The cryptocurrency market moves not only with graphs but also with emotions. Two forces that most often drive the pressing of buttons are FOMO (fear of missing out) and FUD (fear, uncertainty, doubt). Understanding their triggers is half the battle; the other half is simple rules that will keep you from making impulsive decisions.
FOMO — Fear Of Missing Out
Fear of missing an opportunity.
When the coin rises by +30% in a day, Telegram channels scream 'everything is flying!', and friends are already writing 'I have already made money!'.
And you think: 'Am I worse?'
This is FOMO — pure adrenaline that shuts off logic.
What is FOMO and how does it work
Signs:
'Everyone has already made money, only I haven't.'
Buying at the peak of news/tweets, when the candles are green like spring grass.
Comparing yourself to others' profit screenshots.
Why it arises:
Social proof: the brain loves to be in the majority.
Scarcity: 'only the last wagon remains'.
Dopamine: quick wins of others seem repeatable and easy.
How to counteract:
Entry plan in advance: levels, volume, stop, take profits. No plan — no deal.
DCA instead of chasing: buying in parts according to a schedule, not the news.
The 'night sleep' rule: big decisions — only after 1 night of sleep or a 60-minute break.
Limiting exposure: a cap on the amount of 'hype purchases' (for example, no more than 1–2% of the portfolio).
Reminder on the monitor: 'Did I trade the plan for an emotion? Cancel.'
FUD — Fear, Uncertainty, Doubt
Fear, uncertainty, and doubt.
This is the opposite of FOMO.
When panic news starts: 'exchanges are closing', 'Bitcoin is dead', 'everything is lost — sell now while it's not too late!'
At this moment, many are emotionally selling at the bottom. Then the market turns — and a new wave of FOMO begins.
This is how we ride the market until we learn calmness.
Signs:
Panic selling on headlines 'market end'.
Exiting long-term ideas without changing fundamentals.
Procrastination and paralysis when it's time to act according to the plan.
Why it arises:
Uncertainty and informational noise.
Loss of control: no stop/plan — only fear.
How to counteract:
Sources: follow 2-3 verified analysts/resources, the rest — in 'mute'.
Decision checklist: has the thesis changed? has the level of invalidation been breached? is this just noise?
Predefined action triggers: for example, a breakout of the trend line + closing below the level = reduce position by 50%.
Technical 'muffler': hide PnL during decision-making — numbers provoke emotions.
Why the market loves emotions
The crypto market is essentially a mirror of collective psychology: when the majority is afraid — opportunities arise, when everyone is greedy — a bubble forms.
There is even the famous rule of Warren Buffett:
Be careful when others are greedy, and be brave when others are afraid.
Sounds simple, but doing it is emotionally difficult.
How to boost trading psychology
Plan instead of impulse. Write down entry and exit points in advance.
Limit risk on each trade. Small risk = less panic.
Keep a trade journal. After a few FOMO purchases, you'll see how costly emotions are.
Divide capital. Part for long-term, part for trading. This makes it easier to keep a cool head.
Remember: there is no 'last train' in the market. There are only those who got on it too emotionally.
Conclusion
FOMO whispers:'Buy now, or you will regret it.'
FUD says:'Sell now, or you will lose everything.'
And the smart trader thinks:'What does my plan say?'
Emotional control is your most powerful indicator.
Technical analysis gives signals, but money is made with a calm head.