Fear of Missing Out, or FOMO for short, is a word used to describe the worry you may experience that a cryptocurrency’s price rise may leave you behind if you do not act promptly. Some people are panicked by the green line ticking upwards, and they rush to acquire whichever currency appears to be skyrocketing in price. Fear of missing out drives many, mostly novice investors, to buy ‘the next big victory coin’ that everyone wants. No one wants to be left behind.
While fear applies in all markets, cryptocurrency trading is particularly infused with hearsay and emotion, and FOMO can play a significant role in traders’ decisions on whether to purchase, sell, or hold. Not only can FOMO cause traders to buy cryptocurrency on impulse, but it can also cause them to hold onto a coin long after they should have sold it and taken some profits.