How to avoid falling into a FOMO trap

[JessicaVL]

Most new traders are easy targets when it comes to falling into a FOMO trap. FOMO stands for “Fear of Missing Out” and usually occurs when there’s a lot of hype around a new project or a new development in an established project, that traders are scared of missing out on. But here’s the thing, giving into FOMO can actually be hugely detrimental to a crypto trader’s efforts. We’ll be looking at how to avoid falling into a FOMO trap, so that you can keep your trading efforts sustainable and avoid giving into hype. Here are 5 questions to ask yourself:

https://www.youtube.com/watch?v=dasfUZXrMqQ&feature=emb_title

1. Does this sound like paid hype?

The first question you need to ask yourself when you’re trying to avoid falling into a FOMO trap is: Does this sound like paid hype? Paid hype essentially means that a crypto influencer or other’s in the cryptosphere have been paid to hype up a particular project, usually without knowing whether or not it actually has a chance of being a success in the long run.

This can be particularly impactful on new traders, who often look to figures in the crypto industry to direct them towards sound and secure projects. Unfortunately, many people are in it for the money, and may promote a scam without much care. If you’re hearing about a project from an influencer, be sure to do your own research thoroughly before considering buying in. Doing your own research is vital to making a successful trade. And if something seems odd, definitely wait the FOMO out. 

2. Are there a lot of controversial statements being thrown around?

Maybe you’ve heard about a new platform and have done your own research, but there are a lot of conflicting and controversial statements being thrown around. Firstly, good for you for doing your own research. However, if opinions are generally conflicted about a coin or a project, it’s probably a good idea to wait a bit and see what happens.

Often, conflicting information is a sign that a project is unstable or too risky, and you’d be better off sitting it out. You can always buy in later if it seems like things are going well, but don’t give in to FOMO if you’re uncertain. Risky trading doesn’t make you a better trader, it is

far more beneficial to be cautious and to make the right decisions.

3. Who is the authority pushing this information, and can you trust them?

Do you know if the person or entity promoting a certain project is trustworthy? If you’re skeptical, you should probably stay away. Unfortunately, there are some individuals and authorities that use crypto and crypto trading to take advantage of people, especially people who are newer to trading. When you see someone pushing a particularly project, ask yourself whether or not they themselves are trustworthy, and whether the project that they’re promoting seems viable or realistic.

Ultimately, if neither seem legit, you should most likely stay far away. You can always keep an eye on the project and buy in at a later stage.

4. Has this been done before?

When looking into a project, you should definitely ask yourself, “Has this been done before?”. If the answer if yes, you would be better off avoiding the project altogether. Why? Well, it would make more sense to buy into the original project, than into a knock off. We’re not talking about something like a hard fork, because that’s a different situation entirely, but rather projects that seem eerily similar to other platforms that are operating under somewhat false pretenses. Those projects are most likely going to fail, as they don’t provide anything new to the cryptosphere.

5. Does this investment stretch beyond your financial means?

When you first start trading, it’s incredibly important that you evaluate how much you can afford to trade with, and start from there. If a project requires an investment that is outside the realm of affordability for you, it’s crucial that you don’t stretch yourself just to give in to FOMO. Rather wait and build yourself up to a point where you can comfortably make that investment, and then buy in. Giving into FOMO at a time when you cannot afford to can be especially disastrous.

So, how to avoid falling into a FOMO trap particularly when it comes to your finances? Wait it out.

https://www.youtube.com/watch?v=fh9Hfh2tzs4&feature=emb_title

Avoiding FOMO

Now that you know how to avoid falling into a FOMO trap, you’re prepared to take on the world of crypto trading. Bitcoin trading and altcoin trading can feel incredibly daunting to start, but once you’ve got the hang of it you’ll find yourself flying in no time.

If you’re new to crypto trading and want to learn the ropes in a safe and encouraging space, check out eToro, the world’s leading social trading platform.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.



https://www.etoro.com/blog/market-insights/how-to-avoid-falling-into-a-fomo-trap/

[rosezionjohn]

Now that you know how to avoid falling into a FOMO trap, you’re prepared to take on the world of crypto trading. Bitcoin trading and altcoin trading can feel incredibly daunting to start, but once you’ve got the hang of it you’ll find yourself flying in no time.

This is obviously not quite true. Learning how to distinguish a FOMO and avoiding it is just one step. We all know there are more things to learn before we can really say that we are "prepared" to trade bitcoin and altcoins.

If you’re new to crypto trading and want to learn the ropes in a safe and encouraging space, check out eToro, the world’s leading social trading platform.

Are you being paid by etoro to advertise their platform? Please clarify so readers will have an idea who they are dealing with.

[Darooghe]

In my opinion, there’s honestly no way to avoid it, you have to make mistakes to learn from them. However you can mitigate the amount you loss, so next time you see a coin going way up, and you don’t want to miss out, just put $50-$100. It’s going to take a few losses for you to never FOMO again, there’s no other way. however, to me there is a distinct difference between trading and investing. my trading strategy does not rely on catching big green pumps at all.  I learned to ignore these, and continue searching for my desired set-ups instead. I stick to my setups, and my rules, etc.

[Nadziratel]

You can try to escape from FOMO. But that doesn't mean you can. Because the sense of making money is a very strong instinct. It takes more than a few suggestions to break it. Or having too much money.

[santiPOGI]

That was a good point, but to avoid them it to control your own temper and have you own research and studies. our own knowledge and research will get us out of any loss.
Though i know we can't avoid them 100 percent, but still it will always depend on us on how we will entertain them, if we have no brain to use we will always get the bait.

