FOMO and 3 Ways to Deal with it
FOMO. The fear of missing out. We've all been there. Maybe you panicked when you weren't going to get concert tickets on time. Or you rushed to the buffet line in fear of not getting any steak. Nowadays people even fear missing out on capitalizing on some kind of internet trend before it dies out. Like the Bernie mittens meme that suddenly seems outdated now, even though it was barely a week ago. And of course there's major occurrences of FOMO in the magical decentralized world of cryptocurrency.
It happens again and again. A popular or maybe not so popular cryptocurrency rockets up and suddenly everyone is looking to jump on at the highest point. This is exactly what's happening with #Bitcoin right now. Or #Ethereum for that matter. Friends and family who I have never even heard mention crypto or blockchain are suddenly asking questions about wallets and how to buy these fabled currencies, which some of them dubbed "done for" when we were in the 5K BTC canyon. And then they buy a bunch of coins and wait. Possibly panic selling when it doesn't go as expected.
This is a mistake that all of us have made, even me. And if you haven't, please teach me your secrets, oh wise and omnipotent one. But jokes aside, how do you avoid FOMO? Or better said how do you deal with it and learn to manage it?
There will always be Opportunity
There is no such thing as a once in a life-time opportunity when it comes to trading big in crypto. It's not like seeing a leprechaun and having to chase him over the rainbow to find that pot of gold, because that sort of thing never happens. No. There is an 5x, 10x, 20x around every corner. There's a constant output of new promising projects and start-ups to invest in. You just have to be on the lookout for them. So, don't rush into something, even if it seems like the opportunity will pass. Take your time to research, check out the news and the charts, and then decide if it's still worth it tagging along the rocket to the moon. And if you miss it, don't beat yourself up. The next one is guaranteed to come, as long as this crypto thing has community invested in it. That's not going to change anytime soon.
The Trends don't Lie
Also check out the trends. If you zoom out of any coin, you probably notice a trend of bulls and bears, moons and retractions. Instead of panic buying, trust in the trends and wait till it eventually comes down into a dip. Same goes for panic selling. If you know you're invested long term in a promising project or crypto with a strong fundamental base, why would you lose your mind while "losing" money and sell in the process? That's when the losing becomes official. Once you check the trends, you will lose that feeling of fear, knowing the process will repeat itself.
Dollar Cost Averaging
If you want to avoid FOMO entirely, look into dollar cost averaging. This is pretty much the act of investing a fixed amount of money at regular time intervals no matter what the price. The principle behind this is that you might buy high sometimes and low others, but the average will be sound and stable for the purpose of long term hodling. Not to mention with much less stress. You might have to keep a history of all your buys and prices to measure if you're making a profit, but that's a small price to pay for sanity.
There are many more ways to deal with this psychological phenomenon. So.. how do you deal with FOMO?
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