FOMO stands for “Fear of Missing Out”, and in crypto trading, it refers to the emotional reaction traders have when they see a coin rapidly increasing in price and they feel pressured to jump in before it’s “too late.”

Key Points About FOMO in Crypto:

• Driven by emotion, not logic or strategy.

• Traders buy at the top out of panic or excitement, fearing they’ll miss the next big pump.

• Often leads to buying high and selling low when the price crashes shortly after.

• FOMO is amplified by social media, hype, and viral news.

Example:

You see $PEPE or some meme coin up 300% in a day. Everyone on Twitter is bragging about gains. You rush in without research, buy at the peak… and the next day it drops 70%.

How to Avoid FOMO:

• Stick to a trading plan and entry criteria.

• Understand that missing one opportunity doesn’t mean you’ve missed all.

• Use technical analysis and risk management instead of emotions.

• Remember: “There’s always another trade.”

FOMO is one of the biggest emotional traps in trading. Mastering it is key to becoming a disciplined and profitable trader.