By Nathan Ferguson
JOMO is a term coined to describe the joy of missing out on opportunities when trading cryptocurrencies; it is especially enjoyed when traders refuse to follow a certain trend. It refers to the feeling of satisfaction that comes from not participating in a popular trend or activity, even if it appears to be profitable. By not following a certain hyped-up trend, you’re more likely to make wise investment decisions and avoid costly mistakes.
It is the opposite of the fear of missing out or FOMO, and it’s the antidote to price rallies often created by frenzy and hype. In cryptocurrency trading, JOMO can be beneficial in several ways. First, it can help you avoid impulsive decisions based on market hype or rumours, which often lead to losses. By staying away from the market and waiting for more reliable information, you can make more informed and rational decisions.
Second, JOMO can help you maintain a healthy work-life balance and reduce stress levels. Cryptocurrency trading can be highly volatile, and constantly monitoring the market can be mentally and emotionally exhausting. By taking a break and focusing on other aspects of your life, you can recharge and be more effective when you do decide to re-engage with the market.
Further, JOMO can help you avoid scams and fraudulent activities that are common in the cryptocurrency industry. By being cautious and not chasing after every hot trend or new project, you can avoid falling prey to fraudulent schemes and losing your hard-earned money.
Example of JOMO
During the bull run of 2020–2021, many people called for the market to go up, which likely caused many people to make purchases at the top. Many market experts predicted that the price of Bitcoin would most likely hit 100,000 USD by the end of 2021. The stock-to-flow model, which is accurate through most of the bear and bull cycles of Bitcoin, supported this prediction.
This caused the market to go up even more, creating a bubble. However, the price of Bitcoin failed to reach its target of $100,000 after reaching a peak in November at 69,000 USD, dropping by 60% since. When that bubble burst, people lost their money. This led to some people who made money by selling or not buying into the initial rally at that time being rewarded.
Moreover, JOMO traders were able to hold onto their capital and buy low when the FOMO-dominated market was inactive, like in 2022’s2022’s June, which was the lowest point for Bitcoin.
How can FOMO be turned into JOMO?
The fear of missing out or FOMO can be a common experience in cryptocurrency trading, particularly when prices are rapidly rising. This feeling can lead traders to make impulsive decisions based on a desire not to miss out on potential profits.
It’s crucial to do your research and have a solid understanding of the market and the specific cryptocurrency you’re considering trading.
Additionally, it’s important to have a clear trading plan in place and to stick to it. This can help you avoid making emotional decisions based on FOMO and instead make well-informed trades based on your trading strategy.
you should never invest more than you can afford to lose. By being disciplined and rational in your trading approach, you can minimize the impact of FOMO and increase your chances of success in the cryptocurrency markets.
Conclusion
JOMO is a term that refers to the excitement and pleasure that comes from not participating in a particular activity, especially when it is something that is seen as risky. This is especially true in the world of cryptocurrency trading, where the potential for big rewards can be overshadowed by the potential for big losses.