What is FUD in Cryptocurrency?
What is FUD in cryptocurrency you need to know especially for people who have recently become interested in cryptocurrencies. In the flow of information released by various sources, it is difficult for them to navigate on their own. Moreover, sometimes the information may be false.
What is FUD in cryptocurrency, it will be easy for us to understand if we look at the history of the appearance of this word. FUD (FOOD) is an acronym (type of abbreviation) which translates as “Fear, uncertainty and doubt.”
The concept came to the crypto market from the stock market. Moreover, initially this word was used most of all in propaganda and marketing campaigns. It is believed that it was first used in the 1920s. It denoted the submission of provocative information about an event or product, which was intended to confuse and make the wrong decision. Or make a decision that is beneficial to those distributing FUD.
Moreover, the information may be correct. However, the person making the decision is usually already influenced by the propaganda of the FUD organizers. Generally speaking, this information sows uncertainty, fear, worries.
Regarding the crypto market, this word has a similar meaning. This is information that causes conflicting feelings and desires in the investor. In addition, it is designed to force a trader or investor to take some action on the crypto market. Whether it is the sale or purchase of a crypto asset.
Inexperienced traders are especially prone to such doubts. For example, when they open a long position, and information about the approaching fall is launched into the information masses. Relevant news is published in popular sources, the placement of information in which is often easily paid.
With the help of such manipulations, inexperienced traders can be confused and, as a result, a fairly large part of the asset will still be sold earlier than it should have been. At the same time, interested parties will be able to sell their pre-acquired assets later. As a rule, when the deceived traders go long again, seeing the incessant growth, and large investors start selling their assets. This is a negative example.
Sometimes FUD can be launched to artificially restrain the growth of an asset, if the marketing of the project team requires it. In addition, the FUD can be inflammatory with positive news for everyone in order to spread it even more and achieve certain goals faster. Therefore, in such cases, the news is true.
Examples of FUD in cryptocurrency
In conclusion, I will give a few examples of FUD, which are currently known to many crypto investors. First, everyone remembers the rapidly spreading information about the permanent Tether scam. For several years in a row, this information has been “wandering” around the crypto communities, either disappearing or reappearing.
Secondly, everyone remembers the threat that China will completely ban cryptocurrencies and this will undoubtedly and sharply negatively affect the bitcoin rate. Also, for quite a long period of time, this information affects the mood of inexperienced investors.
What to do?
In order not to fall for FUD in cryptocurrency, you need to consider the issue from different angles. Analyze the arguments for and against, conduct your own little investigation. Study additional materials, read several different sources of information, different views on the issue. One of the basic rules of a crypto investor is the absence of haste and rash decisions. And then your finances will grow steadily.