a connection of ideas of my friends and fellow crypto enthusiast then I maybe clear that I won't be falling at FOMO traps.

I would like to share one type of mistake which newbie do mostly, thinking it as FOMO>
Some shitcoins are heavily manipulated and most of the times, a group of people pump it in a certain exchange. It's easy to recognize. Just visit the coinmarketcap and find out if the coin has same price at all the exchanges. If you see huge price different in several exchanges, it's certainly a pump and avoid the coin.

To avoid a FOMO trap you should be act accordingly you must compare some of available data in the market, Sudden pump are just created by some whales to drive a particular coin or token and some of the people specially newbies are easily get attracted that's why they are easily trap in the web of FOMO. and when the percentage of target price was achieve massive dump will follow. that's the truth about FOMO.

Agree, I have learned my lesson from this and that is not all the time to watch over with the price, I would just rather invest in a stable coin such as Bitcoin and Ethereum rather than investing in altcoins thinking and hoping that they will make me rich someday but ended rekt, so we should all learned from those hype and manipulation from the team, let us obey our instinct sometimes and we can do right decision by doing research.

Watching the daily price movements on small timeframes will make you stressful and upset. Instead of staring at the screen, go to do another activity and learn to control your emotions under every kind of situation in the volatile crypto markets. The trading patterns repeat in all timeframes but only impatient people prefer to make small daily trades for boosting their profit.

True, beware of hype. You can see this on the charts. I learned my lessons on this that until now I have tokens that have no value because of hype. Now, when its price already high I  sell my positions and stop trading . I just observed what will happen and set a buy positions on its weekly low and wait.

You are right, every coin can be read its movements and must pay attention to the volume for 7 days. Signs of rising prices above 20% can be a reference if the coin is being targeted for FOMO. there are several groups that target FOMO for certain coins, this will benefit the group owner and the victims are people who join the group and follow the account owner's instructions. What can be done to avoid it like you said, Choose coins with accumulative movements only.

Buy when you know that you are willing to take the risk and forget about the hype. Remember to keep yourself well aware to what the reason
behind of certain rise. Most of the time those who are rushing are the one who become victims of certain fomo's , people who forget about doing
proper research and blindly conclude to join the ride, remember that this market have volatile nature make sure that you are mentally ready.

Don't watch the price movement too often. Let the price come to your rather than chasing the price. Set your buying and selling price for a coin and don't sell if you are in loss. If you are trading the top tier crypto, you need not worry about the price in long term. Just don't make a decision in panic and let your plan execute.

There is always negative and positive in FOMO too, but most of the time it is becoming negative, as there are groups of people once they love this coin and they invested at dip price they will make FOMO over social media, over the community for them to attract members and when they have seen that the volume is increasing then that will be the time they will dump the price.

FOMO which is always deliberately made including successfully taking new victims. but some will choose to study the pattern, if they see the price of a coin is already above 20% suddenly, they will understand that it is not normal and choose coins with accumulative movements only. It is better to look based on the chart period and hope that the coin you buy turns out to be the next FOMO team's choice each coin can be read for its movements and most often coins whose volume is very low for 7 days.

FOMO is often thrown into new projects, and the criteria they often throw are prices and exchangers. they will say that prices will be very low and disappear, this will make project investors very worried even though the project manager has said everything will be okay. FOMO's goal is to want to take everything. and the next is the statement about the token that will not be released to the market exchange. it's clear that if the team works every day, then one day a token will be launched to the market exchange and this FOMO effort to influence the token holders immediately leaves their tokens or even sells them to certain people.

it is fitting that we think twice when hearing negative news from the project. let's see how the team works and everything will be fine. do not let FOMO make us fall into the wrong choice and regret.

The only way to minimize FOMO is not to see strong growth in a short time that you plunge into it, the experience of follow-up research will limit that way. on it, be extremely cautious in short and medium term trading to reduce the amount of money you have lost when the situation becomes entangled.

It all depends on where you fomo in of course, but if we focus on the mass, they generally do fomo into the market when it has peaked out, so in that sense it can be seen as a trap, but one they fell into themselves.

I have always distanced myself from fomo buying, which is why I start accumulating when the price has gone down at least 50% from its high. I'll happily buy the price down once or twice a month to prepare for the next leg up.

Dollar cost averaging is the easiest way to position yourself into the market with little to no understanding of technical analysis. It's not as exciting as opening a large position in one go, but definitely less risky.

Fomo is not a trap, its presence can't be ignored when you are into crypto, it helps and sometimes it doesn't, this is where investors have to make a choice

It is true that people who have just joined the cryptocurrency world will usually be trapped in the FOMO condition that is used by others to get more benefits. The FOMO trap becomes a detrimental trap, because people will buy at very high prices, then prices will fall back to normal prices before FOMO. I myself have felt the trap of FOMO and from that moment I started to learn not to follow the FOMO trend.

