HODL, FOMO and FUD : A Deeper Look at the Meanings
HODL : Hold on For Dear Life
FOMO: Fear of Missing Out
FUD: Fear, Uncertainty and Doubt
In the world of Crypto investing some great acronyms are used to describe common behaviors. People are flocking to be part of Cryptocurrency investing for various reasons, but as the ecosystem evolves and big money is moved around through various systems there is an emotional response that occurs when values fluctuate.
HODL is used as a term meaning "Hold on and wait it out! Don't sell, there is always sunshine after the storm!" When times are tough, when value is plummeting, and you want to sell and get out of the game-- those low prices are actually the time to buy, accumulate and just wait. People will see that they have lost money over night and feel like they are fools, you gotta tell them to HODL, because things will get better... unless you have fallen for a scam or trash coin... but when it comes to the foundational coins and platforms, growth and loss can be erratic in these early adoption phases. IT'S NORMAL. When the value is low, that is when you BUY or you HODL, giving up causes regret down the road. For long term investors my advice is to look away during the downturns if it hurts. Remember, only invest what you can afford and do your research.
FOMO is universal. As tribal people, humans struggle with the fear of missing out all the time. In order to be a savvy investor you should have a plan. Study a crypto product and put down an investment and if something you never heard of before is taking off in value = IGNORE IT!!!! It's a trap that will take you away from your carefully thought out plan. When something is flying, it is already too late, you have missed your flight. The great news is: THERE WILL ALWAYS BE ANOTHER CHANCE. For the next 5 years new products are coming out, ideas are plentiful, and wealth is plentiful. It is the hardest when someone you know recommended something and you dismissed it only to see it taking off a week later and suddenly you want in. That is not smart. When new coins take off to new levels, they will always come down. The runs and dips are going to continue as this new sphere of value is developed. A correction is eminent as value is tested against speculation. The smart day traders will profit off of FOMO from newbie investors chasing dreams.
Fear, uncertainty and doubt, these are the behaviors that divide and destroy. Just like FOMO, FUD can be used for pump and dump schemes. The cryptocurrency world is young, and like a child and is easily influenced by fictional stories. There is fake news and a future of uncertainty. Great projects can get abandoned, and opportunities are missed because of these emotions. The truth is, in the open source world, we individually have power to work together to make something amazing. All the "scary feelings" can be avoided simply through informing yourself and teaching others. If something seems vulnerable question in and fix it. Don't just disappear, argue or speculate. The powers that be, that don't want cryptocurrencies to thrive will use FUD to divide people who should be working together.
There are hackers trying to get your money, scam tokens and products, schemes, various forms of institutional level manipulation, that is all true. Because of this you educate yourself, protect your assets and live your life off line in a balanced and healthy manner, then you no longer consume to FUD.
The Cryptocurrency Ecosystem is just another place to hold value, it's not the only one, but it is very fun to be a part of as it grows and transforms. USING OUR DEEPER UNDERSTANDING, REMEMBER THIS:
