Part 3/7:
Fear of missing out (FOMO) is a significant psychological barrier that can lead to impulsive decisions. Investors often chase trendy coins or those appearing as "hype" on social media platforms without conducting proper research. The pressure to participate in every movement can lead individuals to become exit liquidity for experienced investors.
To counteract this urge, traders should resist jumping on "hot" coins after they’ve already surged. Instead, early positioning and patience can be more profitable strategies.