What a lot of people don’t know about getting started in Bitcoin (BTC) is that it brings a lot of emotions—mainly the sadness over a price dip and the out-of-body experience when the price rises. Yes, you can easily buy Bitcoin, but no one really talks about what happens after. At times, these emotions make being in the cryptocurrency space extremely exciting. However, they will also sometimes get the best of us and lead to poor decisions that will lose money.
The main culprits of these poor decisions are FOMO and FUD, as well as their ability to get the best of us.
What Are FOMO And FUD?
FOMO is an acronym for fear of missing out. It’s pretty self-explanatory, but don’t let its simplicity fool you. FOMO is a deadly feeling that could lose you a lot of money. Basically, FOMO is the feeling that sweeps your entire body when you start asking yourself, “why didn’t I buy Bitcoin before” or “ all my friends seem to be getting into crypto; should I join them?” In doing so, you put yourself in the position of making poor decisions just because you feel left out or there’s an opportunity that you missed.
It’s important to know that no matter what you do, there’s no avoiding this feeling. It’s pretty much out of your control and it happens to everyone. The only thing you can do to prepare yourself for it is figuring out how you’re going to react and realize that missing out doesn’t mean the end of the world. Know that there’s always going to be another opportunity for you, such as mall kiosks being the best opportunity for new businesses. So, instead of dwelling on what could have been, focus on looking for another opportunity in your future.
FUD, similar to FOMO, has the same effect. Fear, uncertainty, and doubt refer to the noise you hear from media outlets and the people around you. “Bitcoin is a bubble,” “BTC is a scam,” and “Bitcoin isn’t practical” are some of the phrases you’ll hear from people trying to pass on the FUD.
When someone spreads FUD, it may not always be intentional or they might not even know that they’re doing it. However, the feelings that they bring can disrupt your sound mind from making good decisions.
Staying Safe From FOMO And FUD
You need to know how to stay safe from FUD and FOMO, as well as other cryptocurrency scams. FOMO and FUD provide strong feelings in investors—that’s inevitable. The only thing you can control is the way you react. So to make sure you react to the market in the right way, here are a couple of things you can do.
The first—and most important—thing you can do is to do your research. Before you even think about spending your hard-earned money on some BTC, make sure to do your preliminary research on the space. Look into what type of trading you want to do, the exchange you want to trade on, and the wallet for your crypto. Since each person has their own set of preferences, the answer for each will depend completely on you. This means that no one can do the research for you and it isn’t enough to just mimic someone else’s style. It would be pretty bold of you to just create a Bitcoin wallet and then play the rest by ear.
Doing extensive research will provide you with the knowledge that you need to combat FOMO and FUD. With a basic understanding of how the market moves and the technology behind Bitcoin, you’ll be able to make sharp and well-informed decisions if ever these feelings start to take over.
After doing enough research, you can then proceed to figure out your investment goals. Think of why you’re getting into the space in the first place.
Are you doing it to make a profit? If so, then think of specific markers you want to hit. You can buy BTC at a certain value of your choice and then sell it as soon as it hits your goal. Additionally, there are other trading strategies that you can use when buying bitcoins. Each will calculate goals differently, so be sure to do your homework on the different types of strategies you can use.
On the other hand, there will also be people who are looking to get into the space for BTC’s real-use cases. This includes using it as a store of value, means of making more efficient payments, or a way to send cheaper and faster remittances. If you’re using BTC for any of these purposes, then it doesn’t really matter at which point you enter the market. Since the price is irrelevant in these situations, you can enter at any time.
Bitcoin, The Roller Coaster
It’s easy to see why Bitcoin was often compared to a roller coaster in its earlier days. Not only is the price volatile enough to behave like your favorite theme park ride, but it also carried the emotions of one. However, there are now expert ICO investing tips to maximize cryptocurrency returns.
However, as many roller coaster enthusiasts know, if you’re well prepared and know what you’re getting into, the ride doesn’t have to be that scary. Good luck!