You have probably been in a situation where you observe an asset rapidly increase in price. Despite the logical thing of waiting for the price to correct itself, you give in and buy with the hope that it will continue rising. This is an example of a situation where you have FOMO.
Definition of FOMO
Fear of missing out, better known by its acronym “FOMO” is the top used slang within the crypto community. The words are self-explanatory. Against the better judgment of logic, you buy an asset that is due for a price correction after its rapid rise in price.
This phenomenon is observed in all traders regardless of experience. Newer traders, who have yet to get past the phase where they trade based on emotions, are more susceptible to feeling FOMO towards increasing assets’ prices.
Origin of FOMO
FOMO originates from an op-ed in The Harbus, the magazine of Harvard Business School, by its author Patrick J. McGinnis. Originally, this term was created to describe the psychological desire of humans to be involved (or not missing out) on things. This desire is elevated through social media and has become a marketing targeting for companies.
However, its popularity really accelerated with the rise of cryptocurrency. People were entering the market because they feared missing out on the profits without fully understanding the different projects they were investing in. From this, the term spreads over to the trading of all assets. Today, it is ubiquitous on social media and discussion forums relating to asset investments.
How to use FOMO in a sentence
FOMO can be used as a noun, verb, or adjective. Some common examples are:
- “I was FOMO-ing, so I bought $1000 worth of Bitcoin.”
- “I FOMO bought $1000 of Bitcoin.”
- “The FOMO took over, and I bought $1000 worth of Bitcoin right before the dip.”
- “I gave in to the FOMO and bought some Bitcoin.”
Of course, with slang terms, you can use them in more creative ways. As it can act as a noun, verb, or adjective, you can pretty much put it in any sentence as long as the context stacks up with the content of your phrase.
Summary
Fear of Missing Out (FOMO) is an extremely common slang used in asset trading and investment. After being created in an article for the Harvard Business School, it has really gained traction in the last few years. The increased popularity can be attributed to its accurate reflection of traders’ psychology and the flexibility in various use cases.
