Beware the Bitcoin FOMO (Fear of Missing Out on Bitcoin)

It’s normal to feel stressed out that you didn’t buy Bitcoin yet (or sold too early)…But, don’t let the Fear of Missing Out on Bitcoin cloud your judgement.

TIP: FOMO = Fear of Missing Out.

If you didn’t buy Bitcoin on the dip at $5.5k because it was too expensive, and you didn’t buy at $9.5k because it was too expensive, does it really make sense to buy at $14k after the run up we’ve seen in the past two weeks?!

Or, if you have been selling up to this point, does it really make sense to now reinvest your whole stack of fiats here and now?!

Maybe. That answer to those questions is maybe. However, you shouldn’t make choices like that based on emotion.

In other words, you might want to buy Bitcoin at any price and put the idea that a given price is too expensive or you sold too soon aside, but you should not make those choices emotionally based on a Fear of Missing Out (FOMO).

Instead, come up with a strategy for averaging into Bitcoin (for example: invest 2% of the 4% of your investable funds you set aside for Bitcoin every week at the best price you can find, or something like that). This will allow you to get a better price if the price goes down, and will allow you to buy into the gains if the price keeps going up.

Every time someone buys at the top, of any asset, it is generally in part due to this feeling that they better get on the train before it speeds off without them. When you make rash choices based on fear, it’s a gamble. When you gamble, especially with a big bet, and then you immediately fall on your face, it feels awful!

If however you start averaging in right at the top, then you become that lucky person who can continue averaging into the dip, and ideally into the recovery. When you do a strategy like this, it makes it so you are OK regardless of where the price goes.

Point being, Bitcoin can be a great investment, but there is a real chance that we’ll see a correction soon after this epic run. Is that correction 10%, 20%, 80%? Who knows. Does it just keep going without a correction. For sure it might.

Since you don’t know, don’t go putting it all on red. Buy in at $14k with a smile on your face, but be ready for what comes next. If you take an average position over time, and you don’t average in with your life savings, you can feel the joy of rising Bitcoin without feeling the sting of regret based on rash decisions made fueled by the fear of missing out.

Author: Thomas DeMichele

Thomas DeMichele has been working in the cryptocurrency information space since 2015 when was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...

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