The post FOMO might be your portfolio’s worst enemy appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. Fear of missing out, or FOMO, manifests in various ways. For some, it prompts them to purchase Taylor Swift concert tickets for over $32,000 to avoid missing an unforgettable experience or the chance to be part of a cultural event. This sense of urgency can lead people to make impulsive decisions driven by the anxiety of not being included in the excitement and hype surrounding an event. In today’s digital era, where social media amplifies real-time updates and curated highlights, FOMO has become even more pronounced. This fear can lure individuals toward hype-driven trends that may not align with their best interests.  In crypto, the emotional rollercoaster of its volatile market intensifies this effect. Traders might buy into rising assets during a bull run, chasing the wave of success, only to panic and sell at a loss when price plummets, driven by fear of further decline.  The euphoria-to-fear cycle is particularly prominent in the digital asset market, where social media, influencers, and constant news updates can make investors feel like they are missing out on once-in-a-lifetime opportunities if they don’t act fast.  This FOMO-induced behavior creates an artificial sense of urgency, leading people to invest without analyzing and understanding what they are investing in.  Let’s rewind to 2021, when non-fungible tokens gained massive popularity, with some digital artworks selling for millions of dollars. The explosive demand for NFTs was primarily driven by investors’ desire to act on what appeared to be a get-rich-quick scheme. Celebrities and brands even entered the NFT marketplace, adding fire to the hype. However, as expected, the craze eventually died down.  The political climate also significantly magnifies FOMO. When prominent political leaders make…

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Filed under: News - @ November 23, 2024 11:28 am