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

Alhamdulillah, on this occasion try to review Mini Cryopto Program 2 after previously I have completed mini Crypto 1. Honestly this program is very good especially for I myself am very new to the crypto world. on the crypto program this time about Psychology Influences Market Cycles (FOMO and FUD)

1. FOMO

FOMO (Fear Of Missing Out) can be interpreted as a feeling of envy towards the wealth of others who have many assets. so FOMO is the same thing with envy in our daily life. This FOMO is terrible because it can encourage market users to buy an asset at the peak of the bull cycle (highest price), if we pay close attention to the bull cycle is the beginning of the decline in market prices.

many User new market fall into FOMO, because they think that it is the right time to make a decision for a certain time by predicting that they will get rich soon because they have many assets like many people in a bull cycle. many of the new traders force themselves to buy in the cryptocurrency market in the hope that one day they will get double profits.

2. FUD

what is FUD? FUD stands for Fear, Uncertainly and Doubt. in this condition that affects investors in doing in the crypto market. so that not a few investors suffered losses because they made a fatal mistake on the
misunderstood market predictions. There are many out there who interpret the term "Facts U Dislike".

FUD is one of the tactics to influence the psychology of investors and traders. FUD is used by large investors to lower the price of coins so they can buy them cheaply. This is a tactic they play to spread doubt among novice traders, but professional traders will not be swayed by this.

3. Where Does FOMO Occur?

We explained earlier that it is a feeling and a desire to follow what other people do.
So where does this FOMO happen?

Capture from

As per the chart above it is the highest peak of crypto trading in the market. it is in that cycle where young traders or novice traders are tempted to buy assets because they think prices will continue to rise so they think they will
missed the opportunity to later acquire wealth. This happened because of jealousy earlier, even though big investors took advantage of this moment to take their profits. This kind of condition is a sign that it will be bearish.
In this condition, young traders lose their assets and fall into poverty.

FOMO occurs due to misunderstandings in analyzing the market due to greed and desire to get rich quick, fear of poverty, lack of patience and not understanding market cycles.

4. Where Does FUD Occur?

I have explained that FUD is used by investors to lower asset prices in the market with the intention of playing the psychology of young traders to sell at low prices.

Capture from

in accordance with the picture above where the price dropped so drastically that market users thought this was FUD. FUD is very emotional for someone new to the crypto world. when the market price begins to fall this young trader will feel a tremendous panic and fear.
then from the excessive fear experienced by young traders causing them to sell all their assets. after all assets are sold out they will fall into poverty and depression.
whereas basically in a bearish condition it is not the right time to sell assets because this is the act of big investors to provoke the emotions of young traders. basically a bearish cycle is the beginning of a bullish cycle. The intended bullish cycle is where the price of the asset will start to increase.

Similar to FOMO, FUD also occurs due to incorrect predictions of the crypto market due to the fear of being poor so that it translates into wrong emotions.

5. Select 2 crypto assets to describe FOMO and FUD.

Here I choose STEEM assets and Doge coin, because I feel these two assets feel unique to discuss.

• Steem/USD

Capture from

from the chart we can see that the price changes so that there is excessive emotion for young traders.
the green indicator shows that investors and traders are buying assets, while on the other hand the red indicator shows that traders are selling their crypto assets.

I took the graph from May only, it can be seen that in May there was a very extraordinary spike.
Let's see before May on the date there was a very large sale at a price of 0.5531 K, while after all assets were sold, a very large price spike occurred, precisely on May 08, 2021, at a price of 1.4614 K. This is a condition called a price game by big investors. resulting in FOMO and FUD which cannot be controlled by small fish or young traders.
in such conditions young traders sell all their assets cheaply because of FUD, while in FOMO they buy but at a high price, thus making them fall into poverty.

• DOGE/USD

*Capture from

This is a DOGE crypto chart, from the chart we can clearly see how the investor and trader cycle works. while waiting for May the price was only 0.4k then took a moment to jump to 0.7k because of the emotional influence of FOMO.

5. Conclusion

From the review above, it can be said that FOMO AND FUD are a person's psychology towards the crypto market where many traders are trapped there, while their old traders and investors take advantage of the moment to make a profit. Because they are more experienced in playing the emotions of young traders.
So, traders must be more patient and wise in analyzing the market. That's all from me, I have many shortcomings and maybe far from the expected category, I beg to be corrected.