Steemit Crypto Academy Contest / S11W01 - The Cycle of Market Emotions

Assalam O Alaikum

Hello Steemians! A warm welcome to my post. I hope that you will be doing well. I'm also fine and enjoying my day. Today I'm going to participate in this Steemit Engagement Challenge Season 11 week 1 in the Steemit Crypto Academy. The topic this challenge is "The Cycle of Market Emotions". So let's start without any more delay of time.

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Briefly Define the crypto Related slogans.

Well! According to me if you are regularly investing in cryptocurrency and if you want to invest in cryptocurrency in near future then it is very important for you that you have brief knowledge about these slogans. So let's start and discuss about these crypto Related slogans.

• 1. PUMP And DUMP: The slogan pump and dump shows the sudden fluctuations in the crypto market. In pump and dump the price of crypto coins increase suddenly and it provoke the innocent people to buy more crypto assets and then after a while the prices of that coins or crypto assets goes down and in results the investors go in loss. Actually it is considered as a scheme of fraud and goes in false sense.

• 2. Going to the Moon: When the prices in Crypto Market increase rapidly and significantly the slogan going to the moon is used. This slogan also shows that the price of a specific crypto token will increase UpTo a high level and in can surpass the previous records and the predictions of investors. This slogan is also a sign of getting huge profits at that time when any of crypto coin is witnessing sky rocketing and its prices are increasing UpTo a high level.

• 3. HODL: Actually that phrase is created by the misspelling of Hold word. The HODL stands for Holding On for Dear Life. That phrase shows the holding assets of a investor. That phrase used to express the people that keep holding your crypto assets even the market witnessing any rapid fluctuations rather the prices are increasing or decreasing.

• 4.REKT: The REKT is also a important slogan of crypto market. When the things happens against the expectations of a investor i.e when an investor lost all his crypto assets due to the fluctuations in market the slogan REKT is used. It also shows the big losses of crypto investors in the crypto market.

• 5.BAGHOLDER: The bagholder is considered as a investor who invested in cryptocurrency for a long time and didn't get any significant profit from his investment and then left the market witnessing loss in his investment. The bagholder also witnessed the less worth of his investment as compared to the buying worth of his assets because he used to wait for further increase in prices as the times of fluctuations in the market.

• 6. CRYPTOSIS: Actually the CRYPTOSIS is not a term which I related to any crypto community. This is physiological term and it describes the interest of people towards the crypto market. When a person keeping an eye regularly on the crypto market and well aware of about the crypto market. We can say that the man is doing CRYPTOSIS and has a fever of it.

• 7.ICO: That Phrase stands for Initial Coin Offering. In this the people sale their own Crypto coins to the investors. That thing is happens by creating a new Blockchain based network and its own native token. They sell their tokens through different strategies such as fund raising , different campaigns and by marketing.

Let's Talk about FOMO

In the crypto market the phrase FOMO stands for the Fear Of Missing Out. Basically that phrase is related to humans phycological thoughts. When we saw anyone making a quick progress and standing at a high level and on the other hand we are facing some problems and due to several reasons our rate of progress is very low so at this we started feeling down and start getting afraid of it.

Same like that the crypto market is highly volatile and fluctuating due to this when we see anyone in the market who is investing and getting high profit, on this we started thinking about that we are just missing any chance to make the same progress and missing huge profits by seeing others and their investments.

The investors may also witness FOMO when they see any sudden raise in the prices of specific crypto currency and the currency in which they have invested is not giving any certain gains to them. And that thing may suffer the investors in a uncertain anxiety and even fear.

Where in the cycle does it occur? How can we deal with crypto FOMO?

If you are a regular investor of crypto market then the FOMO can occur at several stages. Mostly it occur at that time when the prices of crypto currencies fluctuate and starts witnessing sky rocketing it means that when the prices of crypto currencies increase there are the chances of ocurance of FOMO. This is because when the prices of crypto currencies increase suddenly and the people which are unable to earn profits then they started suffering in FOMO.

The spreading of news and new announcements of any new project which is consist of crypto currencies investments trigger FOMO and in such cases the FOMO raise between the people. But dealing with crypto FOMO is very essential. So let's discuss about how we can deal with fomo.

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How Can we deal with Crypto FOMO?

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• First of all before investing in cryptocurrency doing your homework is very important and compulsory. It means that get brief knowledge from valid sources about that cryptocurrency in which you are interested to invest.

• Learn about the fundamentals and key points about the crypto market trends and make a solid plan about your investment before investing in cryptocurrency.

