I want to begin by giving a simple overview of the diffusion of the innovation curve. 

Within the Diffusion of Innovation theory, there are adoption points as such:

1. Innovators: Those who jumped on to Bitcoin in 2008

2. Early Adopters: All of us now, who invest in crypto but are still considered "crazy" by friends

3. Early Majority: Once your friends start to jump on board

4. Late Majority: When your parents start investing in Bitcoin

5. Laggards: When your grandparents substitute gold for Bitcoin

Each point on the innovation curve has adoption actors who help facilitate the innovation within a society and within community groups.

In the cryptocurrency space, we have actors like the subreddit, r/CryptoCurrency, and this very forum. There are also news organizations dedicated to crypto, social media influencers on YouTube, Twitter, etc. And then there are the everyday actors like you and me spreading messages throughout our family circles and community groups.

It's this culmination of adoption actors that create our source for the Fear of Missing Out (FOMO).

What is FOMO?

FOMO is the perceived need to persistently stay connected with one's social network, resulting in frequent (and for some, excessive) use of a social networking site, or, in this case, the purchasing of a specific cryptocurrency [1].

The conceptual framework of FOMO was first introduced in 2010, as social networking sites began to shape the way we all communicate [2]. Before the invention of social media, people were relatively isolated to their individual communities and some online forums. But the exponential rise of social networking forced our minds to re-wire due to the constant stimulus that online platforms provide.

As a result, FOMO is a natural adaptation to our mental processing, which involves two components:

1. An apprehension that others are having a rewarding experience from which you are absent

2. The persistent desire to stay connected with those who are being rewarded

The first point, apprehension, is a cognitive aspect that brings on anxiety, rumination, etc. The second point, persistent desire, is a behavioral component aimed at relieving the anxiety you feel by surrounding yourself with other obsessed individuals.

This echo-chambered effect calms those who join. The group openly accepts those who too have anxiety from the recent reward, and shun those who oppose the stimulus.

Equally so, those who may have missed out on the rewarding experience endure a different type of FOMO, Fear Of Missed Opportunity, and can become angry at those who huddle together to calm their anxiety.

What FOMO does to others.

FOMO has been explored in several countries and languages, with similar responses amongst them all.

The persistence amongst the apprehensive can create an increase in "perceived switching costs." Essentially, what this means is people feel like they are losing out from not participating, and the cost of doing nothing is outweighed by the benefits of jumping in.

Thus the switching costs build-up from the societal pressure surrounding the event, and when that cost becomes too much to bear, people jump on the trend. The fear and anxiety are subsequently, temporarily, suppressed as the group welcomes newcomers. I emphasize temporarily because, depending on the nature of the person, the decision may have gone against their usual judgment.

What can you do about FOMO?

Well, to know for sure, we need to look at Self Determination Theory [3]. This theory suggests that one's intrinsic motivations, meaning you do something because it makes you feel grounded and secure, are outweighed by your extrinsic motivations, the pressure you feel to make money or gain rewards.

Said another way, FOMO occurs when you sacrifice your better judgment in search of external rewards.

So what you can do is come up with a crypto plan.

You can do the following:

1. Come up with an entrance plan. What foundational principles drive who you are? B2B enterprise? Social endeavors? Online engagement? Art? Community? Come up with a short 3-5 point list, and search for projects that meet those intrinsic needs. Then stick to those projects.

2. Decide whether this plan is short-term, months, or long-term, years.

3. Create a list of goals you want to reach with your portfolio. Do you want to retire and take gains? Do you want to cash out in a lump sum? Do you want to pass down this portfolio to your children? These decisions will create the walls to your intrinsic motivations, shielding you from FOMO.

If you follow these three principles, you will resist the urges that come up from the fear and anxiety created when society clusters into FOMO-generating groups. You will also not feel regret when that group increases in size, showering themselves with their riches. You will remain on course and know you're following what makes you comfortable.

These principles will shield you from those feelings that make you act against your better judgment.

I hope this helped you in your investment journey, and I look forward to reading about your FOMO experiences in the comments.