FOMO - FEAR OF MISSING OUT
We have all been guilty of it, if not in crypto than in real life. FOMO stands for fear of missing out and it is that drive that makes you dive into something too fast that you probably should've done some research for. It is a common thing in our daily lives as people are posting about their great lives and in the crypto world people are posting about their great gains and we all feel like we need to rush in or we are going to miss out. And the result when we FOMO is usually disaster.
When it is in the real world it is usually friends who go on trips or a night out on the weekend to that new club. We don't want to miss out on the experience and so we might spend a little more than we would've to also go on a trip or pay a high cover charge.
But in the crypto world it can mean throwing away a lot of money into a coin when the value starts to go crazy. Especially if it is a coin you wanted to buy anyway. When you start to see it skyrocket you will be tempted to buy a lot of them but that could be the point where it turns and you are now stuck buying a coin at the top. Or worse you might hear about some new project that turns out to be a scam.
It is normal to give in to FOMO here and there which is why, if you are into crypto, you really need to learn to do your own research and ONLY invest with money that you can afford to lose. No matter how confident you are in a project it can always go under and you will lose it all so be aware of that when you put your money into something no matter how great it seems at the time.