What Is FOMO (Fear of Missing Out)?

FOMO is usually triggered by sharp price increases, screenshots of profits shared on social media, posts by celebrities, or statements along the lines of “those who don't get on the train get left behind.” The investor buys when the price has already risen substantially; the chance of a loss in a subsequent correction then increases. This behavior is especially noticeable in memecoins and newly listed tokens.

In the crypto market, FOMO is often mentioned together with FUD (fear, uncertainty, and doubt): one expresses excessive optimism, the other excessive pessimism. Those who organize pump and dump schemes also take advantage of FOMO to artificially raise the price and sell to late buyers.

Commonly used approaches to limit the effect of FOMO include a predetermined plan, dollar-cost averaging (DCA), stop-loss orders, and researching the project independently (DYOR). Indicators such as the Fear and Greed Index are also used to monitor the overall sentiment in the market.