The Cryptocurrency market is alive and constantly improving. There are new development every day….people are always looking for a way to make money from Bitcoin and other Cryptocurrencies. People want to utilize the Bitcoin price to their own advantage.
So when dealing with Bitcoin and Cryptocurrency, you have to take personal responsibility for making decisions without regretting your actions and decisions.
However, when making decisions about when to buy and when to sell Bitcoin, there is usually a fear that clouds an individual’s decision-making capacity, and it is called FOMO.
- What is FOMO?
- How does it affect you?
- How do you deal with it?
What Is FOMO?
FOMO is an acronym for Fear Of Missing Out. It is a kind of fear that has driven people to make grievous mistakes, lose all their monies, fallen for scams, and made people miserable.
FOMO is a term mostly used in Bitcoin and Cryptocurrency. It is that feeling you have when you feel everyone around you is enjoying something you aren’t or something you have missed.
The anxiety then clouds your decision and pushes you to make certain irrational decisions that may be detrimental.
A practical example of FOMO in Bitcoin is when everyone around you buys Bitcoin when the Bitcoin price is around $5,000, and then it starts rising and gets to about $10,000. You then feel you don’t want to miss out on the opportunity, instead of studying the trend and analyzing the market, you then put your money to buy it at the moment, which can be a very bad decision.
So, FOMO is that intuition that tells you to buy the coin regardless and without a plan. Now that you now have an idea of what FOMO is, how does it affect you?
How Does FOMO Affect You?
FOMO can affect you in different ways, but these five ways are the major ways in which FOMO affects you negatively.
- FOMO affects your decision-making skills
- Your mental health can also be affected. It can cause anxiety and depression
- It can make you lose all your hard-earned money
- It can make you miss out on opportunities
- You can fall for scams through FOMO.
How Do You Know You Have FOMO?
People that are affected by FOMO always follow the crowd. They don’t have the luxury of having a well-scrutinized thought. They just go with the flow.
You can know you have FOMO when one of these questions keep lingering on your mind:
- What if Bitcoin grows to pass this?
- Why shouldn’t I be able to guess BTC price right?
- What makes people that are making a fortune from it better than me?
- Why shouldn’t I try?
- Are you telling me all the people buying it are wrong?
How Do You Deal with Bitcoin FOMO?
1. You need to accept that some losses are inevitable
Investing in Bitcoin is not all up north. Sometimes, you make profits, and sometimes you lose money. You don’t always have to allow the loss to get to you. Some losses are inevitable and are far beyond your power. The earlier you come to terms with this, the more at peace you are with yourself.
So it is okay to miss out on opportunities. You can always find a better opportunity. In fact, losing out is part of the game.
2. You are not the only one
It might look like you are the only one missing out on the opportunity, but the truth is millions of people like you are missing out on the same opportunity.
If you look at the opportunity you are missing out on, see some statistics, and take a deep look at it, you will realize that you are not missing much. It is just the way people pass the information that makes it a Big Deal.
3. Remind yourself that there are Scams out there
The more you have FOMO, the more vulnerable you are to fall for a Scam. In fact, Scammers wait patiently and prey on people that have FOMO.
Scammers understand the market, and they try to make a plan as convincing as possible because they know you are overwhelmed with how you don’t want to miss out on the opportunity. Read about FOMO-based Scams, and you will understand how Scammers capitalize on FOMO.
Whenever you have FOMO, remind yourself that there are scammers out there waiting for you.
4. Take a break
Whenever you feel you have FOMO, possibly because the price of Bitcoin rose to an unexpected level, the best thing to do at that moment is to take a break from trading and engage in other activities.
Things may not work as you may have planned. It is advisable to take a break, take a walk, play games and see some movies. That is not the end of life. It is important to know that more opportunities will show up, you are constantly learning, you won’t miss out on the opportunity next time, and you won’t make the same mistake twice.
5. You are not always right
It is advisable to know that you are not always right. Your subconscious can be wrong and your intuition may fail you. No one knows the future in certainty. Your Bitcoin price prediction can be wrong. All these make you human and even billionaires that make billions of dollars from it make mistakes.
Therefore, always know that you are not always right, and you can make mistakes.
6. Analyze your mistakes
Analyze the mistake you made and the mistakes other people have made, and you will realize most of the mistakes result from the questions listed above and from questions of what-ifs. Avoid them as much as possible.
FOMO and Bitcoin Price
The volatility in Bitcoin price is one of the primary reasons people FOMO. The moment the price fickle, people always jump on the opportunity to buy at a lower price because they don’t want to miss the opportunity. They do this without conducting adequate research to know if the price would continue to fall or not.
These are a few of the ways you can deal with FOMO. Always remember that Cryptocurrency trading is an opportunity, and other opportunities will come forth. Never beat yourself up over Circular Motion.
Educative and insightful…..keep it up.
Thank you Kennedy.