FUD is an acronym that stands for fear, uncertainty and doubt. FUD means that something negative has happened in the market that has a big impact on the cryptocurrency market. I wrote about FUD yesterday in my post. Feel free to revisit this as it is very important for those of us involved in the market to know. Yesterday I discussed What is FUD in the crypto market? .
Today I will discuss with you how FUD affects the Crypto Market. FUD means we understand fear, uncertainty and doubt. FUD is based entirely on speculation and baseless rumours. But it usually has a short-term impact on the value of cryptocurrency investments, but does not have a long-term impact on the market. Usually every now and then we see an altcoin expand enough to lower the value of BTC. This affects the market for some time after which we see the price return to normal.
As we sometimes see when there is a negative impact on the market such as when a country bans crypto, it immediately has a huge impact on the market. And in some time or within one to two days that price recovers again. In all these cases it can be seen that when there is any negative impact in the market, many fear uncertainty and doubt and that is why many start selling old coins or coins kept on hold. As a result we see an immediate impact on the market. As we have seen in the past when China imposed a ban on crypto the immediate price dropped, then it rebounded. While less informed investors may make a hasty decision to sell their coins out of fear, savvy investors may buy these coins at lower prices, believing that the decline is only temporary, thus strengthening currency and market resilience.
But the smart ones take advantage of this time and when there is a temporary dumping, many people start buying these tokens or coins because they know it will return to a position to pick up in a short period of time. Such apparent negativity in the cryptocurrency market could bolster support for those who trust and appreciate the decentralized nature of cryptocurrencies and blockchain, believing it to be the answer to existing centralized financial systems and the future of financial transactions. By any means and from anywhere. This makes the Psychic and novice traders more anxious and fearful and this leads them to make snap decisions and rush towards losses. Then due to fear or uncertainty they sell the coins on hold and suffer financially. Although many may advise HODL and hold on to their coins even during price declines.
But we should know that to be profitable in the crypto market, one must be patient and have good knowledge about the market. It is important to note that cryptocurrency markets are still relatively young and volatile, without sufficient historical evidence of consistent returns to predict recovery. But here we should also know that volatility always prevails. And in that volatile market, we sometimes fall under the influence of FUD. And at that time we suffer financially due to uncertainty, fear or doubt. We must remember not to succumb to FUD with panic selling. Therefore, before deciding to invest in these markets, consider all the information and updates you are receiving from various sources of a currency or crypto asset rationally. At the same time, you will gain enough knowledge about the market and do market analysis. And all these things we need to know then we can avoid such financial loss.
Posted Using LeoFinance Alpha