No idea about crypto currencies? Doesn’t matter. The following are some of the most important concepts when it comes to Bitcoin and other crypto currencies.
Attention: The following lines neither replace your own research nor want and can they be complete in any way. There are only five concepts from the area of crypto currencies, which everyone should know, who deals with the topic.
FOMO – The Fear of Missing Something
Especially when prices explode – as was last the case at the end of 2017 – people become nervous: “If I had bought yesterday, I would have made a profit”. In the worst case, you can buy any token you want without finding out about it. The concept behind it is called FOMO and stands for the fear of missing something (Fear of Missing Out).
My tip: Take a deep breath and inform.
FUD – Fear, uncertainty and doubt
Just as unhealthy as FOMO. Fear, insecurity and doubt occur when prices suddenly collapse. Then you think: Quickly, I have to sell before things get worse. And if negative headlines are added, for many it’s over very quickly.
HODL, HODL, HODL
The way out of FUD and FOMO: just muddle through. The idea behind it: Simply keep your Bitcoin in your digital wallet instead of selling it in a panic.
My tip: Better than FUD and FOMO, worse than looking at analyses, reading about the topic and making rational decisions. In case of doubt: do it.
Watch out for the shitcoins!
Currently Coinmarketcap lists a total of 2,072 crypto currencies, the number of unreported cases is uncertain. Sometimes you can tell by their names that they are not serious projects. Or would you invest in HollyWoodCoin, TrollCoin or PonziCoin? Hopefully not.
Pump & Dump: In case of doubt, things can happen very quickly
What is prohibited in regulated finance is not a problem in the Bitcoin ecosystem. The principle: Some people agree on a certain time and date, when they put a lot of money into a project in a short time (pump). This drives up the price. Then they wait until others become aware of it and sell their tokens again, the price falls (dump). They mainly rely on FUD, FOMO and Shitcoins. What remains are a few who were able to enrich themselves and many more who are glued. Appointments take place in messengers, mainly telegrams.
My tip: hands off. Otherwise: money away.