FUD stands for “Fear, Uncertainty and Doubt” – this FUD is one of the important acronyms that crypto traders widely use while buying, staking, or selling their cryptos. The term FUD simply applies to the situation where fear can get its way into the mind of a crypto trader. A forex trader may have accumulated money that they plan to invest into cryptocurrency, but because of fear, they may end up delaying or waiting for the crypto price to reduce before purchasing. At this stage, the trader may lose a huge amount of money because they were afraid to buy the crypto when the price was still stable.
What You Should Know About FUD
As a forex or crypto trader, you should reach the point where FUD becomes your friend; that is – you are no longer afraid of losing money or not. Over the years, successful crypto traders reveal that those cryptos that you don’t have any hope of gaining value in the future will in turn rise and give you up to 300% profit. Brokers should embrace FUD because when you’re not afraid of the uncertainty that will arise in your crypto investment, that’s when you’re able to make more profit even with just a little investment. https://twitter.com/francissuarez/status/1441428499835887616 In some countries like China, the government has banned cryptocurrency transactions. The fear of banning all crypto transactions could cause someone in China to sell all their crypto which may be worth a lot of money; but because the individual has not mastered FUD, they may lose some of their capital as they sold it at auction price.
How FUD affects cryptocurrency
FUD can affect cryptocurrency especially when Fear, Uncertainty, or Doubt about a certain coin floods social media or the mass media – this will not just affect that particular coin but will induce negative thoughts in the minds of individuals who intend to invest in that particular coin. Did you know that FUD can affect the price of cryptocurrencies, making coins drop and lose their value in the coin market? A lot of forex traders today don’t even monitor charts or study the historical data of particular coins. Imagine that a lot of people are talking down on a coin on social media; that alone will put fear in the mind of people that have already invested in that coin. For instance, Elon Musk’s Tweet earlier in May this year about Tsela not accepting Bitcoin for Vehicle purchases was assumed to have led to the crash of Bitcoin which affected almost all other cryptocurrencies. https://twitter.com/elonmusk/status/1392602041025843203 This sort of negative coverage will also make it hard for an advanced broker or a beginner to invest in such a coin; as it has received negative reviews from thousands of users on social media. In today’s world, when a lot of people hear about bad news concerning a crypto coin, they will harken to it without even checking if the source of that news is legit. Let’s take a look at this silly example – if the top richest people on earth today decide that they don’t want to invest in Bitcoin anymore, automatically the demand, price, trust, popularity of Bitcoin will decrease in a twinkle of an eye. On the other hand, those rumours and negative feedback that people spread on social media is what forex traders refer to as FUD. And over time, it has become a popular slang in the crypto world.
How Forex Traders Can Avoid FUD
I hope by now we all know the meaning of the crypto popular slang “FUD”. So, on these basics, we will discuss how one can avoid FUD while performing tasks in the crypto world.
Learn fundamentals and trading charts
A broker that sticks to learning the fundamentals, historical data and current trading charts of a particular coin will hardly be affected by FUD. Even when social media is circulating rumours about a certain coin, the broker will be bold enough to trust the charts and some analytical history of that coin. A good broker must be someone that can study historical data about a coin. When Bitcoin emerged, some managed to get a few Bitcoin, and along the line; because of FUD they sold it without making a reasonable profit from their investment.
Spot FUD in its early stages
Whenever you notice that the price of a coin is about to drop, you should not go ahead and invest at that moment; all you need at that time is to exercise patience and study some historical facts on how that particular coin behaves. Some advanced brokers have mastered this and this is the major reason why they are making lots of profit while others are losing on the same coin they invested on.
Learn how to read candlesticks
Candlesticks are there to help crypto traders spot when a coin is about to enter a bullish run or bearish run. When you learn how to reach the various candlesticks, you will be able to know when a coin’s price is about to rise or fall. There are numerous books available online that talk about candlesticks if you are interested in learning more about them.