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FOMO and FUD

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Fomo and FUD

What you can expect to learn?

  • FOMO and FUD Test
  • What is FUD, FOMO and factors causing them
  • Strategies to tackle FOMO and FUD 

Before we begin the article, let’s do something fun. It will take less than a minute. Give a shot at this quick FUD/FOMO test and see how you score.

Fomo Fud Calculator

There are two arch enemies in life in general and trading in particular, and more so specifically in crypto trading life:  Fear of Missing Out (FOMO) and Fear, Uncertainty, Doubt (FUD).

What is FOMO?

When we think that the train is going to leave the station and try to jump on it at any cost, that is parallel to acting out of Fear of Missing Out (FOMO).  

We forget, temporarily, that there are more trains to catch and that the market is here in the long run.

When you fall for the hype and do not follow the facts, like this guy that Jordan Belfort is seen conning in Wolf of Wall Streets.

What is FUD?

When we let negativity and false information drive us out of the market or keep away from good opportunities, we are facing Fear Uncertainty and Doubt (FUD).

A real life example could be, letting some false information blind us completely from reality and lead us to make irrational decisions.

For instance, this gentleman who is reacting to a VR immersion to a totally false reality.

Difference between FOMO and FUD

Crypto trading, for that matter any trading, is a zero sum game.

What that means is, for you to win, someone has to lose.  For you to sell at a profit, someone has to be willing to buy at a higher price.

Is FOMO and FUD bad?

Not all situations of FOMO or FUD bad when they are backed by a process.

For instance, when Chainlink dropped to $1.8 we jumped on the opportunity to buy a few.  At this point, Chainlink was already 600% from its initial listing price a year back.

Because we had done our research and have established our target entry points, buying into an asset that is already 600% high was not a bad decision.

Similarly, when you get disillusioned through research and new information that the project you thought was going to the moon is actually a piece of scrap, it is ok to FUD out.

As long as we keep our rational hats, FOMO and FUD can help us make timely decisions.

What causes FUD and FOMO?

Following blindly

When you choose to simply follow someone’s advice without validating the facts just because someone said it, then you become a victim of FOMO or FUD, depending on what is fed to you.

For instance, take the News channels.  In this day and age, they are mere propaganda promoters.

Many people either are clutched by fear or act carelessly based on what is fed to them.

If these channels say that the market is heading for a crash, people following these sources will take hasty decisions.

When they report something rosy – market responds by going euphoric, irrespective of facts.

This is exactly what we are witnessing today with COVID crippling the economy while the stock market is rallying to new heights each day.

Greed

FOMODuring the 2017 crypto bull run, some people who made millions of dollars couldn’t exit the market because they thought they could time the market.

So they kept playing and lost their gains and in some cases capital to the crash.

Greed generally makes people make irrational decisions that ultimately lead to their own peril. 

Lack of research

Who wants to read a boring 30 page whitepaper when you could let a YouTube influencer give you his opinions?

This convenience has resulted in relying on influencers without understanding the underlying intentions.

Do you know if the influencer has any conflict of interest?

Are you getting an unbiased view of facts or are you just getting biased opinions?

Lack of research is one of the biggest reasons why people are forced into making irrational decisions.

Sensation for facts

In the world that floods us with millions of bytes of information, the one that grabs your attention wins. 

In this race for attention, we have become victims of ‘clickbait’ headlines.

I have read in some forums that people have executed a wrong trade by just reading a clickbait headline only to realize that the actual news was not as rosy or dire.

In the online world of stimulation, sensation sells.

Unfortunately, we cannot make investment decisions based on sensation.

Investment is mostly a boring activity.  It involves reading a lot of dry sources, following through on due diligence, carrying out research, executing decisions and being patient for the right time.

How to tackle FUD & FOMO?

Curiously, the tools to tackle FUD and FOMO are the same, that means, you tackle one and you tackle the other.

Using FOMO and FUD against one another

When you are faced with FOMO, go out and seek negative information on the project that has you in the FOMO grips.  

Create deliberate FUD for yourself.

If you are suffocated by the clutches of FUD, then remind yourself why you were interested in the project in the first place.  

Has anything changed about the project that got you interested in the first place?  

If yes, then you have to simply take the next logical action.  If nothing changed, you can motivate yourself by seeking FOMO angle.

This strategy will help you remain sane while the market goes nuts.

Breath

I am not going all spiritual on you but trust me when I say this helps.

When you are running after or away from something you take short breaths, this is a good indication that you are going to make some hasty decision.

When you are faced with a FUD or FOMO situation: BREATH. 

Consume the information without reacting.  To stay rational, practice conscious breathing and then put your head down to ‘dig for the facts’ before you take the decision.

Research

There are over 6000 projects in the market.  You cannot learn about every project fully.

However, you can learn about a few projects as fully as you can.  This research will help you gain insights that will help you to make the right decisions.

Fundamentals

Technology has changed but us humans have remained the same blob of biology. 

Human nature, gravity, north pole, south pole, have remained unchanged.  

