FOMO in buying Bitcoin is not FOMO in selling it, an example

[Call_Me_Guru]

This thread was driven by a post I just replied to, I thought I should clarify it for a wider audience who have that wrong conception about FOMO. The author panicly withdrew his money from Opay upon a false alarm and also related it to the same occurrences in Bitcoin when investors panicly selloff. But in both, FOMO did not apply, Loss Aversion did.

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately. FOMO applies to investments and opportunities when people are reactively involved by pumping their money in with or without a reason or due thoughts, just to partake. On the other hand, if it is selling of Bitcoin for the fear of losing your money, probably prior to a viral information or misinformation that it would fall, that is Risk Aversion. It happens every time, just that many do not know the difference terms.

[Hatchy]

I think you can still use FUD instead. Fear, uncertainty, and doubt are usually associated with situations where you are not sure what will happen next, so you make decisions based on what you think might happen.The false OPay shutdown rumor spread very widely, and if Im correct, this isnt the first time it has happened this year. I saw the news in one of my WhatsApp groups, but the first question I asked when I saw the headline was, How sure is this? I then did a quick research and found out that it was fake.

Some people might underestimate the importance of doing research, but it can actually save you from making a lot of unnecessary decisions. Imagine millions of people who trust OPay and keep large amounts of money in their accounts instead of other banks. Suddenly, you spread a message saying the platform is shutting down in less than 24 hours. How do you expect those people to feel? The point is that no matter how real or convincing an information may seem, you should always try to confirm its authenticity before taking action. FUD can create unnecessary panic and lead to mistakes that you may eventually regret...

[Livingleged]

I think it’s very much clear and anyone that is actually involved in bitcoin knows what FOMO really means. The issue with the OPay was a false security information which can be term as phishing alert, saying  the platform was shutting down in 24 hours, regardless of the truthfulness of the information the first step to take in securing your money is to take it away from the wallet at that moment until you’re fully convinced that it’s completely safe again to use. Same applies to bitcoin wallet, when it is compromised the first step is to take away your coin from that wallet to a safer one.

[Nathrixxx]

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately.

Acting immediately is where the loss is come in because ideally it is not expected, that we have the emotional feelings that we needed to act as quick as possible will trigger the loss we are going to make, this is why whenever there is fear of missing out, we should have an emotional control that could restrict us from making a step further in taking a decision to opt out of the market.

This is also where you tend to know between a professional investor and a newbie, bitcoin network in cryptocurrency is designed as a volatile assets and this shows that they will be time it will fall and also rises, but we are not to be emotionally motivated in making decision based on either of this except we are improfit before taking a decision to sell.

[Karl_3000]

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately. FOMO applies to investments and opportunities when people are reactively involved by pumping their money in with or without a reason or due thoughts, just to partake. On the other hand, if it is selling of Bitcoin for the fear of losing your money, probably prior to a viral information or misinformation that it would fall, that is Risk Aversion. It happens every time, just that many do not know the difference terms.

Risk aversion is not what I have seen bitcoin hodlers using before but it s common to crypto traders. But the traders are still losing at the end of the day. Fomo is different because it is a crypto term just like hodl, whale and so on, but some people may not understand what it is rightly.

[Smartvirus]

I think you can still use FUD instead. Fear, uncertainty, and doubt are usually associated with situations where you are not sure what will happen next, so you make decisions based on what you think might happen.

You’ve got the right idea towards this, Loss Aversion and FOMO isn’t exactly the same thing as, both can differently apply. Loss Aversion can apply in cases where you are already invested in the project while FOMO can be either before or after.

In Loss Aversion, it’s you trying to be proactive towards protecting what profit you have by acting fast.

In the case of FOMO, the narrative above might apply but also, it’s a drive that pushes prospective and active investors to invest while the market might be pumping with hopes to catch the next big move. This can make individuals invest near the top and later find Bitcoin dumping.
Depending on your purpose for investing, it might not have much impact on you as an investor or it will, it’s all about the purpose.

I’ll leave it at the point that, it just isn’t a crypto term as all school of thought has one.

The false OPay shutdown rumor spread very widely, and if Im correct, this isnt the first time it has happened this year. I saw the news in one of my WhatsApp groups, but the first question I asked when I saw the headline was, How sure is this? I then did a quick research and found out that it was fake.

It’s the first I’ve seen this year and I knew right away that, it was a fake alert. Why?
It wasn’t coming from Opay on their newsfeed or notification timeline. I was already used to getting updates from official sources on maintenance and other activities that is usually done on bank apps, most times these activities are done at nights and this took a completely different turn.

Regardless, such important notification don’t come as a matter of urgency but, it takes weeks to apply and Opay was still in good business.

[Hyphen(-)]

This thread was driven by a post I just replied to, I thought I should clarify it for a wider audience who have that wrong conception about FOMO. The author panicly withdrew his money from Opay upon a false alarm and also related it to the same occurrences in Bitcoin when investors panicly selloff. But in both, FOMO did not apply, Loss Aversion did.

