The crypto market has a highly volatile nature which makes cryptocurrency trading a tough work to do. Novice traders are recommended to start with crypto basics before delving into the world of crypto trading. Changelly PRO is a perfect place to get into the cryptocurrency trading process, as the exchange provides native UX/UI, flat withdrawal and trading fees, and even a proper environment to start margin trading.
In its core, trading is stressful. Every time the market fluctuates in a wrong for a trader direction, there is too much adrenaline goes through a trader’s veins. Despite heart-pounding market situations, there are many other factors, like FOMO, that influence on a trader’s strategy. Changelly is going to explain FOMO trading meaning and provide useful tips on how to overcome FOMO while trading crypto.
FOMO is an acronym for Fear-of-Missing-Out. The concept was introduced in the early 2000s when the world stepped firmly into the digital era. Since then, the FOMO acronym has become a part of daily life. The perfect example of FOMO are social networks. You could feel it each time your friends posted pictures from a party that you couldn’t visit for some reason. There was the feeling that you’ve missed all fun in the whole entire world. This is FOMO.
FOMO is a fear to miss a life-changing or just a good opportunity of doing or feeling something.
FOMO Meaning in Trading
FOMO in trading refers to a fear of losing profitable trading or investment opportunity. The crypto industry is a perfect example of how people become rich with random investment. Back in 2010, the value of BTC was around $0,008-$1. How could anyone predict that its price would reach $20,000 seven years later? If you ask the crypto community about the greatest regret, most of them will tell about ‘not-buying-BTC’ at the right time.
The crypto market is in its infancy. It suffers from constant fluctuations, while the value of a cryptocurrency may change dramatically within several hours. Cryptocurrency traders have their own trading strategies that help gain profit. However, sometimes, profits depend on simple luck when a user buys and sells cryptocurrency at the right time.
There are certain symptoms that might signal you about FOMO. For instance, there is a new coin on the market that is rapidaly gaining momentum. Many people have already bought it. You might start to feel anxious while suspecting that everyone around knows something that you don’t. This is FOMO and you can either go for it or resist it. Fear of missing out a lucrative investment option is painful, but once you cool down and asses the risks the pircture might become clearer. What can be done to avoid crypto FOMO? Changelly has collected the most common tips.
How to Avoid FOMO
It is important to understand that FOMO is an emotional thing. Even if there is a critical market situation, a trader must stay calm. The crypto market is not the right place for emotions and worries. There should be nerves of steels and cold math.
Fix the FOMO State
It is important to realize that you experience FOMO. It will be more easier for you to overcome this state, once you fix it in your mind.
Realize There Will be Losses
Obviously, there will be missed opportunities. The sooner you realize that losses are just parts of the game, the faster you’ll become a more advanced trader.
Analyze the Charts
Analyzing the charts is always a good start. Check the chart of the previous day/week/month. Comparing to cloud-built feelings, charts are solid facts about a cryptocurrency trend.
Analyze Your Previous FOMO Attack
You’ve probably experienced FOMO before. Try to remember the last time you’ve been hit by it. What did you do? Did you give into it? If so, what were the results? Your previous experience might save you from today’s fatal mistakes.
Remeber Cases of Failed ‘Profitble Oppotunites’
There are over 3,000 digital assets on the crypto market. Some of them used to be promising cryptos but now cost nothing. During the ‘ICO rush’, both investors and crypto traders might have experienced FOMO. Many people lost thousands of dollars during scam ICOs. If you don’t want to cry out ‘Bitcoinnect’ once more, think rationally before trading a ‘hot asset.’
You Are Not the Only One
Remember, that you are not the only one who may have missed out an opportunity of profit. There will be other investment options based on your calcuclations and intuition that help you to benefit so there is no need to worry about it.
‘What If…’ Never Works
Subjanctive mood is not applicable to the crypto industry. The high level of volatility within the market washes out any predictions. Don’t feel sorry about missed opportunities but use your skills and expertise to find your own wining strategy.
If You Happen to Fall Under Crypto FOMO
If you decide to trade a cryptocurrency they all buzz about, don’t forget the golden rule of any savvy trader: trade the amount you’re not afraid to lose.
There are multiple ways to overcome FOMO in crypto trading. We hope that the tips listed above will be helpful at the right time. Anyway, you can always exchange any of the 160+ crypto assets listed on Changelly using floating or fixed rates. Buy and sell crypto with your credit card (Visa, Mastercard), bank transfer, or Apple Pay on Changelly.
About Changelly and Changelly PRO
Changelly provides an ecosystem of products and services that enables customers to have a one-stop-shop experience when engaging with crypto. Operating since 2015, Changelly acts as an intermediary between crypto exchanges and users, offering access to 160+ cryptocurrencies that can be effortlessly swapped within 10 minutes on desktop and on-the-go via Changelly mobile app.
In 2020, Changelly has branched out to accommodate the needs of traders. Changelly PRO has been built to provide a fully compliant, regulated, and easy to use platform focused around the needs of the customer, effectively enabling retail buying and selling of digital tokens and coins. Piggy-backing the great support system found within Changelly, Changelly PRO will provide the community with high limits, effective pricing, fast execution, and 24/7 live support.
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.