Steemit Crypto Academy Contest / S11W01 - The Cycle of Market Emotions

Good morning 🌄

Greetings to you all!
This is a great opportunity for me to participate in this engagement challenge which is all about the cycles of market emotions which can relates to many terms so let's discuss all the questions in detail

a) Pump and Dump

• It is a practice which cause artificial inflation of cryptocurrency prices by investors when described different kind of rumours that also cause the price to plummet. Pump and dump activity is frowned by crypto industry and it is also considered illegal activity.

b) Going to the Moon

• It is like a phrase that is used by crypto investors mostly when they show their excitement about rapid increase or rapid growth of cryptocurrency price.

c) HODL

• Hold on for dear life, is an abbreviation for HODL and it describe a long term investment of user in crypto market. Idea that is behind holding on Crypto for long terms is despite the rate fluctuations.

d) REKT

• This is a term that is used to describe a significant loss of investor in the form of crypto currency. Sudden price drop of a cryptocurrency or poor investment decisions can be the causes of this.

e) BAGHOLDER

• This term is used to describe a situation in which investors are interested investing those cryptocurrency which significantly loss its price and don't have stability in market.

f) CRYPTOSIS

• This term describes the obsession of investors with cryptocurrency. There are different investors who spend a lot of time in searching for and analysing for Crypto market.

g) ICO

• This is basically initial coin offering which is a fund raising project and it is just similar to IPO which is initial public offering. Initial coin offering is becoming popular day by day because it have and ability to raise hi amount of Crypto.

Let's talk about FOMO

FOMO is phychological and it is abbreviated as fear of missing out. FOMO can be a fear of missing any opportunity or any experience and investors can make impulsive decisions due to FOMO.

If an investor don't want to become a victim of FOMO then there is a need for proper research before making any decisions regarding investment and before making decisions there should be our research behind a particular point in which an investor want to invest.

Where in the cycle does it occur? How can we deal with crypto FOMO

This is no particular time for FOMO because it can occur at any time in the crypto market cycle but most commonly than there is rapid growth and market hype then there are high chances of FOMO. During this situation investor feel a lot of pressure for missing out potential gains.

It is very important to research properly before making any investment in that periods to avoid any loss due to FOMO. To deal with FOMO it is important to stay closer to market trends and their development and an investor should be prepared to adjust different investment strategies as needed with the passage of time.

What is the cause of FOMO and how can we prevent it ?

FOMO is driver when there is a fear in between investors to miss any opportunity Which may lead to impulsive decision making and gains for a short term rather than gains in a long term.
If we want to prevent this situation then it is very important to have a strong approach before making any decision about investment and there should be very clear goals and objectives for avoiding more impulsive decisions that benefit for short term only.

Investors should have a lot of patient and they should avoid chasing rumours and they should keep in mind that they have to focus on long term success. By following all these things that I have described we can prevent ourself from this situation.

What is FUD ?

FUD is composed of fear, uncertainty and doubt and it can be intentionally or unintentionally but overall it creates are sense of fear as well as complicated situation and create panic. It can be spread in many forms like while motivating market manipulation or if there is a simple desire to create chaos.

What is the cause of FUD and how can we prevent it ?

• Most common cause of FUD is when there is market manipulations in which there are different individuals that can be separate or can be in the form of groups for spreading negative information in order to making down the price of particular currency or whole market. This can be done for the purpose of gaining short term profit.

• If someone is spreading rumours or false information then it can also be a leading cause of FUD. These rumours are when there is an uncertainty among investors or incomplete information spread.

For the prevention of FUD there is a need to keep an eye on different market trends so that before making any decisions regarding investment you may search and analyse all the situation properly.

If you listen some negative rumours or news then you should stop making decision for a particular period of time in which there is uncertainty or confusion and should not invest in that time.

Choose any crypto-asset of your choice and through screenshots, explain in which phase of the cycle does FOMO and FUD occur.

Elon musk tweet at first of November about cryptocurrency and after that there was a FOMO situation created. Below is the screenshot of tweet by him.

Elon musk tweet

In the below screenshot that I take you can see the FOMO clearly. That was the situation created after his tweet.

Trading view

In May 2021 when there was luna crash then it was a big loss for market and investors thought at that time that cryptocurrencies going to be end that's why many of the investors starts to withdraw their investment and that's why market down over all very rapidly and that was FUD situation created at that time.

Coinmarket cap

After that the result of the situation FUD you can see below in the screenshot!

Source

That was all about both the situations along with screenshots as well as many of the new terms regarding to cycles of marketing motions.

I want to invite here
@suboohi
@radjasalman
@stef1
To participate 😊