Cryptocurrencies like Bitcoin have been enjoying increasing popularity for several years. This hasn’t changed after the hype. However, a crypto scene is known for a variety of acronyms and special terms that pose a mystery for newbies. One of these terms is FOMO.
What is FOMO cryptocurrency? What is this acronym all about? What does it mean? Just learn FOMO crypto definition with Switchere!
What is FOMO in Crypto: Everything You Should Know
So, what is FOMO crypto? How was mentioned before, FOMO is an acronym. It stands for the phrase ‘Fear of Missing Out’. The term is mainly known in a crypto world, but FOMO is also used in connection with other financial services.
FOMO, sometimes also referred to as ‘Fomo’, describes a fear of missing out on a particularly profitable business or investment. Good examples are a sale when a price suddenly rises or a bulk purchase of securities when a price is low.
What is FOMO in crypto? FOMO isn’t just limited to a crypto world and isn’t a novelty either. The phenomenon has been known for a long time. On Wikipedia, one can even find common symptoms and options for assistance. FOMO can generally be beneficial to traders. However, uncontrolled FOMO can become dangerous and even lead to a total loss.
FOMO Crypto Definition: How Does It Work & Key Pros and Cons
What is FOMO in crypto world? In the crypto world, FOMO describes a fear of missing out on a good investment opportunity. Quite often, it’s all about euphoria or fantasies when a new cryptocurrency enters the market. But also there is a place for FOMO during strong price fluctuations as well as ups and downs, which supposedly represent good investment opportunities. In addition, FOMO often occurs during ICO and IEO and generally refers to a fear of missing out on a good opportunity or chance in the crypto scene.
What are the Key Pros & Cons of FOMO?
Once we’ve found out an answer to the question ‘What is FOMO cryptocurrency?’, let’s learn something about advantages and disadvantages of FOMO. This is important because there are not only positive but also negative aspects that you should know about.
FOMO can offer some good opportunities that may be of a trader’s interest. The main advantages of FOMO are:
- Favorable buying and selling opportunities;
- FOMO can encourage investment in new coins;
- FOMO can be a good guideline for traders.
Speculated FOMO also has serious disadvantages. The key disadvantages of FOMO are:
- FOMO can lead to a total loss;
- FOMO can lead to unreasonable trading.
What is FOMO Cryptocurrency: What are the Consequences of FOMO?
If there is a fear of missing out (FOMO crypto definition), the consequences are often quite serious. FOMO leads to irrational thinking and can lead to unreasonable decisions in crypto trading. In detail, this means that people buy or sell rashly, although this was actually unreasonable.
FOMO can therefore have negative effects and is best avoided. Another side effect of FOMO is that great fear and trade it triggers can have a strong impact on cryptocurrency prices. Especially when FOMO occurs in large quantities with numerous traders at the same time.
What is FOMO crypto? How do you understand this definition? Just share your knowledge in the comments!