As an investor, you can stumble upon FOMO, one of the worst financial advisors ever. FOMO (Fear-of-Missing-Out) can lead to serious and irreversible mistakes. To fight cryptocurrency FOMO, you must first accept it, then do research on the digital coins you want to invest in. Say you want to buy the biggest cryptocurrency – Bitcoin. Check the BTC price USD, determine if the price is good enough to generate ROI in the bull market, and keep calm when your potential FOMO tells you to fritter away important savings.
The same goes for any other cryptocurrency craze that makes you wonder, “What if they know something I don’t know?”. Nothing can guarantee high returns, so be realistic when you venture into a volatile market.
Did you know that the FOMO concept has deep prehistoric roots and has helped people evolve through competition and survive? Ideally, feelings of irritation when someone takes pleasure in something should be motivating. Sometimes, the anxiety caused by realizing you could do better drives you to work harder. But in reality, and especially nowadays, the fear of missing out can poison your existence and leave you vulnerable to scams. The “once-important survival tools” make no sense anymore in the digital era or in the cryptocurrency world.
Here are some tips to help you make mindful crypto investment decisions the next time you feel a burning desire to buy a digital asset that has gathered a lot of hype.
Understand what’s the issue with crypto FOMO
The cryptocurrency market is still unstable, and FOMO is a significant force here. There are mind-bending examples of individuals growing rich overnight because they invested in the “right” asset early. It’s, therefore, easy to wonder whether you should jump headlong because the money you’ve put aside doesn’t generate more.
The biggest success stories are related to the market leaders, Bitcoin and Ethereum. People are already well aware that blockchain and digital currency have fantastic potential, and even though only some people caught the Bitcoin train, investing in a coin that may grow big fast might be possible. No one wants to miss out. That specific coin’s value can sometimes depend on how many people see potential in it. Thus, sudden changes in the market mood led to crypto’s ups and downs, creating what you may see as an opportunity to hit the jackpot.
And because the barrier to entry into the trendy crypto world is low, many traders and investors need more relevant education and experience. It’s not rocket science that these are the best targets for scammers looking to play on people’s FOMO and cheat them out of their savings.
How to overcome crypto FOMO
Once the problem is identified, it’s time to deal with it. According to Forbes, there were at least 21,000 cryptocurrencies in December 2022. Clearly, more will appear, and some will try to stand out from the crowd, create a powerful community, offer rewards and incentives, post on social media, and therefore lay the foundation for fostering FOMO. This is one of the strongest emotions that can drive someone to invest in a scam or, at the very least, an unprofitable asset that turns out to be a fleeting fad.
Here, sticking with Bitcoin, Ethereum, BNB, and other similar long-standing cryptocurrencies can keep your feet on the ground when you feel like falling prey to your emotions.
Here are other tips that help keep your wealth safe and your mind at peace.
Learn to commit
Trading crypto is like speed dating; investing is like marriage. Crypto’s underlying value, future implications, use cases, etc., are things you may or may not know when trading. However, when it comes to investing, it can only sometimes be emotionally satisfying. There will be times when you believe you’re right and times when you think you’ve been wrong, and there’s nothing to be done about it.
To gain confidence and trust in the asset you plan to hold for a long time, do thorough research. Confidence and trust are powerful emotions that come when you’ve gone through enough evidence and a process of sound reasoning.
FOMO is a fleeting fear based on biased speculation, envy, and anxiety. It can come from insecurity, but with enough research, you can immunize yourself against it.
Take a break
When you feel like you’ve spent too much on crypto and are unsure whether they’ll go “to the moon” as you believed, it might be high time you disconnected. Mental detox is the easiest way to reduce or eliminate FOMO.
Remember that life isn’t limited to securing your portfolio and future or making money. Join your friends on a short trip (and try to avoid discussions about “hot crypto releases”), do a workout, or play your favourite game; just close that app and shift your focus to the present for a while. Slowing down helps you come to your senses and overcome the anxiety that makes you act ASAP (and make mistakes).
Wonder whether your subconscious is wrong
Many newbies tend to listen to their guts instead of their brains regarding money-making. They have “a feeling” about an asset and can’t resist the urge to get as much of it as possible, only to end up bankrupt. Sometimes, the well-meaning subconscious sabotages the perception of reality, leading to poor decisions. After all, FOMO is a basic instinct as well.
It’s similar to dieting. You should follow your nutrition plan for a healthier body because if you listen to your mind and body telling you, “I’m sure this burger will make me feel better, ” you might eat it.
Defeating FOMO is challenging, but it’s achievable. Gaining a solid knowledge of the crypto market and exploring its advantages, drawbacks, and pitfalls will help you make more mindful choices when your instincts let you down