Have you ever heard the term “FUD?” If you’re into crypto, then you’ve definitely come across this acronym before. But what does it mean? And more importantly, how can you avoid it?
In this article, we will explore FUD and its effects on the crypto community. We will also provide some tips on how to protect yourself from FUDsters!
What is FUD in crypto?
FUD stands for “Fear, Uncertainty, and Doubt.” For example, if you’re worried about the future of Bitcoin (BTC) or other cryptocurrencies then FUDsters might try convincing you that it’s going down in value so they can get your crypto at a lower price.
Why do crypto traders use FUD?
The crypto space is full of fear uncertainty and doubt (FUD). It’s easy to spread misinformation on social media platforms such as Twitter or Reddit where there are no editors checking facts before publishing content online – which means anyone can post anything they want without repercussion.
This type of behavior can have a significant impact on the crypto market, leading to price fluctuations and even panic selling.
As the Bitcoin community has grown and the market has expanded with thousands of different crypto assets, the profitability to spread FUD has increased. The goal is to make people that HODL “hold on for dear life” to sell. These people are known to have paper hands. Once they have sold, positive news may be released and it could lead to a higher price of that specific cryptocurrency.
How can you protect yourself from FUD?
Here are some tips for avoiding FUD:
- Do your own research! Don’t just believe what you read online – make sure to check the facts before making any decisions.
- Be skeptical of anyone who is trying to convince you to sell your crypto.
- Stay calm and don’t panic sell! If you have a long-term investment strategy, then stick to it.
- Use common sense – if something sounds too good to be true, it probably is.
- Avoid trading and looking at day to day news. Stick to being an investor that looks for long term growth and fundamentally sound assets.
What is the different between FUD and negative news?
FUD is crypto slang that some crypto enthusiasts spread about a particular coin to acquire the digital assets at a lower dollar value. Some investors try to spread doubt or bad news that is manufactured on a specific coin and then use this to acquire coins at a lower price or to short the market and make a profit from it declining.
Negative news is not necessarily FUD. Labelling everything that is bad about a coin FUD can lead to some delusional crypto investors. For example if an exchange is hacked, this could lead to the cryptocurrency market dropping drastically. This is not FUD, it’s just factual bad news.
What are some common cases of manufactured Fear, uncertainty and doubt?
There have been many cases of FUD crypto news and other social media tactics to manipulate the price, some common ones are:
- China banning Bitcoin every few months
- People paying writers/journalists from popular news sources to release bad news
- Reddit threads and social media posts about a coin being bad
- Influencers being paid to say a cryptocurrency coin is bad