Investments require the ability to control emotions and avoid misinformation. Investors must be careful and alert about FOMO and FUD. Please read this article to learn what FUD and FOMO are.
FUD in the cryptocurrency market is the spread of hoaxes or doubtful information to scare people about the movement of the crypto market. This is to cause the price to drop dramatically. How is that possible, you ask?
What is FUD?
FUD is the term most commonly used in crypto trading. FUD is an abbreviation for Fear, Uncertainty, or Doubt. He can significantly impact crypto-asset investors when it comes to trading, buying, and storing coins. This feeling is often subconsciously created by a third party to influence your choice.
Sometimes FUD’s fear stems from something absurd and is not based on reality. One example is a famous influencer who claims that Bitcoin will explode in the afternoon. His unfounded statements ultimately made his followers afraid, and they took careless actions. The loss was due to the lack of adequate knowledge.
One example is when you intentionally spread FUD about coins you wish to invest in an attempt to suppress their price. While you believe in this particular stablecoin, you also want to ensure it is at the lowest possible cost. You can create a fake email to make negative comments about the coin to reduce its price. FUD is used to make the coin appear scarier. If the price falls, you can invest at a lower interest rate.
This currency is now cheaper than you could buy it, so you want its price to go up. FUD can be used to write poorly about other currencies. You can use these messages to demonstrate how bad other currencies are and how superior your currency is to that of the competitor.
Because of this, people will seek out your currency to avoid uncertainty, fear, and doubt. The result? Because you created fear and thus influenced people’s decisions, your currency has increased in price. FUD spreads faster and has a greater influence on traders’ decision-making.
This is why influencers often carry out large FUD campaigns. Only you can make people fearful and therefore influence their decision.
FUD is a Serious Threat!
FUD (and FOMO) can be summarized as: Don’t sell your cryptocurrency because you fear. It is a natural emotion that you want to work with, making it more difficult than it seems. There are many options to help you decide whether to sell or buy coins.
You must understand cryptocurrency before investing. Be aware that not all information about this coin is accurate.
It would help if you also considered the credibility of the source. Is he a trusted source for investment tips and recommendations? Don’t let any negative messages you receive from a website that you don’t recognize be taken as gospel.