Steemit Crypto Academy Contest / S11W01 - The Cycle of Market Emotions.

Hope you all are doing well and good and enjoying the best days of your life. This is me @shahid2030 from Pakistan and you are here reading my post. You all are welcome here from the core of my heart.

This is my participation in a contest The Cycle of Market Emotions organized in SteemitCryptoAcademy by @crypto-academy.

I really enjoy the contest about crypto. I am here in crypto market for last 3 years. I feel I have pretty knowledge about this market, so I can educate people. Let's start our today's article without wasting any time.

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These are the different slogans we use to define the crypto market. You may call it a sign language of crypto. They work as a code words. If you tell these slogans to a normal person he will be unable to understand it, or maybe he gets another meaning out of it. These are the Shortcut terms used in crypto market. Let me explain them one by one.

a) PUMP and DUMP

The term PUMP mean, the raise in the market. When the prices of the currency/currencies is increasing, we say the coin/coins is pumping.

DUMPING is the opposite of Pumping. When the prices in the market is coming down, we say the market is dumping.

b) Going To The Moon

Going to the moon is the term we use for a crypto coin when we see a huge pump in it's price. for example if a coin pump 100% or 200%, we say, it is going to the moon.

c) HODL

Hold is a very simple phenomena, we mostly use this term in common life. Hold mean keeping you stock with you and not selling it. Let me explain through an example: I have bought BTC at $30k, it comes to $25k. So if I will hold BTC until it goes back to $30k or above. Simply holding mean, not selling your commodity.

d) REKT

REKT is the unpleasant time for the crypto trader. It means a substantial loss by the traders. If someone is rekt, it's mean he/she has done a huge lost in crypto.

e) BAGHOLDER

BAGHOLDER is a term used for the investor who have done great investment in a specific coin, and it's price is sufficiently decreased. If the investor is still holding that coin, he would be a bagholder. Here the current revenue of the investor is very less compared to his initial investment.

f) CRYPTOSIS

CRYPTOSIS is actually a psychological situation. It is a state where a person believe he has been overwhelmed by the information about crypto currencies. In short, a person feel he has less information about the crypto world. You can call it crypto anxiety. It's a fact that we see too much new coins, tokens, exchanges, and trends in the market. It's hard to know about them all. By the way we have a coin with name of "CRYPTOSIS" too. It's price is $0.01 these days at CoinMarketCap.

g) ICO

ICO stands for Initial Coin Offering. As it's name indicate it offers their native tokens to the investor. It's actually a fundraising project used in crypto market. When a new coin is launched, they give their native tokens to the investors take major coins such as BTC, ETH and BNB etc from them. They do so to make their newly launched project stable. The collected amount of the stable coins (BTC, ETH etc) are then keep in their assets, which helps grow and raise the coin.

FOMO stands for "Fear Of Missing Out". It's a psychological state of mostly an unexperience or newbie traders in the market. When they see a huge raise in the market, they start thinking they have missed the opportunity of investment and getting too much reward and profit. They become greedy by seeing others profit.They make a decision based on emotions and greed, and mostly face lost due to an unperfect entry.

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As I have mentioned that FOMO occurs during the times of rapid price increase in a market, or a particular cryptocurrency. It makes the investor greedy, they make investment there without any proper research and analysis and get stuck. Never ever try to invest at any coin in FOMO situation.

FOMO actually have three phases: Early Bull Market, Mid Bull Market, Late Bull Market. Let's talk about these one by one.

Early Bull Market.

It's the time when the market or a specific crypto currency shows signs of price rally. As the price start going upstairs, the investors think they have missed the entry and rush into it. They get there entry here.

Mid Bull Market.

As the bull market gets it's momentum and the prices continue to raise, more investors do investment here. They jump into the bull market because of FOMO.

Late Bull Market.

This is the last and most risky stage. Here the FOMO reach it's peak. Here the investors believe the coin will go up further. At the same time he feels irritated of being missing a chance of investment here. They register their entry st this point. Remember this is the most dangerous phase. The prices are more likely to detached from their momentum and a correction or crash can be seen here.

As I have mentioned that FOMO is the the psychological state of an individual. He feels greedy or become jealous of seeing others earning and reward and jump into the market without any research or analysis. It always risky jumping into an already pumped market. Market can crash from here. Let's talk about some major causes of creating FOMO in the market.

SocialMedia Hype.

Their is a hype created on social media about that coin. Everyone is sharing their success stories. They share the reward and profit get from there. It provokes the emotions of the investors.

For example: PEPE coin has created a FOMO in the market some weeks before. Everyone was sharing their profit on social platform.

How we can prevent FOMO?

• Proper Research and Analysis.
• Seek Advice from the experts.
• Control our nerves.
• Stay focused on safe trading.

We can prevent FOMO by doing these things. Proper research and analysis should be made. We have to check whether the pump is real or artificially created by the whales. We can seek advice from the experts. Always try to control your nerves and don't be too much greedy. Try to be focused on normal and safe trading.

The term FUD stands for "Fear, Uncertainty and doubt". It is the spreading of false and negative information in the market. FUD is actually a preplanned rumor, in order to defame a project or mostly some whales do it for getting profit of short selling.

Follow are the Causes that create FUD in the market.

• False News Articles
• Misleading social media posts and trend.
• Negative statement by public figures ( i e: Elon musk)
•Pre planned activities of Whales.

Reasons of creating FUD in the market.

• Defaming a project.
• Manipulating market prices.
• Bringing down the price of a specific currency.
• Whales do it to get profit from short selling.

How to avoid FUD and be safe in situation like this.

As a crypto investor, we must need to be cautious about the information we consume. It should be our priority to verify the sources of news before making any decisions. FUD is ofcourse a powerful tool in the crypto market, but by conducting thorough research and analysis, investors can make more informed and better choices. By doing so they can prevent themselves of becoming a falling victim to price manipulation.

I am showing some major FOMOs and FUFs in BTC since 2020.

FOMO

These two are the highest peaks of Bitcoin. First it made the top of $64k, then we saw a huge dump from $64k to $28k. It was a massive crash. BTC was consolidating for several months and then made it's all time high $69k. It is still the all time high of BTC. Bitcoin was at peak on these two levels. I have heard people saying: Alas! they could have bought BTC at bottom.

FUD

The first all time high was badly crashed by a news in the market. A news was circulating those days, that Elon musk has sold out all his Bitcoins and he stop accepting BTC as a payment method for buying Tesla cars. Second id the recent FUD due to LUNA coin. It caused a worse crash too: from $48k to $15k.

This is all about my post for today. hope you guys have enjoyed reading it, and find it informative. See you soon with a new amazing and interesting topic till, take care.