The crypto industry has taken the world by storm within the last decade, redefining investment returns from fiat currencies through both off-the-roof bullish and unexpected bear markets.
FUD is a very common term used in traditional marketing, advertising and investment. Essentially, it is an acronym for “fear, uncertainty and doubt” and FUD in crypto is a very important term every trader should understand.
Terms like FUD, HODL, FOMO and more have risen to prominence along with crypto. However, beginner traders still struggle to understand them and how they operate. This article discusses FUD, highlighting what it is and how you can prevent FUD in crypto.
What is FUD in Crypto?
FUD is an abbreviation for Fear, Uncertainty and Doubt. Essentially, FUD is a strategy traders use to manipulate the public about the general crypto market or specific cryptocurrencies through carefully crafted and distributed misleading information.
Crypto enthusiasts most often use the term FUD for any stunt that temporarily causes a bearish market as a result of scepticism from traders. Basically, if it opposes crypto, enthusiasts may quickly tag it as FUD The term could also focus on spreading false information to affect the public perception of a product, business or technology to create a negative stigma and undermine its credibility.
What causes FUD?
FUD in crypto can be caused by several factors. This includes :
- Concerns over the market by traders, which may raise scepticism.
- Media coverage of negative events or crypto news.
- Lack of understanding of the industry.
Any of the options above can lead to a series of actions that may cause a temporal bearish market. However, most times, misconceptions and emotions drive FUD rather than grounded facts or data.
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How does FUD affect the crypto industry?
Basically, FUD may lead to an avalanche of decisions made out of panic. When misinformation is successfully spread around, amateur traders may react poorly and scramble to sell their assets to safe. Sometimes, this may lead to a temporal bearish market.
How to deal with FUD in the crypto industry
The first thing to keep in mind when dealing with FUD is that it is mostly based on speculations and unfounded stats. Essentially, FUD takes advantage of your emotions rather than logical reasoning.
To help you stay grounded, here are some steps you should take to manage FUD in crypto:
1. Conduct proper research
The best way to stay FUD-proof is to take advantage of your research skills and dig for accurate information yourself. Basically, this is us saying that you should not take the information you see on the big media outlets for what it is. Ensure that every decision you make is out of your own research and conclusions after proper research. Subscribing to our newsletter below to get real-time industry news is a great point to start.
2. Leverage Bitmama Exchange
Trusted by millions globally, Bitmama exchange is one of the safest P2P trading platforms where you sort for the best offers and get indications of market prices. Our escrow service protects the buyer and seller throughout the process.
3. Explore Bitmama Earn
Bitmama earn allows you to stake your crypto for a specific duration and receive returns. This is one of the safest ways to protect against FUD and prevent yourself from making emotional decisions should you fall for them. You can’t rush to sell off if your coin is locked in a stake, can you?
Something that might interest you – Top 7 Ways to Earn Free Crypto in 2023,
4. Stablecoins to the rescue
Stablecoins are less volatile and do not react to market FUD, unlike other digital assets. Essentially, this is due to its design that ties its value to fiat currencies or commodities. Therefore, turbulent market conditions do not affect stablecoins like USDT and USDC as you can keep them till the storm is over.
Bottom Line
FUD is all about manipulating the market into a temporal bearishness for any reason at all. It plays on your emotions and especially affects amateur traders who are still new to the game. Therefore, it’s in your best interest to leverage the 4 strategies discussed above to prevent FUD influence that may cause you to make rash decisions.
As the best crypto exchange app in Nigeria, Bitmama offers a secure marketplace for crypto enthusiasts. Perform activities like crypto exchange, crypto staking, and creating virtual dollar or crypto cards for online payment. Get started today by downloading the Bitmama app on Android or iOS.
