What Does Fear Uncertainty And Doubt Mean
FUD is more or less bad news about the cryptocurrency space that is spreading via social media or news sites, that is not substantiated. However, its important to be able to tell the difference between legitimate criticism and real FUD.
Someone who is spreading information for which there is no proof is guilty of creating FUD. A person who raises real concerns about a project, which has problems that they can verify with information from the white paper, team, valid sources, etc. should be treated as a valid concern.
Many people are not able to tell the difference. This generally gives you two very vocal groups on crypto message boards. Either they extreme Fudsters who will take anything that happens to be a sign of the end times or blindly loyal fans for which a project can do no wrong. Both of these groups are dangerous, and you should find yourself somewhere in the middle.
Why Fud Isnt Always A Bad Thing
FUD isnt always a bad thing. For example, because so many BTC miners left China seeking a more welcoming environment, BTC mining is now a much greener industry, taking place mostly in the United States under stricter conditions.
FUD also creates an opportunity for trading volatility for traders and buying assets a lot cheaper for investors. Bitcoin price is already back at the highs set before the FUD began, proving that it wasnt a bad thing at all, but another chance to go long and make money on the price swings in between.
When FUD strikes, be sure to consider opening a short using PrimeXBT, an award-winning trading platform. When FUD is over, going long leads prices back to new highs and traders to serious profits.
Because there is so much subjectivity to crypto FUD, weve prepared these commonly asked questions to make it easier to understand whats going on with crypto FUD.
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Fud Meaning In Cryptocurrency
When it comes to crypto, FUD takes on some very specific meanings. In particular, were talking about how speculative and negative news affects crypto prices and trading. Simply put, its disinformation designed to interfere with crypto trading.
Crypto FUD tends to negatively impact the value of a currency. But not for any concrete or statistical reasons. In fact, FUD is the exact opposite. In the crypto world, FUD is spreading the anxiety-inducing news that has nothing solid backing it up.
Probably the best example of this came in 2017. Thats when JPMorgan Chase CEO Jamie Dimon made a bunch of negative comments about crypto to the media. In particular, he spoke out against Bitcoin.
Its just not a real thing, eventually it will be closed, he said at a conference. Its worse than tulip bulbs. It wont end well. Someone is going to get killed. Currencies have legal support. It will blow up.
Despite his strong words, Dimon didnt provide any objective data. He just made claims. And given his prestigious position, these claims stirred up a lot of fear, uncertainty, and doubt.
So much so, that it quickly had a material impact on Bitcoin. As reported by CNBC, Bitcoin almost instantly dropped in value following Dimons remarks. The currency quickly lost a couple percentage points.
Ignore The Fud And Hodl A Guide To Talking Like A Cryptocurrency Insider
This article provides a quick glossary on introductory cryptocurrency terms and phrases.
According to Google, What is Bitcoin? was one of its biggest search queries in 2018. With cryptocurrency prices having fallen more than 80% from the highs seen in January of 2018, many are wondering whats in store for the major cryptocurrencies like Bitcoin, XRP, and Ethereum in 2019.
If the predictions look grim, its worth remembering that, as Stan Schroeder writes in Mashables Crypto Blockchain 2018 Year in Review, While the cryptocurrency bubble appears fully deflated on most charts, if you look closely, the prices of Bitcoin and Ethereum are still far, far above than what they were just two years ago.
No matter how things play out, theres no question that cryptocurrency has spawned its own rapidly evolving language. For an outsider looking in, it can be difficult to keep up: Words get warped and swapped, memes take over, and next thing we know, language has mutated almost beyond meaning .
Were here to bring it back down to earth, and help you decipher the cryptic world of cryptocurrency, one insider term at a time.
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Fud In The Context Of The Cryptocurrency Market
FUD is especially powerful in the crypto market because the currency Bitcoin is still a speculative asset, and each altcoin is even more speculative at this stage. That means that these assets are highly volatile, making assigning a value even more challenging, and therefore price swings can be dramatic over information that often amounts to be nothing, or often false information entirely.
What Is Fud Hodl Or Fomo In Cryptocurrency Lingo Find Out More Here
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Are you caught in a bind not understanding what others are talking about while scrolling Reddit, Cryptocurrency related forums or Slack groups?
Just a year back, I was also left scratching my head when I first got involved in Cryptocurrencies. Therefore, I decided to put together a list of the Cryptocurrency Lingo/Slang which can help out others as well.
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What Does Fud Mean
Many newbies keep asking the question, what does FUD mean in crypto? FUD means Fear Uncertainty and Doubt. It is a psychological manipulation tactic used in marketing. It involves misrepresenting facts or presenting information about something to propagate doubt and suspicions about its profitability or long-term sustainability.
