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What does the term FUD stand for?

Published: 11 июля 2024
2 min

What does the term FUD stand for? What does the term FUD stand for?

Have you ever experienced a FUD? If not, then read this post to the end.

FUD is an acronym for "fear, uncertainty and doubt", a psychological manipulation tactic in the markets.  

The goal of FUD is to make investors feel anxious and indecisive with the help of negative news. By manipulating the mood in the markets, it is possible to control the trading decisions of participants.

Imagine you bought Ethereum hoping to capitalize on the approval of an ETH ETF. But the news comes online that the approval is being postponed and you have to apply for the ETF again.  

You start to doubt the correctness of your decision. There are thousands of others like you, and the general anxiety turns into a sell-off. The price falls, and someone successfully buys back the fall. Ethereum goes into overhang, but you are already out of the market.

To avoid becoming a victim of FUD, stick to your trading strategy and:

  • Decide what you are buying the coin for and in which case you will sell;
  • Stretch your buying over time, e.g. 10% per week;
  • Do not trade on news releases;
  • Allocate no more than 5% of your portfolio to 1 coin.

FUD is a way to pick up a good asset from weak hands. Even Bitcoin fell on the news of Mt. Gox starting compensation, even though the payouts hadn't even started!

Smartmanis take advantage of such drawdowns and buy up assets. Act the same way and buy cryptocurrency at cheap prices.

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