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**Good day** steemians, After going through the process ordered by @liasteem, I'm able to get the understanding of ***Fear of missing out(Fomo)***
and ***Fear, uncertainty, doubt (FUD)"*** which motivates me as a newbie to learn more about cryptocurrency from this community. Base on that I'm writing about what Fomo and FUD are and how they occurs.
> Explain what FOMO is?
**FOMO** is a more personal thing. The fear an investor possess in missing out something that others are enjoying (for example the fear of missing out on Ethereum gains while others are picking out their Lambos). Investors do purchase a coin as a result of Fomo and finally not taking profits on that coin, or not to set stops on a coin that has already gone up considerably. It is the idea you get that rational profit taking or waiting for other expectations now will result in you missing out. This fear is what portrays investors to purchase at the top or hold during a dip after making profits (only to lose some or all of their profits again). Investor can be trap by FOMO when they act on impulse due to the fear of missing out.
> Explain where FOMO occur! (Need screenshots)
FOMO occurs at the phase where the price of cryptocurrency increases to higher rate. Due to the rate of increment and investor is afraid of missing a profit at this higher rate and after which found out that the price downtrend again. The screen shut below is where Fomo occurs in cryptocurrency chart.
> Explained what FUM is
**FUD** stands for ***Fear, Uncertainty, Doubt***. The term is used when an individual is attempting to create a negative state of mind to other investors by presenting a data which is unreliable to show an upcoming price drop in price of cryptocurrencies. Many new investors tend to get mislead with the term as it often gets mentioned in cryptocurrency-related forums. To understand what is FUD and the context in which it is used, it is very relevant to keep in mind that collective sentiment is one of the most important price drivers for the crypto market . The price of a cryptocurrecy can drop without basing on fundamentals or charts, but rather rely on bad news that are widely spread around social media. Many times the fallacious news isn’t substantiated or grounded in reality, and instead ends up to be something silly like a popular talking head’s opinion that Bitcoin is a bubble. The fear, uncertainty, and doubt-inducing idea that is spread around media is termed as FUD.
> Explain where FUM occur! (Need screenshots)
FUM Occurs at bearish phase. The downtrend of the price of cryptocurrency puts fear in investors hence they hesitate to sell all their cryptocurrencies and after that found out that the price rises again. Below is the screen shut of where FUD occurs.
> Choose the 2 cryptocurrencies you want, then use the graph of the 2 cryptocurrencies to explain where FOMO and FUD occur! (Need screenshots)
### Where Fomo occurs in Ethereum chart
Below is an Ethereum chart showing of different phases. But my emphasize now is on Fomo. This occurs when the price of Ethereum started rising but an investor didn't buy it earlier on when the price was low, when the price keeps uptrending, he or she will now see that those who bought it when the price was low are getting enough profit, he will be hasten to buy it at the higher state having in mind not to lose the chance as a result of the highly increasing rate. But after purchase the price would begin to downtrend again.
### Where FUD occurs in Bitcoin chart
Below is a screenshot of Bitcoin. FUD occurs when the price of Bitcoin keep decreasing and hence great fear on investors which compel them sell their Bitcoin with the aim of not to run lost. But after selling the Bitcoin own, the price rises again.
> Conclusion
My regards goes to this community for the great initiate in educating us about cryptocurrency. I'm able to get understanding of Fomo and FUD and how investors are affected by it. I will like to learn more in the next assignment.
I invite @baako1, @abdulrazak1 and @governor1 to participate in this program
The first two screenshots were taking from: [coin market cap](www.coinmarketcap.com)
and the later two were taking from: [trading view](www.tradingview.com)