It  is simple and practical of avoiding falling into FOMO.
Simply, do not follow the trend but do your own things your own way. Being trendy or following the trend has made a lot of people to fall into wrong direction.
And moreover, buy when the price is convenient for you and not when you see everyone rushing into it.

FOMO is sometimes more of a problem on the part of the person getting victimized. FOMO traps are everywhere. Now, take a look at yourself. Are you the kind of person that gets too super excited about hypes and marketing promotions? If you are, try to calm yourself down in the face of a market that is full of scam and FOMO traps. Do not instantly believe the words being released on social media sites and websites. They are almost always FOMO traps.

This is a good one, and lets add to that many other influencers! Many of them are taking money for that, and they talk about what they are paid for. In McAfee case its a proven thing. I follow many of them and I read what they wrote, and in many cases its funny. I wouldn't trust them with my money.
Do a research, and make your own decision is the best thing anyone can do. Avoiding FOMO, FUD, and other stuff is hard, they are always be here, on forums, social networks, who is active cant miss that. Only thing is focusing on your choices and interests, let others do their talking and you do what needs to be done!

One way or another whether you're an experienced traders or not, Fomo is hard to avoid. I've seen friends of mine who has more experiences in trading than me was caught in FOMO. And regardless if you could avoid fomo, you're still not set to jump in into crypto world. There are lots of things to be prepared for. Well, fomo doesnt always ends up with bad outcome, but the risk is very high. And I hope whatever your choices are will be a good one.

hype is not a bad thing just like pump and dumps aren't if you are looking from a perspective of a trader who is looking to make profit which is what everyone around here want to be!
FOMO is bad if it is idiotic and based on nothing. otherwise a trader could always benefit from "FOMO" in general for example when you see this happening you could buy that shitcoin but sell it fast. even making a 5% profit in a matter of hours is great and you won't find it anywhere else. another use for a trader could be to see the fake hype like when a large number of newbies come to bitcointalk to advertise a shitcoin as a sell signal to dump it on those newbies and get his profit out.

Do not listen what influencers like McAffee says, and do your own research!

Yeah we experience FOMOs or seen one in the past but how can you really tell if there will be FOMO happening because even projects that are supported fully by this experts been lie low and even it is unique in a sense. To avoid FOMO just don't gamble your money onto something you can't lose, FOMO will be there to stay it is your choice to avoid it.

If someone followed what OP said they will end up leaving crypto space and shut the door for good, why? because their is no way to avoid FOMO, solid projects has them, crap projects are not left out, where is left to run to?

Ive once experienced fomo but it resulted into good money. Yeah trying to avoid it will only cause you stress. It's quite inevitable and very tempting especially if the news is true and confirm. But since then, I always confirm first if the news is relative and legit. Many writers are paid to do some shitty articles that most of the time misled people and becomes a victim of fomo.

I guess they should prefer Technical Analysis than buying out of news to avoid this fomo.

It sounds like Op is shilling for etoro and a youtube channel. I have visited the youtube channel that already mentioned by OP and it looks like so many negative reviews about someone must pay a lot for the membership.

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OP, sometimes the bulltrap is happening, but in another way, market can't grow without FOMO. It's about how good you are to identifying the fundamental of the market to determine is there an excellent fundamental that creates FOMO or not.
In crypto what you have called as FOMO trap is a bulltrap.

Not so many people are aware of how to avoid bulltrap consider about it can happen anytime — the only best thing to go out when we are in profit.

It is just a normal emotional form of the crypto trader who has addicted to seeing reversed cow effects in the volatile crypto markets. The tremendous opportunities in the crypto markets have accelerated the FOMO and they know what will happen if they miss the next trend. Waiting is the hardest part of catching the pump or uptrend and impatient people want to get a quicker results.

Yeah right, sometimes the market itself is very unpredictable that you would think it is being manipulated by the whales. It is only effective if you are currently hodling or accumulating coins for your long-term investment plan. But if you were a day trader it's kind of that hard to avoid FOMO specially if there are massive movements in the market.

It's best to confirm that this news is fake and is intended only to scare investors, because most people now believe the news that they are suddenly emerging as a reason to fall victim to FOMO. So you should search for the truth immediately, and not based on words that are not true.

Great post mate, I hope this would help to avoid overhyped projects, because a lot of people are investing in overhyped project and losing money at the end. It is much better to spend some time by your own research instead of listening to strangers.

This is really deep, have fallen for this fomo of a thing so many times, thanks for this piece of information it will go along way to save my ass from this traps

Running away from FOMO is by doing your own research and monitoring as if you follow FOMO you will end up crashing or earning so self research is better.

doing your own research can indeed make you more direction for investments made, although certainly not 100% successful but it would be better if the investments made can we know the potential, and don't be afraid to try to do your own research

That was a good point, but to avoid them it to control your own temper and have you own research and studies. our own knowledge and research will get us out of any loss.
Though i know we can't avoid them 100 percent, but still it will always depend on us on how we will entertain them, if we have no brain to use we will always get the bait.

