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How to fight FOMO in crypto trading

When it comes to crypto trading, FOMO can be your enemy. FOMO, or the "Fear of Missing Out," is a powerful emotion that can significantly impact your trading decisions.

First described by Dr. Dan Herman in an academic paper in 2000, FOMO gained notoriety in the trading world a few years later thanks to Patrick McGinnis' opinion piece in "The Harbus" magazine. As a result, the acronym has become a common term among traders, and for good reason.

At its core, FOMO is driven by anxiety — the fear that you're missing out on a better opportunity. This could be triggered by a dramatic headline, social media post, or knowing another trader that makes a big profit on a digital asset. When FOMO takes over, reasoning and making informed trading decisions can be challenging.

It's essential to understand the impact FOMO can have on your trading decisions. To help, we've put together some steps to overcome and manage it.

Steps to overcome FOMO

Do your research

Another acronym to get acquainted with is DYOR or "Do Your Own Research". As a fundamental step, take the time to thoroughly research a digital asset before investing in it. DYOR will help you avoid making impulsive decisions based on FOMO.

Have a trading plan

Create a clear trading strategy and stick to it: Having a defined trading strategy can be your lifeline once you jump into the sea of crypto. Setting entry and exit points will help you avoid making impulsive decisions based on FOMO.

Diversify your portfolio

Trading a range of digital assets can help reduce your risk exposure and prevent you from feeling like you're missing out on a single opportunity.

Use stop-loss orders

Set stop-loss orders to automatically trigger a sell order if the price of a digital asset drops below a certain level. Selecting a stop-loss will help you limit your losses and avoid making emotional decisions in a panic caused by FOMO.

Avoid checking the market too often

Having your eyes constantly glued to the market or charts can feed into your FOMO and lead to impulsive decisions. Instead, consider setting aside specific times of the day to check market activity.

Be self-aware

Be aware of your thoughts, actions, and emotions when you trade. For example, if you notice feelings of FOMO creeping in, take a step back and re-evaluate your trading strategy and goals.

Take a break

It may be challenging, but if you become too emotionally invested in a particular digital asset or feel overwhelmed by FOMO, take a break from trading. Giving yourself this time and space will help reset your logic and reasoning, gain perspective and help you make better decisions in the long run.

Whether you're a crypto vet or just starting crypto trading, remember to keep your FOMO in check and make rational decisions based on solid research and market analysis.


NOTHING IN THIS ARTICLE IS A SOLICITATION TO BUY OR SELL DIGITAL ASSETS. OKX DOES NOT ENDORSE ANY PARTICULAR DIGITAL ASSET OR STRATEGY. DIGITAL ASSETS HOLDINGS INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY ON ANY GIVEN DAY, AND MAY EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL CURRENCIES IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. OKX DOES NOT PROVIDE LEGAL, TAX, INVESTMENT, OR OTHER ADVICE. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.

Disclaimer
This content is provided for informational purposes only and may cover products that are not available in your region. It is not intended to provide (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold crypto/digital assets, or (iii) financial, accounting, legal, or tax advice. Crypto/digital asset holdings, including stablecoins, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding crypto/digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. Information (including market data and statistical information, if any) appearing in this post is for general information purposes only. While all reasonable care has been taken in preparing this data and graphs, no responsibility or liability is accepted for any errors of fact or omission expressed herein.

© 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less of this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: “This article is © 2025 OKX and is used with permission.” Permitted excerpts must cite to the name of the article and include attribution, for example “Article Name, [author name if applicable], © 2025 OKX.” Some content may be generated or assisted by artificial intelligence (AI) tools. No derivative works or other uses of this article are permitted.

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