Similarly, the fundamentals of a good project are the same whether you are looking at  a company in the crypto space or traditional space.

Look for these solid fundamentals. If your project has these fundamentals – then the temporary ups and downs should not bother you. 

This will help you sleep better at night.

Beware of confirmation bias

We usually seek out what we want to validate.

Read that again.

We as creatures of habit want to reduce the world to fit our view.  

This is particularly true about our investments.  It is important to consciously seek out contrarian views that of yours.

This will help you gain greater perspective and make all round decisions.

Follow the money

More often than not, mainstream media will be saying one thing and the big money is doing something else entirely.  

Even if the news of FOMO or FUD is true, it is usually an ‘after-the-fact’. 

No one will actually let you in on the secret before they place their bets.  

For instance, someone will talk about how this startup is going to change the world AFTER that company has already gone public.  

This means, the VCs are ready to dump their stocks onto unassuming noobs while they 1000x their seed investment.  

A classic example of this in the crypto space is when JP Morgan publicly condemned Bitcoin and threatened to fire anyone at the firm who buys bitcoin.

Secretly, JP Morgan was buying boat loads of Bitcoin and shortly they even introduced their own cryptocurrency.

In this short video Teeka Tiwari reveals all the hypocrisy of these big players who manipulate the market into FUD and FOMO depending on what benefits their deep pockets.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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All Roads Lead to $100K Bitcoin: Various Perspectives that Support $100K BTC

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Bitcoin to 100K

Bitcoin to 100K

There are a lot of theories in the crypto space that argue that Bitcoin will reach $100,000 before the next halving.  Some even argue that we could reach that price point before the end of 2021.

Here we have compiled a few perspectives that support a higher price point for Bitcoin.

IF we missed any, please let us know and we will be glad to add it for others to read.

Bitcoin’s ability to reward savers

If you saved $100,000 throughout 2017, today its value would have been $94,000, a total loss of 6% due to inflation. That is without considering the fees and hidden charges that institutes charge.

Even if you invested in the S&P 500 for 12 months at $8333 each month throughout 2017, your portfolio value today would have been $110,000.

If you saved $100,000 in Bitcoin throughout the 2017 (prices ranged from $920 through $14,000 during Jan 2017 through December 2017).  For the purposes of this comparison we are using the last week prices from each month as available on Coinmarketcap historical snapshots.

$100,000 invested in equal amounts throughout 2017 would look something like this.

Bitcoin to 100K

Since 2017, Bitcoin price has crashed and rebounded.  At the lowest point of the crash of $3000 per bitcoin, your portfolio value would have been $144,000.

In today’s average price of $16000 per bitcoin, your $100,000 savings would have been worth $770,000.

Due to its increasing demand and reducing supply, Bitcoin is expected to reach $100,000 in the next 4 years. Some models show that bitcoin will be worth $1 Million by 2030.

Only time will tell us whether bitcoin reaches these prices or not, but point being, no other asset of any class has crazy growth predictions like Bitcoin has.

Stock-to-flow ratio

According to Plan B, Gold had the highest stock-to-flow (SF) ratio of 62.  That is, it will take 62 years to produce the gold that is currently in the market.  In other words, you cannot willy-nilly inflate the supply in a year or two due to how scarce gold is and how difficult it is to find and mine it.

Current SF for Bitcoin is 25, however, by the end of 2020 or 2021, this could jump to 50.  By the next halving in 2024, Bitcoin could surpass the SF of gold.

According to Plan B, “The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. That is quite spectacular. I guess time will tell and we will probably know one or two years after the halving, in 2020 or 2021. A great out of sample test of this hypothesis and model.”

However, following the trajectory of Plan B’s SF analysis, Bitcoin could easily reach $1 Million dollars by 2030, according to some commenters.

Stimulus and unlimited printing of fiat

COVID has exposed another flaw in the fiat system.  It is that governments can print as much money as they wish whenever they wish to do so.

Whenever governments resort to simply print money without having a basis in asset value or growth in GDP, it erodes the value of the fiat in circulation.

This is what happened to Argentina, Venezuela, Zimbabwe and more.  

The US dollar has lost over 99.97% value since 1900.  For instance, whatever you could buy with $1 in 1900 will need $31 today.

COVID has added salt to the wound for fiat.  It exposed the blatant fact that governments can and will print money to their whim without regard to the inflation and impact on savers.

This increased supply in fiat helps stock market and market liquidity which in itself helps people who are invested in the stock market and other vehicles which is generally the wealthier part of the society.

Other factors strengthening the crazy Bitcoin price predictions

  • Institutional FOMO, for instance, Square, PayPal, Grayscale, etc., entering the market
  • Easier onboarding of new retail investors
  • Greater technologies and DApps being built on Bitcoin 
  • Great DeFi services to lend and borrow money
  • Globally accepted single denomination that does not need to be converted in the future (with enough places accepting bitcoin)

What other factors do you think will contribute to Bitcoin’s shooting past the $100,000 barrier?

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

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