FOMO

FOMO (Fear of Missing Out) is a psychological phenomenon that refers to the fear of missing out on an opportunity, often leading to impulsive investment decisions in the cryptocurrency market. Investors, seeing a rapid price surge, worry they might lose out on potential profits, prompting them to buy assets at peak prices without proper analysis.

FOMO is a major driver of speculative bubbles and sudden price spikes in crypto markets. It often results in investors buying assets at inflated prices, only to experience sharp corrections and losses. Practicing mindful investing, conducting market analysis, and avoiding emotionally driven decisions are key strategies to protect against the negative effects of FOMO.