Mini Crypto Program Part 2 || "How Psychology Influences Market Cycles", by @prudence1

Good day, fellow Steemians!!

It's yet another blessed day on which we had the chance to do another assignment on FOMO and FUD.

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Explain what FOMO is?

FOMO is the is the shortcut for Fear Of Missing Out. It is the feeling one gets when he/she sees a large grease percentage increase on a chart and is not entitled to that coin. Trading in cryptocurrency is more emotionally driven than valuation. The logic behind FOMO is that a delay made by a person may cause that person to lose a huge potential opportunity. The coin that people wish to have can, at the same time, be an effect on the variation of prices.

Explain what is FUD?

FUD is an acronym for Fear, Uncertainty, and Doubt. It is a method or strategy used to give false and misleading information about some cryptocurrencies in order to influence the thoughts of people about those currencies. It is a psychological trick used to spread fear in order to get the lice of a certain coin to drop. And those who benefit from it are those who spread the FUD.

FUD causes the drop in prices of coins by spreading false news on various social media platforms.

Explain where FOMO occur! (Need screenshots)

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From the above screenshot, we can observe from the chart that, FOMO started occurring at the time the green line was progressing. This led to an increase in the value of some specific currencies.

This may cause fear in people who do not own that specific coin, as cryptocurrency is driven by emotion rather than valuation.

Explain where FUD occur! (Need screenshots)

_screenshot

From the screenshot above, we can see that FUD started occurring when the red line started declining. At this point, there will be a decrease in the value of that specific currency.

Choose the 2 cryptocurrencies you want, then use the graph of the 2 cryptocurrencies to explain where FOMO and FUD occur! (Need screenshots)

Bitcoin (BTC)

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From the BTC chart represented above, we can see that there is an occurrence of both FOMO and FUD.

At the beginning, there was an occurrence of FUD in the BTC chart for some period of time, as indicated by the red lines. This could have been due to the bad news or misleading information that people were spreading about BTC, which led to the decrease in value of the BTC coin. Then, as time went on, FOMO started to take place with the increase in the green lines, which brought an increase in the value of the BTC coin.

Tether

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From the above screenshot, we can see that at the initial stage of the chart, FUD was occurring for some period of time, thereby decreasing the value of that specific coin. Then at a point, FOMO started to occur, which also led to an increase in the value of that same specific coin, as indicated by the green lines. Then it started fluctuating. Thus, decreasing and increasing as represented in the chart above.

Conclusion

There is a need for one to understand the trend on which the cryptocurrencies work, thereby not trading with his or her emotions. Critical analysis must be made to see how the rates or prices increase or decrease in the crypto market.

Thanks to liasteem for bringing up such a wonderful exercise.

I will wish to participate in the upcoming exercises.