I've just realized that many new entrants into crypto are facing a common psychological issue, which is FOMO — or in other words, the fear of missing out. In fact, what is FOMO in crypto that causes such a significant impact on many people's investment decisions? I will share some of my observations on this issue.

The most obvious thing I see is that FOMO appears most often during periods of strong market volatility, especially during uptrends or downtrends. At those times, FOMO-driven investors often fall into uncontrollable emotional states; they want to trade immediately, lack patience to think carefully, and are always eager to make quick profits. Notably, they usually do not have enough knowledge to make their own decisions but just follow the crowd’s movements, acting in groups without thorough consideration.

I see a few main reasons leading to this situation. First is the lack of market knowledge. When the market is growing, new investors will see profits easily, leading them to FOMO in without fully understanding how the market operates. Second is receiving news from unofficial sources, especially low-quality social media groups, where false information or scam community content is rampant. Third is the herd mentality — when they see others buying, they rush to buy; when they see others selling, they hurriedly sell without truly understanding where the market is heading.

The way to escape FOMO is not too complicated. First, you need to update your knowledge about the crypto market before starting to trade. Next, select information from official sources, such as founders or reputable figures in the industry, avoiding news from Facebook or Zalo, because you won’t be able to distinguish which news is real or fake. Most importantly, have a specific strategy before entering a trade, clearly define StopLoss, TakeProfit, entry points, and capital allocation plans. You should also control your emotions, practice patience, and stay consistent with your initial decisions. A small tip is to limit checking token prices too frequently, because the more you monitor, the more you are influenced by minor fluctuations, which can lead to FOMO.

Finally, I want to remind you that you can listen to others’ opinions to broaden your perspective, but absolutely do not let others decide for you. What is good for the majority may not necessarily be good for you. Be truly alert, especially in the crypto market, to protect yourself and your capital.