FOMO (Fear of Missing Out)
Fear of missing out: emotional buying after rapid price rise.
FOMO: most common crypto psychology error. Sees BTC +30% in week, panics, buys. 70% of FOMO buys happen in euphoria phase = near top. Antidote: DCA (regular buys, no emotion).
In plain words
Fear of missing the profit. You see BTC did +30% in a week, panic hits, you buy at the top. The most common mistake in crypto: most FOMO buys land near cycle tops. Antidote: regular emotionless buying (DCA).
Example
Nov 2021: BTC 69k, retail FOMO (Google Trends 10x spike). 2 weeks later -30%, year later -77%. Mar 2024: ATH 73k, similar FOMO, -25% by Aug.
Also known as: FOMO, fear of missing out