What happened about OPay wallet uses is FUD due to fear of losing their money because OPay wallet is completely centralized, and I think they are right to fear losing their money. Relating it to Bitcoin is what I can’t take because it is something completely different, it can only be related to centralized exchanges or some centralized wallets due to fear of hack and so on.

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately. FOMO applies to investments and opportunities when people are reactively involved by pumping their money in with or without a reason or due thoughts, just to partake. On the other hand, if it is selling of Bitcoin for the fear of losing your money, probably prior to a viral information or misinformation that it would fall, that is Risk Aversion. It happens every time, just that many do not know the difference terms.

Yes, FOMO is related to investments especially altcoin and sometimes Bitcoin for people who don’t understand it properly and will want to invest quickly.
Beginners should consider looking at different factors that can be affected, if they don’t have enough money, buying by all means cannot help them, it will lead to loss of more money especially if the market go bearish; they should try to have some savings and only invest the amount they can afford to lose.

[MainIbem]

This thread was driven by a post I just replied to, I thought I should clarify it for a wider audience who have that wrong conception about FOMO. The author panicly withdrew his money from Opay upon a false alarm and also related it to the same occurrences in Bitcoin when investors panicly selloff. But in both, FOMO did not apply, Loss Aversion did.

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately. FOMO applies to investments and opportunities when people are reactively involved by pumping their money in with or without a reason or due thoughts, just to partake. On the other hand, if it is selling of Bitcoin for the fear of losing your money, probably prior to a viral information or misinformation that it would fall, that is Risk Aversion. It happens every time, just that many do not know the difference terms.

I knew it was inspired from the other FOMO thread when i saw it, nice thread anyway. The OP of the other thread related FOMO to opay based on the fear of losing funds but the FOMO we know of that relates with cryptocurrency occurs when someone makes rational decision cause they don't want to miss out during a surge, things like using funds that's meant for daily activities to buy when there's a pump happens as a result of FOMO.

[Sammye3]

FOMO triggers more buy order while risk aversion triggers a sell order. I think it's quite the opposite in this case when viewed from the bitcoin perspective, but with the Opay scenario I think its neither of the two.

The Opay app is a bank for savings, not an investment that could appreciate or depreciate in value, so it could be considered as risk management. Though the picture you created is a bit connected but it's still seems a bit unrelated to me.

Nice post by the way...

[Nathrixxx]

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately. FOMO applies to investments and opportunities when people are reactively involved by pumping their money in with or without a reason or due thoughts, just to partake. On the other hand, if it is selling of Bitcoin for the fear of losing your money, probably prior to a viral information or misinformation that it would fall, that is Risk Aversion. It happens every time, just that many do not know the difference terms.

Risk aversion is not what I have seen bitcoin hodlers using before but it s common to crypto traders. But the traders are still losing at the end of the day. Fomo is different because it is a crypto term just like hodl, whale and so on, but some people may not understand what it is rightly.

I will rather prefer to be an investor rather than a trader, take it on leave it the risk in Trading is more higher than investing, because if you are an investor you only needed to hold for a more longer period of time, why trading has its own demand for you to be more precise about the market pattern at a particular given time, that is why it is inevitable to lose when trading and more safer being an investor because all you needed to do is to hold.

[CryptopreneurBrainboss]

FOMO and Loss Aversion are different, FOMO is clearly the Fear Of Missing Out, Loss Aversion is simply the fear of losing if you did not act immediately.

You can have a *fear of missing out* for not taking profits when others where selling (and you want to sell too) but instead you decide to hold through but regrets later when the market starts correcting but the more popular term for that is FUD. Every thing you explained can be classified under F in the FUD which stands for FEAR. And here's an advice for anyone feeling this, instead of constantly being in fear of the market, you can turn that fear into some positivity by buying Bitcoin anytime you feel fear to sell. Do this often and you'll get over your fear of the market as that isn't something to keep hold of as it prevents you from enjoying the market and being among the beneficiaries of the gains hodling Bitcoin should have given you instead of allowing fear to deprive you of that.

[Plutomanian]

I think it’s very much clear and anyone that is actually involved in bitcoin knows what FOMO really means. The issue with the OPay was a false security information which can be term as phishing alert, saying  the platform was shutting down in 24 hours, regardless of the truthfulness of the information the first step to take in securing your money is to take it away from the wallet at that moment until you’re fully convinced that it’s completely safe again to use. Same applies to bitcoin wallet, when it is compromised the first step is to take away your coin from that wallet to a safer one.

Securing our funds is quite different from FOMO in the market. If a trend about a wallet is been compromised, what's your next steps? It's simple, move your money from that wallet to a more safer wallet and ensure you're also protecting your seed phrases because security do comes first. It's very important we know exactly what we're doing in the market because it's a broad space where misinformation trends at the end of the day and God knows I'm not ready for any trends that wouldn't lead me to become profitable.

