Definition
Fear Of Missing Out. The anxiety that drives investors to buy an asset rapidly rising in price out of fear of being left behind, often at the worst possible time — near the top of a price move.
Why It Matters
FOMO is one of the most destructive forces in crypto investing. Recognizing it in yourself prevents buying at peaks driven by emotion rather than analysis.
Example
Bitcoin pumps from $40,000 to $60,000 in two weeks. An investor who ignored it at $40k now panics and buys at $62,000 — just before a 30% correction. That's FOMO.
Related Terms
Bull Market
Bear Market
Dollar-Cost Averaging
Risk Management