[aomakun]

That was a good point, but to avoid them it to control your own temper and have you own research and studies. our own knowledge and research will get us out of any loss.
Though i know we can't avoid them 100 percent, but still it will always depend on us on how we will entertain them, if we have no brain to use we will always get the bait.

doing your own research can indeed make you more direction for investments made, although certainly not 100% successful but it would be better if the investments made can we know the potential, and don't be afraid to try to do your own research

[Darlingtona]

Running away from FOMO is by doing your own research and monitoring as if you follow FOMO you will end up crashing or earning so self research is better.

[Rcoinmoon]

This is really deep, have fallen for this fomo of a thing so many times, thanks for this piece of information it will go along way to save my ass from this traps

[confreslamp]

Great post mate, I hope this would help to avoid overhyped projects, because a lot of people are investing in overhyped project and losing money at the end. It is much better to spend some time by your own research instead of listening to strangers.

[Palider]

It's best to confirm that this news is fake and is intended only to scare investors, because most people now believe the news that they are suddenly emerging as a reason to fall victim to FOMO. So you should search for the truth immediately, and not based on words that are not true.

[Hamphser]

In my opinion, there’s honestly no way to avoid it, you have to make mistakes to learn from them. However you can mitigate the amount you loss, so next time you see a coin going way up, and you don’t want to miss out, just put $50-$100. It’s going to take a few losses for you to never FOMO again, there’s no other way. however, to me there is a distinct difference between trading and investing. my trading strategy does not rely on catching big green pumps at all.  I learned to ignore these, and continue searching for my desired set-ups instead. I stick to my setups, and my rules, etc.

Yeah right, sometimes the market itself is very unpredictable that you would think it is being manipulated by the whales. It is only effective if you are currently hodling or accumulating coins for your long-term investment plan. But if you were a day trader it's kind of that hard to avoid FOMO specially if there are massive movements in the market.

[shinratensei_]

If you’re new to crypto trading and want to learn the ropes in a safe and encouraging space, check out eToro, the world’s leading social trading platform.

Are you being paid by etoro to advertise their platform? Please clarify so readers will have an idea who they are dealing with.

It sounds like Op is shilling for etoro and a youtube channel. I have visited the youtube channel that already mentioned by OP and it looks like so many negative reviews about someone must pay a lot for the membership.

OP, sometimes the bulltrap is happening, but in another way, market can't grow without FOMO. It's about how good you are to identifying the fundamental of the market to determine is there an excellent fundamental that creates FOMO or not.
In crypto what you have called as FOMO trap is a bulltrap.

Not so many people are aware of how to avoid bulltrap consider about it can happen anytime — the only best thing to go out when we are in profit.

[Stanlo]

If someone followed what OP said they will end up leaving crypto space and shut the door for good, why? because their is no way to avoid FOMO, solid projects has them, crap projects are not left out, where is left to run to?

[rhomelmabini]

Yeah we experience FOMOs or seen one in the past but how can you really tell if there will be FOMO happening because even projects that are supported fully by this experts been lie low and even it is unique in a sense. To avoid FOMO just don't gamble your money onto something you can't lose, FOMO will be there to stay it is your choice to avoid it.

[BonfireBob]

Do not listen what influencers like McAffee says, and do your own research!

[Herbert2020]

hype is not a bad thing just like pump and dumps aren't if you are looking from a perspective of a trader who is looking to make profit which is what everyone around here want to be!
FOMO is bad if it is idiotic and based on nothing. otherwise a trader could always benefit from "FOMO" in general for example when you see this happening you could buy that shitcoin but sell it fast. even making a 5% profit in a matter of hours is great and you won't find it anywhere else. another use for a trader could be to see the fake hype like when a large number of newbies come to bitcointalk to advertise a shitcoin as a sell signal to dump it on those newbies and get his profit out.

[LouVandetta]

One way or another whether you're an experienced traders or not, Fomo is hard to avoid. I've seen friends of mine who has more experiences in trading than me was caught in FOMO. And regardless if you could avoid fomo, you're still not set to jump in into crypto world. There are lots of things to be prepared for. Well, fomo doesnt always ends up with bad outcome, but the risk is very high. And I hope whatever your choices are will be a good one.

[iv4n]

Do not listen what influencers like McAffee says, and do your own research!

This is a good one, and lets add to that many other influencers! Many of them are taking money for that, and they talk about what they are paid for. In McAfee case its a proven thing. I follow many of them and I read what they wrote, and in many cases its funny. I wouldn't trust them with my money.
Do a research, and make your own decision is the best thing anyone can do. Avoiding FOMO, FUD, and other stuff is hard, they are always be here, on forums, social networks, who is active cant miss that. Only thing is focusing on your choices and interests, let others do their talking and you do what needs to be done!

[Getmon]

FOMO is sometimes more of a problem on the part of the person getting victimized. FOMO traps are everywhere. Now, take a look at yourself. Are you the kind of person that gets too super excited about hypes and marketing promotions? If you are, try to calm yourself down in the face of a market that is full of scam and FOMO traps. Do not instantly believe the words being released on social media sites and websites. They are almost always FOMO traps.

[vintages]

It  is simple and practical of avoiding falling into FOMO.
Simply, do not follow the trend but do your own things your own way. Being trendy or following the trend has made a lot of people to fall into wrong direction.
And moreover, buy when the price is convenient for you and not when you see everyone rushing into it.