From the aspects of psychology, fear is one of the most essential and crucial human emotions. It enables an individual to be cautious of his actions while doing any task. But, at the same time, too much fear leads to anxiety, ultimately leading to failure. Too much cautiousness and anxiety force that individual to deviate from his plans.
The same happens with newly started crypto investors. Here the investors often found themselves in FOMO; fear to lose their invested money and profit. So, if you are a beginner at crypto trading and have found yourself engulfed in FOMO (Fear of missing out), whether the investment you have made will bear fruit or not, then don’t worry. Fear will always be there, and it depends on you how you overcome it and push yourself forward. And to help you with this exact problem, this article will emphasize the various causes of this fear while providing you with the solutions that will help you effectively in the long run. So, if you are interested in learning everything related to crypto fear keep reading this article to the end.
What exactly is FOMO?
Crypto FOMO is a common problem that occurs highly among beginners in the crypto world. It can be defined by the fear of losing the profit that individual investors had anticipated while making a particular investment.
It mainly occurs when a particular person makes an irrational decision while investing, for example, buying Crypto based on information whose source is not reliable and then finding them in deficit. Aside from the loss of capital, it also can make you vulnerable mentally, and taking any decision would be difficult.
What are The Causes of Crypto Fear?
There can be multiple causes behind someone’s fears in life. Likewise, there are various reasons why an investor might get frightened in the crypto world. Learning the causes of fear can help extensively to address these fears. Learning them is also essential as it will help you find the solution for your fear associated with Crypto.
- Following Unreliable New Trends
One of the most common causes of fear among new traders is caused by following new trends. There is plenty of rumors speculated every minute on the internet. The new investors first come in contact with these online rumors. That is why most new investors invest without taking the headache of examining the information source. Consequently, most of the tiles lose their invested money. - Too Much Information
While information is a critical element of the crypto world, it can also be a cause of Fear. As an individual gets access to too much information from multiple sources, which are contradictory to one another, it can lead to confusion, ultimately leading to the birth of Fear in the traders’ minds. And getting confused, they end up making irrational decisions. - Unregulated Market
The crypto market is untested and unregulated, unlike stocks and foreign exchange markets. Since Crypto is a volatile currency that is not regulated by any central authority, the market of Crypto is also sort of chaotic. In addition to this, there is no barrier to entering the market. Consecutively all these factors impact building fear among the investors.
Solutions to these Problems
Here’s a list of the things that you must do to avoid the above-mentioned problems.
- Educate Yourself with Proper Knowledge
The first and foremost thing to avoid Fear is to educate yourself with accurate information. You can choose a reliable app like cryptoengine, where you get access to information that will come in handy in investing and selling Crypto. - Thorough Research is Important
When you start doing thorough research, most of your Fear will disappear. In addition to this, when you will start researching and gathering knowledge about various things it will help you determine whether certain information is fake or not. In addition to this, it will also help you make the smart move. - Keeping a Consistent Tab on the Market
Aside from learning and researching, it would help if you kept a consistent watch over the market. It will enable you to get quick access to information and give you enough time to research it to determine its reliability.
Conclusion
Having fear is quite common for crypto investors. Being in an unpredictable market does affect a person’s potential, but if taken this fear to advantage of, it enables a person to become highly cautious of his action. So, make sure you handle your fear while taking it for advantage.