#TradingPsychology Two psychological forces dominate the crypto market: FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, and Doubt). FOMO: Imagine scrolling through Twitter and seeing everyone celebrating gains from a coin you didn't buy. Thefear of missing out drives impulsive buying, often at the market's peak.

FOMO: Imagine scrolling through Twitter and seeing everyone celebrating gains from a coin you didn’t buy. Thefear of missing out drives impulsive buying, often at the market's peak.

FUD: On the flip side, bad news—like government crackdowns or exchange hacks—spreads quickly and triggers mass panic selling.

Social media platforms like Twitter, Reddit, and Telegram amplify these emotions. A single tweet from a high-profile figure can send the price of a coin skyrocketing or crashing within minutes.

The Echo Chamber Effect

Crypto investors often surround themselves with like-minded people—online communities, forums, and influencers who reinforce their beliefs. This creates confirmation bias, where investors only seek information that aligns with their existing opinions.