Fear Of Missing Out
Fear Of Missing Out, or FOMO, is an emotional response often experienced in trading and investing scenarios. It's the fear that an opportunity will pass by, causing you to miss out on potential profits. This can lead to impulsive decisions, such as buying an asset during a price surge.
"The sudden surge in Bitcoin's price triggered FOMO among investors, leading many to buy in hopes of making quick profits."
FOMO can be a driving force behind market trends, particularly bull runs. When a coin's value starts increasing rapidly, it can elicit FOMO in those who are not invested, pushing them to invest due to the fear of being left behind.
"The rapid rise in Ethereum's price led to a wave of FOMO, with many investors buying in fear of missing out on further price increases."
While FOMO can lead to short-term gains, it can also result in losses if the price of the asset drops after the purchase. It's important for investors to make decisions based on careful analysis rather than emotional responses.
"Investors who bought Bitcoin during the 2017 bull run driven by FOMO experienced significant losses when the price dropped in the following months."
* All terms and definitions may update as the Cryptionary improves.