FUD & FOMO
FUD = fear and panic, FOMO = fear of missing out — psychological traps.
FUD and FOMO are two psychological states that dominate the crypto market and directly influence prices.
FUD (Fear, Uncertainty, Doubt):
•Deliberate spreading of negative news to cause panic
•"China bans crypto" (happened 15+ times)
•"Bitcoin goes to $0"
•"SEC sues Binance" — prices fall short-term
•Investors sell in fear, usually at the bottom
FOMO (Fear Of Missing Out):
•Fear of missing gains while others profit
•Drives buying at peaks — usually bad timing
•Social media and "100x coin" stories amplify FOMO
Advice: DYOR (Do Your Own Research) — make decisions based on analysis, not emotions. Volatility is amplified by FUD, and hype by FOMO.