You can try to escape from FOMO. But that doesn't mean you can. Because the sense of making money is a very strong instinct. It takes more than a few suggestions to break it. Or having too much money.

In my opinion, there’s honestly no way to avoid it, you have to make mistakes to learn from them. However you can mitigate the amount you loss, so next time you see a coin going way up, and you don’t want to miss out, just put $50-$100. It’s going to take a few losses for you to never FOMO again, there’s no other way. however, to me there is a distinct difference between trading and investing. my trading strategy does not rely on catching big green pumps at all.  I learned to ignore these, and continue searching for my desired set-ups instead. I stick to my setups, and my rules, etc.

This is obviously not quite true. Learning how to distinguish a FOMO and avoiding it is just one step. We all know there are more things to learn before we can really say that we are "prepared" to trade bitcoin and altcoins.

Are you being paid by etoro to advertise their platform? Please clarify so readers will have an idea who they are dealing with.

Most new traders are easy targets when it comes to falling into a FOMO trap. FOMO stands for “Fear of Missing Out” and usually occurs when there’s a lot of hype around a new project or a new development in an established project, that traders are scared of missing out on. But here’s the thing, giving into FOMO can actually be hugely detrimental to a crypto trader’s efforts. We’ll be looking at how to avoid falling into a FOMO trap, so that you can keep your trading efforts sustainable and avoid giving into hype. Here are 5 questions to ask yourself:

https://www.youtube.com/watch?v=dasfUZXrMqQ&feature=emb_title

1. Does this sound like paid hype?

The first question you need to ask yourself when you’re trying to avoid falling into a FOMO trap is: Does this sound like paid hype? Paid hype essentially means that a crypto influencer or other’s in the cryptosphere have been paid to hype up a particular project, usually without knowing whether or not it actually has a chance of being a success in the long run.

This can be particularly impactful on new traders, who often look to figures in the crypto industry to direct them towards sound and secure projects. Unfortunately, many people are in it for the money, and may promote a scam without much care. If you’re hearing about a project from an influencer, be sure to do your own research thoroughly before considering buying in. Doing your own research is vital to making a successful trade. And if something seems odd, definitely wait the FOMO out. 

2. Are there a lot of controversial statements being thrown around?

Maybe you’ve heard about a new platform and have done your own research, but there are a lot of conflicting and controversial statements being thrown around. Firstly, good for you for doing your own research. However, if opinions are generally conflicted about a coin or a project, it’s probably a good idea to wait a bit and see what happens.

Often, conflicting information is a sign that a project is unstable or too risky, and you’d be better off sitting it out. You can always buy in later if it seems like things are going well, but don’t give in to FOMO if you’re uncertain. Risky trading doesn’t make you a better trader, it is

far more beneficial to be cautious and to make the right decisions.

3. Who is the authority pushing this information, and can you trust them?

Do you know if the person or entity promoting a certain project is trustworthy? If you’re skeptical, you should probably stay away. Unfortunately, there are some individuals and authorities that use crypto and crypto trading to take advantage of people, especially people who are newer to trading. When you see someone pushing a particularly project, ask yourself whether or not they themselves are trustworthy, and whether the project that they’re promoting seems viable or realistic.

Ultimately, if neither seem legit, you should most likely stay far away. You can always keep an eye on the project and buy in at a later stage.

4. Has this been done before?

When looking into a project, you should definitely ask yourself, “Has this been done before?”. If the answer if yes, you would be better off avoiding the project altogether. Why? Well, it would make more sense to buy into the original project, than into a knock off. We’re not talking about something like a hard fork, because that’s a different situation entirely, but rather projects that seem eerily similar to other platforms that are operating under somewhat false pretenses. Those projects are most likely going to fail, as they don’t provide anything new to the cryptosphere.

5. Does this investment stretch beyond your financial means?

When you first start trading, it’s incredibly important that you evaluate how much you can afford to trade with, and start from there. If a project requires an investment that is outside the realm of affordability for you, it’s crucial that you don’t stretch yourself just to give in to FOMO. Rather wait and build yourself up to a point where you can comfortably make that investment, and then buy in. Giving into FOMO at a time when you cannot afford to can be especially disastrous.

So, how to avoid falling into a FOMO trap particularly when it comes to your finances? Wait it out.

https://www.youtube.com/watch?v=fh9Hfh2tzs4&feature=emb_title

Avoiding FOMO

Now that you know how to avoid falling into a FOMO trap, you’re prepared to take on the world of crypto trading. Bitcoin trading and altcoin trading can feel incredibly daunting to start, but once you’ve got the hang of it you’ll find yourself flying in no time.

If you’re new to crypto trading and want to learn the ropes in a safe and encouraging space, check out eToro, the world’s leading social trading platform.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.



https://www.etoro.com/blog/market-insights/how-to-avoid-falling-into-a-fomo-trap/