Our priorities should be set straight and that's ensuring at all times that we're on the right side of the market and when I mean right side, you're dwelling on basic information that are right and useful and not some random information that's not clear and leading one to make couple of mistakes and we do know what happens next.

Been safe is everything in the market, no need to panic because when you panic, fear gripped in and you know you're alone in the market with emotional decisions and actions to take, not always end well. So I would urge everyone to always take their time to study the market and become very disciplined, patient enough and consistent with crypto related activities.

[Call_Me_Guru]

I think you can still use FUD instead. Fear, uncertainty, and doubt are usually associated with situations where you are not sure what will happen next, so you make decisions based on what you think might happen.The false OPay shutdown rumor spread very widely, and if Im correct

No pal, you are not correct. Loss Aversion and FUD could interrelate, they are not the same thing. The interrelationship mostly confuse people. In both cases of Opay and Bitcoin, Loss Aversion happens by your direct action to withdraw your money in Opay or Sell your Bitcoin. But FUD is what triggered your reaction to do so. That is the fake news in Opay example, rumour and whatever acted as the catalyst or reason in other situations.

this isnt the first time it has happened this year. I saw the news in one of my WhatsApp groups, but the first question I asked when I saw the headline was, How sure is this? I then did a quick research and found out that it was fake.

Opay has been victim of this propaganda. Sometimes I wonder what some people think with between their hairs and their brains. Opay is insured and stronger than some commercial banks in Nigeria by financial asset and even stronger than many banks in Nigeria by market valuation and are well-regulated by the CBN. Will CBN of today make them take people's money away like that?

[Nwada001]

Securing our funds is quite different from FOMO in the market. If a trend about a wallet is been compromised, what's your next steps? It's simple, move your money from that wallet to a more safer wallet and ensure you're also protecting your seed phrases because security do comes first. It's very important we know exactly what we're doing in the market because it's a broad space where misinformation trends at the end of the day and God knows I'm not ready for any trends that wouldn't lead me to become profitable.

Some people mistake FOMO for security, which is why they generalize it. If there is anything that has to do with wallet security, it can cause panic in the market, no doubt, but that’s a totally different case compared to looking toward how to secure your wallet from the reach of those compromises, and not because one wallet is compromised don’t make a case for an avenue for the person to jump into any random wallet. Proper research and choosing the well-recommended ones are also still required.

[Grace333]

In business and investment, fear has been a major constraints to the growth of most companies or business even to as little as the idea itself. Fear can make an individual loss focus on their intended goal and aim of starting up their investment. Well anyone who knows bitcoin. Knows what volatility is. Meaning you can't separate bitcoin from volatility the highest you can do is risk evaluation and management which is common among bitcointalk members. However what I'm saying is, fear doesn't always end well. In fact it can cause you regret of a lifetime.

[Cryptomultiplier]

I think you can still use FUD instead. Fear, uncertainty, and doubt are usually associated with situations where you are not sure what will happen next, so you make decisions based on what you think might happen.The false OPay shutdown rumor spread very widely, and if Im correct

No pal, you are not correct. Loss Aversion and FUD could interrelate, they are not the same thing. The interrelationship mostly confuse people. In both cases of Opay and Bitcoin, Loss Aversion happens by your direct action to withdraw your money in Opay or Sell your Bitcoin. But FUD is what triggered your reaction to do so. That is the fake news in Opay example, rumour and whatever acted as the catalyst or reason in other situations.

this isnt the first time it has happened this year. I saw the news in one of my WhatsApp groups, but the first question I asked when I saw the headline was, How sure is this? I then did a quick research and found out that it was fake.

Opay has been victim of this propaganda. Sometimes I wonder what some people think with between their hairs and their brains. Opay is insured and stronger than some commercial banks in Nigeria by financial asset and even stronger than many banks in Nigeria by market valuation and are well-regulated by the CBN. Will CBN of today make them take people's money away like that?

From my own context, FUD is a leading cause that can always trigger loss aversion and the pain of making losses in the market is twice stronger than the joy of winning same amount lost, psychologically.

Trying to preserve capital from loss in the market is known as loss aversion or risk aversion and when it concerns Bitcoin, it is trying to exit the market before the price dips further by applying certain actions like panic selling or moving funds from one wallet to another.

There's of course a clear contrast between FOMO and FUD and loss aversion even though FUD and loss aversion work hand in hand to produce a result occasioned by false news as in the case of the fake news about OPAY.
FUD is the false information people hear and it is up to them to believe it or not, but how they react to the false information is what creates the actions of loss aversion or risk aversion.

[osasshem]

On the Opay event that spread so wild, I will tag it with FUD: Fear, Uncertainty and Doubt. The uncertainty that it is true or false will make you take a decision to safe guard your funds, not because you don't trust the system, but you're not sure of what the action would be based on what's visible already.

While FOMO is on another level in this context. The market is moving high, you don't want to be left behind, makes you buy, and the market going down, because you don't want to loss all your profits, you sell to secure some profits.