How to Avoid FUD
Whether you are a full-time, part-time or play-time crypto-trader or investor you can’t escape the expression FUD.
FUD is an acronym stemming from the words Fear, Uncertainty and Doubt.
These words are everyday potential perils and something we have all come across at some stage, but in the world of Crypto-currency they are real and present dangers which we have to face on a minute to minute basis.
What is FUD?
At its core FUD is a combination of real, exaggerated or just made up threats, that can and do affect the markets and people who trade on them. It might take the form of some made-up data projecting a bearish market, or it could be some fake news about a coin’s immediate future. The point is, this information has an agenda and these agendas are never positive. Well, they are never positive for anyone other than those making it up and sharing it.
It’s the old run on the bank story… If you tell enough people that a bank is in trouble the idea starts to take hold and if the facts aren’t set straight quickly, this can cause an actual financial crisis.
Don’t doubt for a second that there are people and companies out there deliberately sharing fake and exaggerated stories for personal gain. The crypto markets are as volatile as markets get and because of that, it doesn’t take much for the numbers to stray.
So how do you avoid falling for Fear, Uncertainty and Doubt?
Well, there’s some easy answers and some tough ones too.
The simple answer is not to trade at all. There are two ways to make money from Cryptos (well three if you count mining). Traders rely on the volatility of the markets to make their money, but it’s also possible just to invest. As the name suggests investors simply buy a chunk of Crypto and hold on to it until it reaches their projected price when they sell it. It might take a fortnight, it could take ten years and it may never happen at all. The point is investors don’t have to worry about paying attention to passing news… good or bad.
The harder answer is to really do your research. If you find out or hear something on social media, blogs or the grapevine, try to find the source. Don’t buy the first thing you hear, track down the real story search for quotes. Remember, people are out there trying to deliberately sow doubt with the sole intention of watching their investments grow.
Whichever you decide to do make sure you’re not adding to the mountain by sharing anything suspicious.