Fear of missing out in crypto is definitely a ‘thing’.
I cannot explain how many times I have just watched a particular coin/token, just go up and up and up.
It’s almost like I’m in a trance.
It will start with me having a feeling that I should buy, but for some reason I just become fixated with looking at the price fluctuate.
However, instead of the price remaining the same or going down, it just goes up.
When I feel as though it has gone up too much, I may then get a position.
This maybe double or triple the original price I initially saw it at, but I got scared and so I ‘FOMOED’ in. Big mistake.
Nearly every time I have been a victim of FOMO I always regret it. The price of said coin/token usually goes down, leaving me left holding the bag of coins which are now worth less than what I had purchased them at.
Although FOMO is categorised as a social anxiety by many publications, the main premise of it is the fear that others are having fun, achieving and living their best lives, whilst you are not.
You feel less-than and left out, which can then take a toll on your self esteem.
FOMO in crypto usually comes in the form of feeling as though you are going to miss out on the next ‘Bitcoin!’
You then start thinking to yourself that if you do not get that coin/token at a certain price then you will be left behind, living your mundane life, whilst others will be sipping ‘Mai Tai’s’ on a beach somewhere.
As explained before, the problem with FOMO in crypto is that you may find yourself buying at the ‘top’ (the highest price that the coin/token may have ever been).
Again in crypto as in markets in general, it is very difficult to time it.
How can one possibly know what the highest price may be at a certain time and when it will be at it’s lowest — you just can’t.
Crypto is extremely speculative especially Defi (decentralised finance) and so you are taking a risk by purchasing first and foremost, let alone trying to time the market.
Don’t despair you are definitely not alone, the fear of missing out gets even the most seasoned vets at times (so I’ve heard). The trick is to try to limit the amount it happens.
So next time you think that you have found the next ‘Big Thing’ and you feel like you are being swept up by the FOMO reaper, take a deep breath and think before you act.
Remember, I’m a novice, and this is definitely not financial advice!