Every trader knows this feeling. Crypto prices are soaring, the market is buzzing, the newsflow is bullish — and you’re still on the sidelines. Then the thought hits you: “If I don’t buy now, I’ll miss my chance to profit!”
This article explores how FOMO affects crypto traders and how to keep your emotions under control. The topic is explained by Dasha Ozden — a trader since 2019, investor, and international expert in digital assets, specializing in private investments and financial independence. She is the author of a comprehensive crypto trading program that teaches beginners safe, profitable, psychology-aware trading strategies.
What FOMO Is and Why It's Dangerous
FOMO — “fear of missing out” — is a psychological trap that pushes traders to make rushed decisions that often lead to losses.
FOMO typically appears when a trader sees a rapid price increase and fears missing the opportunity. Under emotional pressure, traders often:
- •Buy an asset without proper analysis
- •Invest most — or even all — of their capital
- •Skip stop-loss orders and violate basic risk-management
The outcome is almost always the same: the market corrects, the price drops, and the trader takes a loss.
Example:
Imagine a major cryptocurrency surges sharply within a short period. Social media is filled with profit screenshots, traders discuss rapid gains, and you start feeling the urge to “buy before it’s too late.”
If you enter during this emotional peak — without proper analysis or a stop-loss — even a small market correction can lead to immediate and significant losses.
Scientific Evidence: How FOMO Impacts Crypto Investors
According to the 2025 study “The Psychology of Cryptocurrency Trading: Risk and Protective Factors” (Y. Li et al., Journal of Behavioral Addictions):
- •Traders affected by FOMO executed 35–40% more impulsive trades compared to emotionally stable participants.
- •FOMO strongly correlates with sensitivity to social media, news, and market sentiment.
- •Participants with lower financial literacy were more likely to trade without analysis.
- •Improving financial literacy and following a predefined strategy reduced FOMO’s influence by 25–30%.
These findings align with the practical experience of Dasha Ozden: emotional reactions to price spikes often lead to peak-buying and avoidable losses.
Real-World Examples of FOMO in Crypto
Market-Wide Rallies
During sharp market upswings, traders often chase rapidly growing assets without analysis, leading to losses once the market cools down.
Political-Narrative Tokens
After major political events in the U.S., narrative-based tokens have surged dramatically — only to crash soon after. Traders who bought at the top faced prolonged drawdowns or complete liquidation.
FOMO Beyond Crypto: Stocks, Real Estate, Startups
FOMO is not exclusive to crypto. It appears across different investment classes:
- •Stocks: Sudden spikes after earnings or partnerships push investors to buy at irrational highs.
- •Real estate: During market booms, buyers rush into overpriced properties fearing they’ll miss the opportunity.
- •Startups: Investors jump into hyped startups without due diligence, later suffering losses when valuations correct.
Dasha Ozden emphasizes this topic heavily in her training program: understanding psychological traps and sticking to a strategy is key to long-term profitability.
How to Avoid FOMO: Recommendations from Dasha Ozden
Stick to Your Strategy
Create a clear trading plan — and follow it.
Enter Based on Analysis, Not Emotion
Use confirmations and technical signals before opening trades.
Respect Risk Management
Set stop-loss levels and avoid overexposure.
Never Make Emotional Decisions
Fear of missing out should never be a reason to enter a position.
Wait for a Correction or Pullback
If the asset has already pumped, a correction often provides a safer entry.
Emotional Management Practices to Reduce FOMO and Anxiety
Below are two practical techniques that Dasha Ozden personally uses and recommends to traders. These methods help stabilize your emotional state and prevent impulsive trades.
Box Breathing (4–4–4–4)
Use when:
- •You feel anxious
- •You’re tense before a trade
- •You feel the urge to “buy while it’s going up”
How to perform:
- Relax your body: drop your tongue from the roof of your mouth and exhale fully.
- Inhale for 4 seconds.
- Hold for 4 seconds.
- Exhale for 4 seconds.
- Hold again for 4 seconds.
Repeat 10–15 cycles.
Effect: calms the nervous system, reduces cortisol, improves clarity and decision-making before entering a trade.
“Working with Fear” Technique
Use when:
- •You fear losses
- •You panic before opening a trade
- •You feel emotionally blocked
Step-by-step:
Start with Breathing
Do 1–2 minutes of box breathing to release tension.
Locate Fear in Your Body
Identify where it sits — chest, stomach, head, hands.
Understand the Cause
Ask yourself:
- •What exactly am I afraid of?
- •Is this risk real or exaggerated?
- •Am I following my risk-management rules?
Remove the Fear Visually
Imagine the fear as an object and “remove” it: melt it, dissolve it, burn it with light.
Fill the Space with Calm
Inhale soft pink light into your body, exhale remaining tension.
Return to Balance
Recognize that your body is calm and the threat is gone. Only then return to analysis and trading.
Use these practices anytime you feel emotional pressure or anxiety before entering a trade.
Stories from Dasha Ozden and her students show that with the right support and structured approach, traders can achieve impressive results — from stable earnings to financial independence, new opportunities, and personal projects. Her programs help students build confidence, strengthen discipline, and gain full control over their financial decisions.