For example, in the early 2010s, many traditional finance enthusiasts used FUD to discourage people from investing in crypto.
Why Fud Can Affect Prices So Much
The reason FUD can have such a significant impact on the cryptocurrency market is that it sends a signal that:
- or something is wrong with the market
- or a massive number of people will leave the market soon.
An example is Chinas ban on ICOs, mining restrictions, and the subsequent ban on cryptocurrency trading. All this served as a prerequisite because millions of Chinese citizens are likely to sell their cryptocurrencies due to the new rules.
Jamie Dimons comments indicated that something was wrong with the market. Jamie Dimon has a very high level of influence in the financial world, considering that he is the CEO of JPMorgan Chase one of the worlds largest and most powerful banks. When he called Bitcoin a scam, many people believed him and started selling their digital assets.
The sharp decline in prices creates the impression that something is wrong either with the entire market or its elements. A vast number of people may soon leave the industry.
Its because the sharp decline in cryptocurrency prices resembles a stock market crash. A quick collapse in prices is overwhelming for many people. When it happens, it can seem like the market is about to collapse completely.
Many people cannot handle the high volatility and sell their digital assets to avoid FUD. While many long-term cryptocurrency investors consider this movie to be typical for newbies, it still happens and appears to be happening regularly.
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What Does The Acronym Fud Mean
The acronym FUD stands for Fear, Uncertainty and Doubt.
When it comes to stocks and crypto, FUD is often referenced when someone is pushing fear, uncertainty and doubt about a given coin or company.
However, FUD isnt based on facts. Instead, it based on rumor, gut feelings, opinion pieces and predictions.
- I believe that the stock price will fall next week.
- This cryptocurrency has no future.
- The price is probably going to fall even further.
- Hedge fund manager Joe Bloggs believes that Bitcoin will crash in the near future.
Unless these statements are accompanied by supporting evidence, they are distractions. They are FUD.
Opportunities Created By Fud
FUD often leads to significant price drops, causing many people to lose money temporarily, but FUD also creates opportunities.
The emergence of FUD may be the perfect point to enter the market and buy crypto assets, but only for smart and patient people. Patient enough to wait for the FUD.
After a price drop caused by FUD, buying a cryptocurrency is like purchasing a stock after a significant market crash. Many stock investors view a stock market crash as a kind of sell-off, a limited-time opportunity to buy stocks at a discounted price.
On the other hand, it can be challenging to calculate the FUD cycle time accurately. Its because its not always clear where the bottom of the cryptocurrency price drop due to FUD is.
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What Does Fud Mean In Crypto
In crypto, FUD means one of two things:
1. To spread doubt about a particular token or project in an attempt to manipulate prices downward
2. The general skepticism and cynicism about crypto as an asset class, and any related news/events
In September of 2021, the Solana network suffered an outage for about 12 hours. This is an example of the kind of event that can generate significant FUD, regardless of the initial cause or eventual resolution. Even the rumor of such a negative event possibly happening can generate FUD.
FUD can be generated over just about anything:
A crypto influencer tweets that Tesla wont accept BTC as payment: FUD
China bans Bitcoin for the 5th time this year: FUD
An investment manager says they will never own crypto: FUD
Hodl As Strategy And Philosophy
HODL soon became a byword for an approach to cryptocurrency investing that shuns trading based on short-term price moves. This approach mirrors GameKyuubi’s rationale: novice traders are likely to botch their attempts to time the market and lose money or make less than they would simply holding onto their coin.
Short-term swings aside, bitcoin’s long-term volatility defies familiar logic. The price shot up by 52,000% from 2011 to 2013, then plunged by more than 80% over the following year. Since then it has shot to more than 17 times its previous high, only to fall again by half. Throughout the history of the cryptocurrency, credible voices have made logical arguments that it would go “to the moon” or crash to zero.
Hodlers wash their hands of all this volatility and prognostication. They simply hodl, which helps them to counteract two common destructive tendencies: FOMO , which can lead to buying high, and FUD , which can lead to selling low. The latter is occasionally referred to as SODLing.
For hard-core believers in cryptocurrency, known as maximalists, HODL represents more than a strategy for reigning in FOMO, FUD, and other profit-eroding emotions. These true believers hodl because they think cryptocurrencies will eventually replace fiat currencies and form the basis of all future economic structures. They, therefore, see the fiat exchange rate of cryptocurrencies as irrelevant.
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What Does Fomo Stand For
FOMO in crypto simply means Fear of Missing Out. It refers to a phenomenon where a person is forced to buy a coin, or participate in a seemingly profitable action. Not because he/she feels that it is the best decision at that moment, but only because many other people are.
