FOMO is one of the most painful mistakes for beginners. When emotions take over, it's easy to fall into the trap.
Take a look at the Dogecoin craze in 2021. People flocked in at 70 cents due to FOMO (fear of missing out), thinking Dogecoin would rise to 1 dollar. As a result, it crashed.
Solution: When you want to buy because of fear of missing out, that's your red warning signal; pause for a moment.
Here's why: If a coin has already risen by 500%, you're no longer an early investor; you're late. You're chasing a coin that has been hyped up, hoping for luck. But more often than not, you're just swept away by the hype, and when the frenzy subsides, your investment will crash along with it.
Practical advice: If you feel like you're chasing a big bull run, take a step back and wait for the market to calm down. Markets are cyclical and there will always be new opportunities. But if you're chasing hype, you're likely to lose money.
