FOMO

FOMO, short for “fear of missing out,” is the emotional pressure to jump into an asset because it is rising fast and you are afraid of being left behind.

How it works

FOMO tends to build during sharp rallies, when rising prices and excited social-media chatter create a sense of urgency. Acting on it, investors often buy late — near local peaks — without much analysis, simply because everyone else seems to be profiting. It is the emotional opposite of the panic-selling that grips falling markets.

Why it matters

FOMO is one of the most common ways people lose money in crypto, because it leads to buying high on impulse. Recognising the feeling is a first step toward making decisions on a plan rather than on emotion.

Example

Buying a coin only because it has doubled in a week and you fear missing further gains is a classic FOMO trade.