📊 What Is FOMO and FUD in Crypto?
In crypto, price moves are often driven by emotions. Two of the most common ones are FOMO and FUD. Understanding them can save you from costly mistakes.
🔥 FOMO (Fear of Missing Out)
FOMO happens when traders buy an asset just because the price is going up fast.
You think:
“Everyone is buying… I’ll miss the move if I don’t enter now.”
This usually leads to:
Buying near the top
Chasing hype instead of logic
Poor risk management
Many FOMO entries happen after the big move is already done.
⚠️ FUD (Fear, Uncertainty & Doubt)
FUD is negative sentiment spread through bad news, rumors, or uncertainty.
It often causes:
Panic selling
Overreaction to unverified news
Selling at the bottom
Not all bad news is real — but fear spreads fast.
🧠 Why It Matters
Markets move on sentiment as much as data.
Those who control emotions usually win, while emotional traders become liquidity.
💡 Key Takeaway
Avoid buying because of FOMO.
Avoid selling because of FUD.
Trade with a plan, not emotions.
