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Understanding FUD

Fear, Uncertainty & Doubt (FUD) is a propaganda tactic used in sales, marketing, public relations, politics, polling and cults. Wikipedia defines FUD as a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear. The term FUD is also used in the crypto industry to denote the factors that can affect how traders perceive the market. FUD in crypto describes the feeling of unease and hesitation that comes with making investment decisions in an emerging and often volatile market. FUD often arises through various factors such as rumours, media, speculations, misinformation, negative news, regulatory interference or market trends. With FUD comes an avenue for people to either jump on opportunities, take a risk, or win or lose in the long run. FUD often has adverse effects on the market, especially on investors. Like the stock market, once investors in the crypto market develop some sort of FUD, they tend to not invest in the market which causes a lesser demand to trade crypto, failed projects and most times a drop in the price of coins and assets. Advantages of FUD Builds Motivation: A general sense of FUD can often build motivation among parties in the market. It can push people to create projects and solutions to problems that otherwise not have noticed when the market is not volatile. Creates Opportunities: It’s also a great way to create opportunities. For example, when high-ranking coins are assets depreciating, it often becomes an opportunity for low-ranking assets to grow and increase in popularity. Disadvantages of FUD Used for Manipulation: Some people take advantage of FUD to manipulate others within the market by taking advantage of the situation to present solutions that won’t help them solve inherent problems. Disrupts the market: Typically when more people develop FUD, the market becomes disrupted. Misinformation begins to spread and that leads to some level of distrust in the market. Traders might often withdraw or sell all their assets and that creates additional tension in the market. What to do when FUD arises

For an avid trader, facing FUD is inevitable. The most important thing to do is not panic. Do not panic sell or panic buy. Do your research and due diligence properly before investing or buying. Don’t make biased decisions but be objective. Also, consider it a great opportunity to learn more about the industry as it grows.

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