How FOMO and FUD Shape Crypto Investments
A new survey from Kraken shows that FOMO (fear of missing out) and FUD (fear, uncertainty, doubt) have been the main driving factors behind cryptocurrency purchasing decisions, affecting more than 80% of users. Nearly 88% of respondents believe they are missing out on significant benefits.
Still, the survey also determined that optimism about future earnings was even stronger than regret about missed opportunities.
Kraken reveals FOMO and FUD in cryptocurrency investing
this opinion poll Describes an alarming trend influenced by cryptocurrency market sentiment. Kraken, a centralized exchange with a long historyhas a vested interest in quantifying this data: last month, it Adding 19 new coins to its roadmap in response to post-election bullish sentiment.
Although The cryptocurrency space has a long history of hype bubblesKraken described their influence specifically:
“The majority of cryptocurrency holders have made investment decisions in the past based on FUD (81%) or FOMO (84%). Cryptocurrency holders are particularly concerned about missing out on opportunities to profit from the cryptocurrencies they already hold, rather than missing out on new opportunities,” the survey said.
This research by Kraken is particularly timely because Bitcoin just topped $100,000 for the first time. overall bull market Already driving the development of many crypto assetsthe driving force for progress is still strong. The data has two meaningful takeaways on this issue: Emotional appeals are powerful and market optimism is clearly high.
Research also reveals Demographic information and draw particularly relevant conclusions. With rare exceptions, every older group is more convinced that they are missing out on the biggest gains from cryptocurrencies and Further gains are still coming. Most users aged 18 to 29 believe they have missed out on significant gains, but most users over 60 remain bullish.
Additionally, the survey documented gender gap Also among these trends. For example, there is a 24% gap between men and women who “make cryptocurrency investment decisions due to fear of missing out on price spikes.”
Men look a lot More susceptible to FOMO. These patterns are repeated across several similar problems. The report made no mention of non-binary respondents.
Overall, Kraken identifies some of the biggest sources of FUD and FOMO and provides advice on rational investment decisions. Social media can be a valuable source of market information, but it is also the greatest source of these emotional stressors. The company recommends maintaining a critical attitude to better navigate the market.
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