The fear of missing out
Bitcoin is often referred to as digital gold, for the many properties it shares with the precious metal.
And just like with physical gold, Bitcoin (and other cryptocurrencies) are often accompanied by many fortune-seekers, looking to make money quickly.
FOMO, or the Fear of Missing Out is one of the biggest reasons why people invest in a new coin or digital asset. After all, if so many people are buying a coin, they can’t ALL be wrong, can they?
They really, really can.
Investing is never an emotional act – if it is, you’re doing it wrong.
Be aware of FOMO, and don’t let yourself be swayed by hype
Every day brings an exciting new coin to invest in, but remember – for every cryptocurrency that ends up being traded and accepted by the mainstream world, there are many, many more that die out quickly.
That being said, we can’t blame anyone for feeling like they missed out on being a Bitcoin millionaire. Knowing that you may have missed out an opportunity to suddenly be worth seven figures is annoying, to say the least.
You’re not alone!
There are entire sites dedicated to sharing stories of people who regret not investing, or worse, regret losing away hard drives with Bitcoins in them.
FOMO is painful, but it’s also human nature. And it’s our human nature that has people investing in ICO scams, panic-selling the moment a crypto dips, or insisting on getting insider deals on tokens that never go anywhere.
With this in mind, here are our tips
to help you deal with FOMO and keep investing safe and smart!
Take a break
Have you found yourself spending too much time monitoring your crypto in the hope they trend upwards?
Stepping away for a while is the simplest and best way to overcome FOMO. Slowing down helps overcome the anxiety pushing you to act quickly – and there’s plenty of great ways to spend this new free time.
Missing out is part of the game! Make peace with it.
There’s no shame in missing out on an opportunity. In fact, it’s part and parcel of being a trader, especially one who’s new to crypto. Also remember – people love to talk about their successes, and stay quiet about their losses.
Trust in the numbers
Many traders tend to listen to their instinct when it comes to investing. If you have a good feeling about some coin, resist the urge to buy it immediately.
Remember, FOMO is part of our instinct too. Spend a little time looking over the documents and performance metrics for the token before you put the money down.
Try dollar-cost averaging
Try spreading your investment out, with a smaller fixed amount over a period of weeks or months. By spreading your investment, your costs and risk will also be spread while also building your portfolio.
While investing like this may not get you a big score you can brag about, it will also protect you from overpaying as costs average out over time.