Hello everyone, surely when you first join the market, everyone has heard and been stuck at least once about the terms FOMO and FUD. But it is still unclear what these two terms mean in this crypto market. In this article, I will explain in the simplest way, from the concept, the harmful effects and how to prevent FOMO and FUD.

1 What is FOMO?
FOMO is the acronym for Fear Of Missing Out, which means fear of missing out, expressing the fear of missing out on profits that can be earned if you do not buy a certain "hot" coin as soon as possible, regardless of What is its current price? Usually FOMO comes from famous KOLs and the type of altcoin most susceptible to FOMO is meme coins.
For example: Suppose people join FB groups, surf Tele or Twitter. Suddenly, everyone saw that many people were talking about a certain coin that promised to increase sharply. At this time, checking, the price is increasing continuously and at this time everyone will feel that if they do not buy that coin, they will miss the opportunity. After that, everyone decided to buy it no matter how much the price had increased.

2 What is FUD?
FUD includes the words Fear .Uncertainty ,Doubt is a term referring to the syndrome of fear, uncertainty and doubt. In the fields of politics and finance..FUD is a tactic of spreading fake news that affects perception by creating false information.
In tradecoin, FUD refers to the feeling of fear of traders when bad news about the market appears in the media. Traders suffering from this syndrome quickly sell off coins unnecessarily, leading to a serious decline in market prices, creating conditions for "sharks" to collect coins at cheap prices.

For example, recently there were Fuds regarding the Binance exchange going down, making many people very afraid of the same thing happening like FTX
How are FOMO and FUD used for personal gain?

Every day, we witness many coins being manipulated by sharks, so their prices increase very quickly and strongly, even on just a few candles it has been x2-x3. Every time there is a sudden price increase like this, the community will pay attention very quickly. As soon as the pumping sessions took place, information was quickly spread on social networks such as Tele, FB, If it has any practical use in life, it will create a wave of people rushing to buy it for fear of missing out on the opportunity to get rich. This will help KOLs in the industry and the project that created this token get rich quickly. Not only KOLs, but also influential people like Elon Musk. Elon Musk also shills a lot of dog and cat coins, NFTs like Miladys,..

But each pumping session of course cannot last long, what goes up quickly will come down quickly. When the market is bustling, FOMO quickly spreads. When there is bad news FUD will be released. We can see that in any case, greed and fear are the big factors that govern the market. Organizations and individuals often take advantage of FOMO-FUD for personal gain.
Most people who often suffer from FOMO and FUD are newbies with weak psychology, unstable knowledge, and not much experience. They are afraid of missing out on the train that will help them increase their assets quickly, so they rush to invest money without doing thorough research, and everyone knows the end result. This trick is not necessarily just for traders. They also use it as a tool to compete with competitors in the market.

3 Who will cause FOMO & FUD?

In fact, FOMO and FUD are very powerful tools that are often used by organizations and individuals with great influence in the market for their own profit. Often units that create FOMO or FUDs will use the media to spread it with the aim of creating as much influence as possible.
FOMO is used to push the price of crypto coins up with the purpose of creating liquidity to take profits.
FUD is a tool used to deface or lower the price of a coin with the purpose of accumulating as much stock as possible before activating FOMO to take profits.

Symptoms of FOMO and FUD
Before getting into the main issue, let me give you signs of whether you are suffering from FOMO or FUDs!!. Normally, people who often suffer from FOMO and FUD will be traders with little experience in the market, and will have signs such as:
Eager to buy and sell, often turning the app on and off to check
Don't have a trading plan before entering a trade or if you do, break it
Trading on retail news is not important and does not continuously update the market
Do not apply other analytical methods in combination to increase the probability of entering an order
For example, during the recent FUD hack of 20M Op tokens, many people sold out in panic. However, if we have knowledge, we can realize that this is just a FUD trick to collect goods.

Specifically, there was a fairly detailed analysis of that incident. He pointed out that the information about hacking 20M Op tokens is incorrect, because hackers can only access a few small wallets, not the project's main wallet. Additionally, he also pointed out that the Op project has good security measures in place to prevent attacks. From these analysis, we can see that the FUD hack of 20M Op tokens is a trick to create panic in the market and cause Op prices to drop. If we were a newbie, we might have panicked and sold all of our Op tokens, leading to losses.
How to overcome FOMO and FUD when investing
Identifying real or fake FOMO or FUD is not simple at all, but it is not impossible. Here are some ways:

Have solid knowledge
To avoid FOMO and FUDs, you must have a solid knowledge base to avoid it. However, to know the reasons behind each FOMO and each FUDs, you need to understand the market.

Have a clear plan
Always have a trading plan before entering an order. Must have a stop loss point, entry point, target sell point, capital allocation plan, etc. before trading. There are possible plans and if you have FOMO and are caught off guard, don't hesitate to cut your losses. Cutting losses at least saves you the capital to look for other opportunities.

Capital and risk management
Effective capital allocation and management helps you minimize risks caused by FOMO and FUD. In addition, good capital management helps you maintain a stable profit, then FOMO and FUD cannot influence your decisions anymore.

Understand your investment style
Understanding your investment style, whether short-term, medium-term or long-term, helps determine how decision-making is influenced by FOMO and FUD. Assuming you are short-term (surfing) style, following the FOMO waves will help you gain quick profits. On the contrary, with medium or long-term style, FOMO or FUD are mostly negative.

Don't be afraid of missing the train
The market has many opportunities to make money, if you see that the coin has suffered from FOMO and the price is too high, it is best to stay out.

Be patient and steadfast
You have to be really patient and consistent with your trading plan. Don't be hasty or impatient to enter orders.

Epilogue
FOMO and FUD psychology is an integral part of the cryptocurrency market. They will never disappear, so we need to have the knowledge to view and analyze them objectively to make judgments in the right direction to achieve good profits.
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