FOMO
Fear Of Missing Out. The anxiety that an exciting opportunity is being missed, often leading to impulsive investment decisions based on hype rather than analysis.
Why It Matters
FOMO (Fear of Missing Out) describes the anxiety individuals feel about missing investment opportunities. Recognizing FOMO can help investors make more rational decisions and avoid impulsive trading based on market hype.
Example
For instance, if a cryptocurrency's price suddenly skyrockets, many investors might rush to buy it out of fear it will continue rising. This can lead to poor investment choices driven by emotion.
Beginner Context
As a beginner, being aware of FOMO is important as it highlights the psychological aspects of investing. It emphasizes the need for careful decision-making rather than reacting to fleeting trends.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Bullish
A positive outlook on the price direction of a cryptocurrency or the market as a whole. A bullish investor believes prices will rise. The opposite of bearish.
Mempool
Memory Pool. A waiting area for unconfirmed transactions before they are added to a block by miners or validators.
Market Order
An order to buy or sell a cryptocurrency immediately at the best available current price.
Wrapped Token
A token that represents another cryptocurrency on a different blockchain. For example, Wrapped Bitcoin (WBTC) represents Bitcoin on the Ethereum network.
KYC
Know Your Customer. Identity verification procedures required by exchanges and financial platforms to comply with anti-money laundering regulations.