👌 To All of Us FOMO Sapiens In This World of Cryptocurrencies
If you are investing or speculating in the world of cryptocurrencies you are very likely to be familiar with the Fear of Missing Out (FOMO). FOMO is based on the idea that somewhere else something awesome is going on, something that you don’t want to miss.
FOMO is a cognitive bias, defined as the fear experienced by individuals when faced with the thought that they might miss out on a social occasion, a new experience, a profitable investment or a satisfying event (Przybylski, Murayama, DeHaan & Gladwell, 2013).
We don’t want to miss out on a potential spike in the price of certain project. In your head it usually goes something like this:
Hmmm...a coin rises 30% in value. Should I buy? It seems other people believe in the project, right? And what about IOTA? It seems people think it is the future of crypto. Maybe I should just get it although it has gone times 3 in the last week. Don’t want to miss this! Ooohh, and what about Cardano? That also seems like a solid project, invest! Oh yeahh, and what about that purple one in the corner?!
People are reading the papers and watching the news and now suddenly all start opening accounts at Coinbase. Everyone wants to get in and does not want to miss this train of profitability. But is it the right moment? Yes? Really the right moment? It never is the right moment for everybody simultaneously.
We are all FOMO Sapiens. But stay aware of the cognitive bias or it will potentially cost you a lot of money. So before pressing the buy button, ask yourself this question ‘Is FOMO at play here?’. Waiting a little bit is not always a bad idea.
I am not saying that buying at that particular moment is a bad decision. Just make sure you did the FOMO-check on your decision. Remember that saying YES to something, always involves saying NO to something else and you can spend your money only once...
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Disclaimer: I am not a financial advisor, trader or developer. I am just a blockchain & cryptocurrencies enthusiast. Make sure you do your own research, draw your own conclusions and do not invest any money that you cannot afford to lose.
That's a good read. Well done. The FOMO is very strong in the market right now for sure.
Especially with IOTA!