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How to resist FOMO (Fear Of Missing Out)

By Rain İçerik Ekibi - May 09, 7:00 PM

Fear of missing out (FOMO) is one of the main forces at play in crypto investors’ minds, having a significant impact on overall sentiment, and thereby prices, too. Resisting and ignoring it is notoriously challenging, but to help, this article provides some tips you can try today and say bye to FOMO for good.

Why is FOMO impactful

FOMO undoubtedly has significant effects on investors’ mindsets, and thereby on crypto prices as well—but why is that? The answer lies in how the crypto market functions. It is safe to say that emotions, beliefs, and impulsive decisions are just as significant parts of the crypto sphere as thought-through plans and strategies. Now, while the latter, more objective strategies might not be as influenced by FOMO, the more subjective elements are all the more touched.

Because of that, and thanks to the fact that most of the time FOMO has a negative impact on trading performance, learning how to handle it is incredibly vital for becoming consistent and successful with crypto

What’s the meaning of FOMO?

FOMO stands for “fear of missing out”, and it refers to the feeling people get when they, for instance, hear that a crypto asset skyrocketed in value, and they didn’t buy in before the price jump happened. What usually comes next is that they hesitate about getting in, but can’t make up their minds. Unfortunately, every minute they spend thinking the token’s valuation climbs higher and higher, which usually increases their FOMO even more. Then comes a point when FOMO takes over, and they finally commit to buying the crypto token, having already missed out on most of the profits.

How to resist FOMO?

It’s safe to say that with this in mind, resisting FOMO is critical for investors. Beating it can be summarized in three words: goals, discipline, and a cool head. In other words, you will beat FOMO every single time when you set yourself solid financial goals, stick to them no matter what, and keep your cool even amid the hottest bull runs. This does not mean that you can’t get in, it just means you skip the hesitation part and commit to your decision: either get in early, or don’t get it at all. 

Consider this when having FOMO: Would you have sold, or not?

On another note, just consider the following whenever you’re feeling FOMO. Suppose you bought 100 Bitcoin (BTC) when it was $1 each in around 2010, and later that month its price rose to $10 a piece, turning your $100 investment to $1,000 in 30 days. Hands on heart, would you have sold all your coins with a happy smile, and gone on a luxury vacation, or kept them thinking “These will be worth $60,000 one day, I’ll wait”? Let’s be honest, most of us would’ve sold, so even if you got in early, you’d be without BTC today, and even feel worse because you missed out.

FOMO is a really powerful feeling that tries to affect even the most seasoned professionals of the investing industry. However, if you manage to stick to your objective goals, views, and strategies, as well as maybe think about what would’ve happened if you actually got in early, FOMO will quickly become only a thing of the past.

Rain is a Crypto-Asset Services Provider headquartered in İstanbul. Rain provides services to its users at financial institution standards.

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