FOMO

Taxonomy

FOMO stands for fear of missing out. It is a common psychological occurrence which nearly everyone experiences. As it relates to cryptoassets, many people experience FOMO in relation to the price of various cryptoassets, particularly when the price of said assets is rapidly increasing. The thought is “wow, this thing doubled in value over night last night, I better buy some before it does it again”. People are afraid of missing out on potential financial gains. While this thought is common, it is not wise to make investment decisions based on FOMO. Emotional investing is generally not considered best practice and investing based on FOMO is a clear example of emotional investing.