Dark side of cryptocurrency: as fear, uncertainty and doubt can destroy markets
The cryptocurrency has been lightning in recent years for controversy and criticism. Although some investors behaved for cryptocurrency, others have lost everything due to market volatility. The joint topic between losses suffered fear, uncertainty and doubt (FUD) on markets.
Psychology for FUD
Fear, uncertainty and doubt are the natural human emotions that can be particularly common during financial uncertainty. However, if you are applying to invest in cryptocurrency, you can have catastrophic consequences. Here's the reason:
* Fear : When investors hear from a new cryptocurrency or new companies, their fear may start selling. This is because unknown and unknown fear can lead to something that makes it difficult for people to make rational decisions.
Uncertainty
: Cryptocurrency markets are known volatile and prices fluctuate in a short period of time. Investors can cause uncertainty to question the long -term vitality of any investment, which gives or sells them investment.
* Higher : Prohibited due to technology, application or cryptocurrency market potential can be particularly harmful. If investors express doubts, it can create a self -fulfilling prophecy in which they are less than risk and want to invest less.
the consequences of fudo
FUD can have serious consequences for the market including:
- This is called a "bear" market.
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Examples of cryptocurrency fud
There are some examples of how the FUD had cryptocurrency markets:
- 2017 A Kroll Limited report showed that 75% of cryptocurrency investors thought they had lost money for cryptocurrency investments.
- 2020 The price of Bitcoin has fallen from $ 40,000 to $ 6,000 in a few weeks due to FUD and market stability.
- Covid 19 Pandemic increased cryptocurrency volatility as prices have significantly fluctuated in response to news and events.
Mastive FUD 
Consequences **
While the FUD can break out the markets, there are steps that investors can make to alleviate its effects:
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Set clear goals and risk tolerance : Define what you want to achieve using your investment and set a clear risk level.
Diploma
The cryptocurrency was a wild trip, but FUD contributes greatly to its volatility and unpredictability. Understanding FUD psychology and steps to reduce their effects, investors can reduce losses and increase their success opportunities in the cryptocurrency market.