FOMO in the context of Crypto is short for “Fear Of Missing Out”. FOMO is the feeling of anxiety or the idea that other people are sharing a positive or unique experience. While on the other hand, you are missing out.
As crypto trading is still very much driven by emotions rather than valuation, FOMO is a huge factor to consider when swing trading in crypto.
Crypto investors may feel this when they see a bull rally in a coin or token. However, they have yet to buy it. The FOMO feeling is particularly prevalent when a cryptocurrency rises in value significantly over a relatively short period of time. This sentiment will likely trigger a surge in its price.
History shows it is not possible to insulate yourself from the consequences of others holding money that is harder than yours.