Ways To Avoid The Loss Caused By FUD

Investing and trading, especially in the crypto world, does not only require technical and fundamental analysis skills. One important aspect that is often forgotten is the psychological aspect which plays a major role, sometimes even bigger than other aspects. There are many ways to learn about the psychological aspects of investing in crypto, and one of them is by looking at cryptocurrency government regulation.

Impact of FUD
This condition is known as stocking FUD or spreading concern over an asset.

FUD itself can lead to a decrease in the price of an asset due to exaggerated concerns and ultimately lead to strong selling pressure. One obvious example is yesterday’s Bitcoin correction.

Some Ways to Avoid FUD
This opinion drift is very dangerous because it can create concern and lead to market imbalances. But don’t worry FUD can be avoided by following several ways, including from the psychological side and the technical side.

Psychological Side
• Believe and Strengthen Psychological Conditions
The first thing that can be done is to be confident and strengthen the psychological condition. By reinforcing psychological conditions that are generally damaged by worries and assumptions, FUD will not have a significant effect.

Generally, FUD can affect if an individual is not confident and easy to influence. So that the most appropriate way apart from believing and calming down on reality, investors and traders can analyze the causes of FUD logically.

• Logical Analysis
It is very often that the media and individuals take advantage of the emotions of other individuals to get interested in the news they bring. This is because when humans see emotionally, often decisions made will occur in a hurry which is often detrimental.

Technical Side
Not Spread FUD
One thing that would make it easier for the FUD to not happen is not to propagate the FUD itself. Often, FUD itself arises from the assumption that when there is negative news or rumors, individual assumptions will make it a driving force for prices to go down.

If the FUD is spread and many people believe it, it will create herding behavior or following nature which will eventually make the trust be trusted by many people. This trait is a human instinct according to psychological and economic theory.