• Never invest all your assets in only one currency. To avoid losses and FOMO invest your money in more than one crypto currencies at the same time. It will save your assets from further loss.

• Use your mind wisely and never do such things which they people are doing. It means that never copy other people just like that when the people are investing in one currency then you also thinking about investing in that currency.

What are the causes of FOMO and how can we prevent it?

Basically there are several reasons behind the ocurance of FOMO. The increase in the prices of cryptocurrency is one of them. Yes when the price of a specific crypto currency increase it also surge FOMO between the investors then they start buying more crypto assets without thinking about the even rise in their prices. Watching others investors success and watching their profits can also lead towards FOMO.

Spreading news is also a cause of FOMO. When the prices in the crypto market increase and the investors invite other people to invest in cryptocurrency and then some of them are unaware of the crypto market trends so in results they starts suffering in FOMO the fear of missing out.

In the past the people who missed the big opportunities of getting huge profits are just waiting for that moments and wishing to invest again in the cryptocurrency. And when they invest again their FOMO remain the same juts like previous happening and the due to FOMO they don't get any significant profits during the price increasing period.

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How can we prevent FOMO?

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The prevention of FOMO is also very compulsory. It requires the acknowledgement about the crypto trends, strong decision making ability and a full control over your nerves. As I mentioned above some people started suffering in FOMO by seeing others success so all the huma are not same they have different thinking abilities and senses. So for preventing fomo never copy others and make your own decisions.

To prevent FOMO make some clear goals and follow your solid strategies. Keep in touch with other experienced investors and always keep sharing your knowledge with others and also keep discussing with them about your investment and the market trends.

Make some investment plans and think about the long term benefits not about Short term. Just think about high profits and keep patience. Raise your awareness about further crypto currencies and also keep learning how to control over the FOMO which is basically a natural emotional process.

What is FUD?

The phrase FUD stands for Fear, Uncertainty and Doubt. Some people use that phrase to spread negativity among the investors and try to create a panic situation. Actually a specific community of people spread false news about a cryptocurrency or different crypto currencies. Sometimes they spread rumors about the sudden increase in the price of crypto currencies on different websites or on social media. So seeing that type of situation the investors rushed to buy new crypto currencies and eventually they are pranked and suffer in FUD.

What is the cause of FUD and how can we prevent it?

There may be several Reasons and circumstances behind the spreading of FUD. When a person or a investor remains unaware of market trends and when suddenly he open the market after some time to check out his investment and what is happening in the market then there are many chances of getting victim of FUD. The reason is that already the false news and the runners are happening in the market and when a person open the market to see the trends then he fall victim to it easily.

In addition when a person or an investor has less knowledge and experience about the investment in cryptocurrency and then due to this less research and education about the crypto market and its trends then that type of person can also fall victim to FUD very easily. Thus he can suffer a long in it and can lost all his cryptocurrency assets and may be unable to take a part in further crypto currencies investments.

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How can we prevent FUD?

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The prevention of FUD is very important and compulsory as a investor in the crypto currencies. First of all keep your nerve in your control and whenever you get any news or rumors about the Pump situation in the crypto market then do a brief investigation before investing in cryptocurrency. Never invest in cryptocurrency by seeing others people success and getting rewards from their investments.

Whenever you get any news about FUD then before sharing it with others check the history and facts behind that News and if that news it accurate the Share it with others thus you can save yourself and other from FUD. More ever do your home work thourughly about the crypto market and learn each and every thing about it. Try to stay in touch with the professional investors and share your thoughts and knowledge with them.

Choose any crypto asset of your choice and through screenshots, explain which phase of cycle does FOMO and FUD occur?

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FUD Situation

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Well! In last year May 2022 the Luna coin crashed and So because of this panic spread among the people and they started to think that the crypto currency is in danger and it is almost completely extinct. So seeing all that situation the investors started getting withdraws from their crypto assets and then the Market started getting down. At this the The market went down a lot and the FUD Created. As you can see in the below screenshot.

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FOMO Situation

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At once the Elon Musk twitted that he is supporting the doge coin in his tesla company. He also said that I'm supporting the payment and thus the doge coin got a lot of Promotion. After this the Doge coin started trending on social media and the people started investing and buying the Doge coin. So on this the crypto market got pumped and the FOMO created. You can see in the screenshots below.

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So friends that was my entry about that challenge and I hope that you will like it. Now I want to say goodbye to everyone and invite my friends @steemdoctor1, @aaliarubab, @casv and @faridi1 to take a part in this amazing challenge of Steemit Crypto Academy.

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Written by @abdullahw2

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Thanks All

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