Crypto Buzzwords: FOMO, JOMO, and FUD
Numbers don’t lie: Crypto is relatively illiquid.
Yes, you can't compare crypto to, say, the NYSE or any of these other big shot bourses moving trillions of dollars every few weeks.
Fuzzy regulations, crypto being a nascent industry, lack of education, and more, may explain this. Still, we have to give it to crypto for doing too much in such a short span.
Out of crypto, we got new slang terms specific to the space that can, at most times, seem puzzling.
A crypto tribe? Maybe.
What is FOMO, JOMO….and this FUD thing?
Well, don't be the odd one out.
FOMO happens when crypto prices are trending higher, and traders don't want to miss the rally.
FOMO is short for Fear-of-Missing-Out.
In Q4 2020, most people were FOMOing, feeling this urgent need to buy certain cryptos just before prices rise.
But what happens when the reverse is happening?
That's when traders panic sell as FUD reign.
In crypto, FUD stands for Fear, Uncertainty, or Doubt.
Take, for instance, when the SEC said they would sue Ripple in late December 2020.
Hours following this notice, the XRP price tanked, falling to $0.16 from over $0.80 in FUD.
However, there is a time when a trader is unfazed by the FOMO or FUD. Instead of panic buying or selling, a trader can stay put, confident that prices wouldn't rise in a FOMO moment or crash in a FUD moment.
That's JOMO, or short for the Joy of Missing Out.