When a lot of people are buying a coin , it becomes tempting for others to join in without evaluating the reasons behind it. People bow to FOMO because they are afraid of being left behind.
Factors That Bring Fud In Investors
Fear, uncertainty, and doubt will always be present in the markets. Especially with cryptocurrencies, and their current scenario where many governments are still unsure about making them legal.
There are a lot of factors that could bring fear, uncertainty, or doubts to the crypto market. Below you may find a few examples of such cases:
1:When China banned Crypto transactions: China is the second-largest economy in the world. Now, when a country like that officially bans all Crypto transactions in their country, it is a cause for concern. For the investors who have invested their savings in Cryptocurrencies with the hope of earning better than average returns, this is a major setback. Fear of crypto crashing down as it did in 2017 is there in the investors mindset.2: Elon Musk and his views on Cryptocurrency: Every Crypto trader is familiar with the name of this Billionaire. For his active interest in the crypto world. Crypto traders keep a close eye on his actions and his tweets regarding cryptocurrency. Therefore, when on March 24, when Elon Musk approved to take Bitcoin as a payment for Tesla Cars. All the Cryptocurrencies shot up like crazy. But within two months, he took it back by saying, crypto harms the environment, because of which he could not accept it as payment for Tesla cars. Crypto tumbled like crazy, just the way it had jumped up.
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Repackaging Fud To Fomo
The sheer brilliance of the narrative economy is that FUD can be packaged into FOMO and FOMO can be repackaged into FUD. The control of China through majority of Bitcoin mining rig concentration was the original FUD, then the narrative changed to China cracking down on miners and de-concentration of these miners being the new FUD, the exact opposite narrative. Now the Bitcoin maximalists are repackaging FUD as the miner migration going to be picked up by others and using clean energy. Narrative economics have been repackaged from the same issue going from bad to good, each time people fall for it it just has a different economic value!
With the global hashrate migrating from China, two FUDs are being repackaged as upside to create FOMO i.e., China controls Bitcoin because miners are located there, but miners dont control Bitcoin, secondly Bitcoin mining is dirty because it comes from Chinese coal well with the transparency of miners in other countries and that better more greener energy so Bitcoin miner is moving out of China due to new Chinese regulations should be a great thing for bitcoin as it changes the narrative and repackages narratives. But well, neither Bitcoin maximalist nor naysayers or newbies care about data- they are the perfect proponents and victims of the narrative economy and will continue to be so.
How Is Fud Made
If you have spent a lot of time on social media or the internet related to the crypto industry, you may have been exposed to FUD attempts many times and not realized. Well, have you ever wondered how an FUD attempt takes place or is carried out?
Lets give an example right away Lets say you own a serious amount of crypto assets and you want to make a serious profit from this asset. You also have a social media channel or website that appeals to a serious audience.
If you have these two possibilities, you will spread a news or sensation that will have a FUD effect on people for your crypto asset. The FUD study to be done will be news that the related crypto asset will show a serious rise, and people who see this immediately start to buy it by investing in that crypto asset.
As people start to buy this crypto asset, the price of the crypto asset naturally rises. In other words, the asset value in the hands of the person who spreads the FUD starts to increase. When this rise reaches a certain point, the person who spreads the FUD sells the amount in his hand and makes a profit. Thats where a FUD success is achieved and what happens is to investors who are exposed to FUD.
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Terms In Crypto That Newbie Traders Must Know
JAKARTA In the midst of the cryptocurrency boom, many people are actually unfamiliar with a number of terms in the crypto world. Newbie investors or traders often ask questions like what is FOMO? What is HODL? What is Blockchain?. People who are new to the crypto world will be confused when they hear new terms such as FUD, FOMO, HODL, Blockchain and so on.
Before entering the crypto world, it’s a good idea for new users to get to know various terms that are often spoken by old crypto players first. This allows new crypto players to stay informed and connect when spoken to.
Satoshi Nakamoto created the first cryptocurrency, Bitcoin in 2008. Satoshi Nakamoto’s name has not been revealed until now. No one knows who or what group behind the name. However, cryptocurrencies have spread to various parts of the world and their users are experiencing rapid growth.
The following are terms in cryptocurrencies that new users must know as compiled by VOI Tekno from various sources.
Cryptocurrencies are decentralized digital money that uses blockchain technology. In its transactions, cryptocurrencies use a peer-to-peer mechanism, namely from one user to another directly without any intervention from third parties such as banks.
Altcoin is an abbreviation of the word coin alternative which refers to a digital currency other than Bitcoin.
9. Pump and Dump
10. Bearish and Bullish