What Is FUD In Crypto?

If you are new to crypto, or maybe you have been dabbling in it for a while, you may have read the word FUD at some point. For those who don’t know, it is a type of ‘technical’ jargon that is commonly used within the crypto community.

FUD, to put it simply, is just an acronym that stands for feeling ‘fear, uncertainty, and doubt’. So whilst it does stand for negativity, where exactly is it used?

What Is FUD In Crypto?

In this article we shall take a look at FUD in more detail, and how you can cope when FUD happens. Plus, we shall take a look at another acronym, HODL, that you might come across too.

So, let’s get to it!

What Does FUD Mean In Crypto?

As stated above, FUD stands for feeling ‘fear, uncertainty, and doubt’. It is usually referred to creating a mindset that is negative, especially when it comes to a particular market.

For example, it can be used to spread negativity that is usually exaggerated when it comes to crypto coins. It can create uncertainty about the future of that particular crypto, causing fear and doubtfulness. 

Once this has been fed to those who invest in crypto in crypto site like FTX, this can then decrease the value of that particular crypto, digital assets, or in worst cases, the whole of the space of that cryptocurrency. 

Whilst there are times when FUD can be backed up, usually it is by people who are just spreading unjustified rumors about certain crypto. The people that do this are referred to as ‘fudders’. 

When Might FUD Happen?

There are many reasons why FUD might happen, however, most of the time it is during times where the claims cannot be proven, there isn’t much truth to anything that has been said, and the claims themselves are overly exaggerated.

Even though that might be the case, let’s take a closer look at why FUD might happen. One of the more simple ways a crypto company might cause FUD is because it just didn’t reach its expected earnings. 

Perhaps it failed to match any of the sales forecasts, or maybe their growth of subscribers was poor. Any of these things, and more, can lead to FUD.

Whilst human influence has a lot to do with FUD, it can also happen due to the natural environment around us. For example, the effects of a hurricane or tsunami, or even a global pandemic.

Despite these, it isn’t uncommon for humans to exaggerate certain things that happen which can influence the fear in people.

This can cause a huge impact, and a lasting one at that, when it comes to cryptocurrency.  

This can cause people to panic buy or sell – so FUD can cause major repercussions for companies. 

Who Are Fudders In The Crypto World?

When you experience FUD, it commonly means that fear, uncertainty and doubt has set in. Those who have spread often exaggerated things about a crypto company are known as Fudders. 

So the next time you read the two things being mentioned, now you will know what they mean. 

How To Cope With FUD?

When crypto traders are having to deal with FUD head on, then there are ways to deal with it. Because it can cause a lot of unwanted stress and problems, the way it is handled can make a huge difference.

So, how do you cope with FUD? Here are some answers:

  • When you are trading, never do it when you are faced with fear. It is much better to have a clear mind to make an informed decision.
  • If you do feel fear, do not panic. Learn some breathing exercises so you can keep your mind clear and your body positive.
  • Self-analyze your habits, and make sure to do it regularly.
  • When trading, always make sure that the goals you set are achievable.
  • Make sure to create a trading log so you know exactly where you have invested.
  • Prior to absolutely anything, make sure your emotions do not factor in any decisions with crypto.
  • Lastly, make sure you have a very diverse portfolio when it comes to trading.

What Does HODL Mean?

Whilst FUD is something you will want to know about, so is the acronym HODL. It stands for ‘hold on to dear life’, yet is actually derived from spelling ‘hold’ wrong.

First coined back in 2013 when a trader under the name of GameKyuubi posted the words ‘I am hodling’ on a forum post on Bitcointalk, along with a big rant on his trading strategy using Bitcoin. 

Because there was a big fallout from this one post – there were a lot of opposing views in the comments – a meme was born. It was mainly down to his rant and the spelling mistake, but that’s the Internet for you!

So When is HODL Even Used?

Whilst not the same as FUD, it is used. In fact, it refers to the HODL strategy where a trader purchases and adds crypto with the full intention of leaving it in their portfolio without selling for months, if not years. 

This is because the coins that are being held are seen as likely to have a lot of growth potential.

So even whilst holding on to these coins, they might still be trading other coins they deem to have less potential for growth.

Before you HODL (they are known as Hoddlers), do your research first. You don’t want to be holding on to coins and then miss selling them at their peak. 

It is unknown what the long-term value of any digital currencies are, so an unforeseen event could dramatically increase or decrease its value, with the latter having the most potential.  

Final Thoughts

When it comes to FUD, you will want to make sure that it hasn’t set in yet. To avoid suffering with fear, uncertainty and doubt, you will always want to make sure that you trade with a clear mind. 

There are several ways you can do this – so breathe in and out slowly before committing to anything.