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Avoid FOMO At All Costs
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Avoid FOMO At All Costs

Don't Play Yourself

Daton Pope
Nov 23, 2021
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Avoid FOMO At All Costs
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Introduction

FOMO is a topic that is near and dear to me, as I have suffered the consequences of the 4-letter word many times. In cryptocurrency (and every other industry), FOMO is one of the most lethal words there is. FOMO is the acronym for Fear Of Missing Out. It happens when a project is overhyped or overbought, and a retail investor gets anxiety from fear of missing out on massive gains. A lot of times, this forces the investor to make a very irresponsible financial decision and invest out of emotion rather than logic. 

One of the best ways. The best way to end the bull cycle completely Rekt, is to chase every pump like you’re playing a game of musical chairs. The scenario usually plays out the same way every single time, without fail:

  • Investor hears about a coin/token that is supposed to set the industry on fire.

  • Investor becomes extremely excited about the snake oil they are being sold.

  • Investor rushes to whatever exchange the coin/token is being sold on, and injects as much fiat as they can muster into the project (even though the coin has risen 300% in the last 24 hours).

  • Investor watches the candlesticks on the chart rise for another 5 minutes.

  • The coin immediately dumps and loses 95% of its value.....and the investor instantly becomes depressed and feels like they've just fallen for a massive scam.

Many of you all reading this have been victims of that exact scenario. Don't feel bad because it has happened to me as well. Take it as an expensive lesson. It is particularly tough not to succumb to FOMO. There's always that thought in the back of your mind that says, "what if this really is the time that I miss out?" If you find yourself suffering from this thought....you're in luck. These are a few best practices for resisting FOMO.

Twitter avatar for @al_dezo
Aldezo @al_dezo
@NathanHeadPhoto People getting wrecked by twitter Fomo. Literally no one disclosing the danger of going into those projects after they mooned, it has ponzi dynamics (not negatively meant, just by design nature)
6:39 PM ∙ Nov 20, 2021
19Likes1Retweet

Resist The Urge!

  • The best thing you can do when you feel the need to FOMO into a project, is simply walk away from the computer. You have to let your emotions and adrenaline rush subside in order to make a coherent, educated decision. 

  • A lot of times when you back away from the project that is being pumped, you'll find a way better entry point. At the LEAST, you should wait until after the first dip is over to start looking for an entry point into a project that you are really interested in.

  • Also, for the love of everything good, DO NOT jump into any tokens/coins immediately after they are released.

Twitter avatar for @GreenSpica
GreenSpica 🌾 @GreenSpica
@crypto_birb I know, you such as many of us wants the moon, but FOMO is a danger friend, keep cautelous, it’s time to be moderated, dump will be hard, be careful Be careful when big moneys tells you it’s time to buy...
7:28 PM ∙ Nov 11, 2020

"When Everyone is Greedy, Be Fearful...."

  • I know I know. This is so cliché. I agree, and I also get tired of this quote as well. However, it’s so true. I’m sure all of my Warren Buffet fans won’t have an issue with this though. 

  • Also, seeing as how one of the most successful and disciplined investors of the modern era agrees that FOMO can be a huge detriment, I’m inclined to agree. Warren may not know everything (this is particularly true when it comes to his views on crypto), but he's right about FOMO. So, I would implore you to take heed to the advice.

  • While you're being fearful, take that as an opportunity to go do some research on the project to see if it's really worth all of the hype. 

  • If you need a refresher on how to do your own research, check out my post that I wrote on DYOR. Can you argue that this point is the same as Resist The Urge? Maybe, but it's so important to take your time before acting, that it needs to be stressed twice.

Stick To Your Investment Thesis

  • One thing that is not stressed enough, is for you to stick to your investment thesis. This will help you take more of a strategic and structured approach to investing.....and prevent you from chasing every shiny, new project that is released. 

  • Look, I get it, we all want a piece of all of the hottest action. However, that form of thinking is exactly what leads you to spreading yourself too thin, and taking too many chances. With that being said, there are viable reasons to change your initial strategy (ie. government regulation, new technology, industry headed in a different direction).

  • It is impossible to invest in everything. Every sector will have its darlings that will make massive gains, and it's easier to spot these darlings when you have a clear thesis.

  • Pick a sector, and become very familiar with the projects in that area. If you love art and video games, then NFTs and crypto gaming will appeal to your taste. If you believe in financial solutions, DeFi is the sector for you. It's fine to dibble and dabble into different areas, but your preferred wheelhouse should always be your main focus. 

DCA Is Your Friend

  • If you've done all of the above, and deem the project worthy of investment, you have to strategically make your entry. That is where DCA comes into play. For those that are unfamiliar, DCA stands for Dollar Cost Averaging. This strategy occurs when you split your investment total into equal amounts, and invest it at different intervals. 

  • For example, if you wanted to invest $1000 into a coin, you could split that $1000 into 5 payments of $200/week.

Twitter avatar for @thelevelupexp
Cris Reed @thelevelupexp
If you think a “model” can predict monthly #bitcoin price movements and are trying to time it it’s not going to end well. DCA is the way.
9:33 PM ∙ Nov 22, 2021
  • This prevents you from spending all of your fiat on one entry and possibly missing a better position. Plus, no one can ever time the absolute top or bottom prices of a token/coin. Because of that, you should always DCA your way into a position. 

Twitter avatar for @Vadszzz
vads @Vadszzz
DCA in on the way down DCA out on the way up This is the way
10:03 AM ∙ Nov 16, 2021

Remember, there will always be other opportunities

  • The entire crypto industry is still in its infancy. Things still move according to whatever narrative is current at the time.

  • That means that there are always opportunities that present themselves.That is why it is important to actively participate in the market. 

  • That means staying updated with industry news, engaging with different communities, providing value where you can, and going full time into crypto (if possible)....  

Twitter avatar for @MAK__trading
MAK Trading @MAK__trading
Resist FOMO at all cost, there will be many trades in future!
6:40 PM ∙ Nov 18, 2021

Conclusion

  • Crypto is not a race, it’s a marathon. No good will ever come from impulsively jumping into every hyped up project. Taking calculated risks is the best (and in my opinion, the only) way to play this industry.

  • People rarely lose playing the long game (if ever). We have so many more things to come in the near and distant future. So, there is no reason for you to FOMO into anything. Take your time, pay attention, do your research, and invest wisely.

Twitter avatar for @eddyiskongz
EddyisKongz @eddyiskongz
GM everyone! Starting my day early to degen. NFT world moves fast 🔥 Hopefully with ETH dip we see even more sales. Let's see what happens. Use NFT market lessons (stay diversified, don't FOMO) to not worry too much. Many great things coming. Life is good ❤️
1:33 PM ∙ Nov 16, 2021
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1 Comment
ybRUBIN
Nov 23, 2021

Much gratitude! FOMO beware, I'm aware of you!

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