Have you ever felt anxious when crypto prices are pumping and you’re not in? That’s FOMO.
💡 What Does FOMO Mean?
FOMO stands for Fear of Missing Out.
In the crypto world, it refers to the emotional reaction when someone sees a coin rapidly increasing in value — and rushes to buy it because they’re afraid of missing big profits.
📈 How FOMO Affects the Market:
People buy at the top just because “everyone else is buying.”
It leads to sudden price spikes and sometimes crashes.
It causes irrational investment decisions based on emotion, not logic.
🧠 Simple Analogy:
FOMO is like seeing a long line at a food stall — you weren’t hungry before, but now you want to try it too, just in case it’s amazing (even if it's overpriced 😅).
🔥 Real-World Crypto Example:
In 2021, when Dogecoin or Shiba Inu were skyrocketing, many jumped in because of hype and fear of missing out — even when they didn’t understand the project.
🧘♂️ How to Avoid FOMO:
Stick to a plan (e.g. dollar-cost averaging).
Only invest in what you understand.
Do your own research (DYOR), not just follow hype.
📚 References:
Binance Academy – What Is FOMO in Crypto?
Investopedia – FOMO Definition
#FOMO #CryptoPsychology #CryptoForBeginners #BinanceSquare #BlockchainBasics $BTC $ETH $SOL