Tag: Fomo

Binance Tweet Warns Against Emotional Trading

by Blockchain News

A tweet from Binance, the leading cryptocurrency exchange, has warned traders against the pitfalls of emotional trading. Posted at 6:00 pm on September 3, 2023, the tweet cautions,

Don’t trade like this: 😡🤯🫣😭🥶. Emotional trading is bad trading.

The tweet directs followers to an article titled “Trading Psychology: How to Trade Without Emotions” on Binance Academy.

The guide, initially published on February 16, 2023, and updated on June 21, 2023, by Binance Academy, delves into the concept of “Trading Psychology.” It emphasizes the need for emotional discipline, particularly in the volatile crypto market.

Even if a trader knows how to perform technical and fundamental analysis at a high level, a weak or anxious mind easily swayed by emotions can be highly detrimental to their portfolio,

the guide states.

Fear and greed are identified as the two primary emotions that can lead to poor trading decisions. The guide also highlights the prevalence of the Fear of Missing Out (FOMO), especially when an asset has appreciated significantly in a short period. This can cause traders to make decisions based on emotion rather than logic and reason.

Experienced traders are noted for striking a balance between fear and greed.

Fear protects traders from taking unnecessary risks, while greed motivates them to capitalize on opportunities. Over-reliance on either emotion, however, typically leads to irrational trading decisions. 

the guide explains. Over-reliance on either emotion typically leads to irrational trading decisions.

Practical tips for maintaining emotional discipline are also offered in the guide. These include setting achievable goals, taking regular breaks, analyzing failed trades, and creating a detailed trading plan that includes risk management strategies.

The guide points out unique challenges faced by crypto traders, such as the market’s 24/7 operation and high volatility, which require quick thinking and strong discipline.

The guide concludes by stating that controlling emotions is an invaluable skill” that will protect traders from making impulsive decisions.

Ultimately, becoming a good trader requires years of consistent learning and practice. There’s no shortcut or life hack to getting rich by trading. Follow a strategy that suits your financial situation, keep practicing, and don’t let fear or greed force you to make a decision you wouldn’t usually make.

It adds.

Among the practical tips offered for maintaining emotional discipline are setting achievable goals, taking regular breaks, analyzing failed trades, and creating a detailed trading plan that includes risk management strategies.

Image source: Shutterstock

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FOMO will drive crypto adoption in 2022, says BlockFi co-founder

by Cointelegraph

Flori Marquez, the co-founder of cryptocurrency custodian BlockFi, says that upwards price action, new talent and regulatory clarity combine to create a bubbling FOMO atmosphere for crypto adoption in 2022. In an interview with Yahoo on Dec. 19, Marquez also shared insights regarding industry growth in 2021.

While the number go-up technology of Bitcoin (BTC) remains the honey that draws in new adopters, Marquez suggests that crypto has become ‘more digestible’ for the average consumer than it was back in 2016. She explains that other significant drivers for growth in 2022 will be the wealth of skilled experts coming to work in the crypto industry and regulatory clarity.

The stats she cited set an optimistic foundation for growth in 2022. According to BlockFi research, one in ten people plan to gift crypto this year. Also:

“About two-thirds of Americans prefer to talk about crypto versus if you think about five years ago, only 1% of people had ever traded crypto, and 50% of Americans had never heard of crypto five years ago.”

BlockFi’s internal metrics are also indicative of burgeoning adoption. In the first year of their reward card’s operations, 75,000 signed up. Marquez points out that the figure is “absolutely huge because most fintech companies look to see about 10,000 credit cards in their first year.”

More interesting for FOMO in 2022 is the revelation that for the “majority of Blockfi’s clients–when they receive a BTC reward, they’re not selling that for cash.”

Related: Robinhood enables US users to gift crypto for the holidays

These discoveries reflect broader adoption trends across the crypto space, particularly among younger people. A recent CNBC survey revealed that 83% of millennial millionaires now own crypto. ‘Hodling’ is catching on, as similar to BlockFi’s clients, 38% plan to hold, and only 6% plan to reduce their crypto exposure in the coming year.

For Marquez, however, it’s the festive timing of new regulations and new talent coming into the crypto space that is pivotal. She comments that crypto and fintech have been huge attractors to people that are looking to learn something new and expand their careers.

“So I think we’re going to see more talent shifting from other more traditional industries into crypto and the fintech sector. And the last thing that I think we’ll see in 2022 is some regulatory clarity.”

As families come together during the holiday season with the Bitcoin price holding steady above $48k, a deep-seated, long-awaited FOMO atmosphere could drive both prices and adoption in 2022.