Bitcoin, the largest and most popular coin on the market, is up 131% so far this year thanks, in part, to investors' belief that the incoming Presidential administration will create a more favorable regulatory environment for crypto.
The more popular term for this feeling is FOMO — fear of missing out — and it's a force that, if left unchecked, could seriously jeopardize your portfolio, says Amos Nadler, founder ofWhen it comes to missing out on investments, "It's OK to feel bad," he says. "It's better to feel bad than to let FOMO to drive you to do something stupid.
Naturally, that thinking can be very dangerous when dealing with a highly volatile asset. Just ask anyone who recently bought Haliey Welch'sIt pays, then, to have a process that allows you to make informed decisions around your more speculative trades, rather than emotionally-driven ones, says Nadler. Consider the following framework.The first step is ignoring the sorts of things that may tempt you to make a risky trade, like posts on social media.
Once you realize you're speculating, think about what, realistically, you're willing to risk on an investment that could make you rich or could go to zero very quickly.