FOMO and FUD are two sides of the same coin. FOMO is short for “Fear Of Missing Out,” while FUD means “Fear, Uncertainty, and Doubt.” The difference is where you stand. FOMO is from the outside, while FUD is from within. You experience FOMO when an altcoin goes up in value and you are not invested, while FUD happens when you are holding an altcoin and you are not sure where it is headed. In other words, both reflect the volatility of any altcoin, and neither is a good thing for an investor to have.
Any investment has a degree of volatility. Whether you invest entirely in T-bills or play the penny stocks, interest rates rise and fall, there are bear and bull markets, and so on. The first lesson any good investor learns is that panic is the worst emotion you can feel, and the second is that there are ample opportunities to panic when you invest. So you need to be aware of what FOMO and FUD are, and do your best to keep them under control.
Instead of thinking you are missing the boat when an altcoin rises or worrying you are about to lose your shirt if one drops, it is important to look at the history of the altcoin and discern why, precisely, there is a run on it. Volatility is inherent to the market, in part because regulatory and legal rules are still fluid. If you feel FOMO and FUD, do not open up your wallet to sell or buy. Take a breath, do some research, and think first. If you do that, FOMO and FUD will not be a problem. Ready to learn more about altcoin investing? Subscribe to the Bitcoin Market Journal newsletter today!