FUD is well-known both in the crypto world and in investing in general. In this article, we discuss what FUD means and how it can affect the minds of crypto investors. Namely, FUD can increase anxiety, panic and spread fear in the crypto world, so FUD can be used to manipulate the exchange rates of cryptocurrencies as well as the movements of crypto investors.
Fear, uncertainty and doubt (often shortened to FUD) is a manipulative propaganda tactic used in sales, marketing, public relations, politics, polling and cults.
By creating fear, uncertainty and doubt, it is easier for big players to guide consumers and investors in buying and selling decisions. With the help of FUD, it is possible to get holders to sell their crypto in a panic, even though the original intention was to holler for a long time.
FUD is often initiated by a larger entity, the mainstream media, or nowadays also by influential public figures who may perceive cryptocurrencies as a threat or want to benefit from the influence of FUD in the market. Such entities can be, among others, central banks, heads of state or even bankers. They can increase FUD with coverage through the mainstream media they control. When mainstream media releases these cryptocurrency-related news, they can have a big impact on cryptocurrency rates and people’s opinions towards crypto.
You might think that these headlines appear in the media almost every day, and yes, they do! The more you can read them, the hotter the crypto market and certain cryptocurrencies are. This kind of news can be used to influence investors mentally and increase FUD, i.e. fear, uncertainty and doubt in the crypto world.
Of course, there can be truth and pure facts behind the news, and sometimes a touch of fact has been included in them and the rest of the news is something completely different. Sometimes these news have no basis at all and their purpose is only to spread lies or a certain thought pattern related to some crypto.
In order for you to know where to go, it is very important to stick to your own investment plan and, above all, dig up the facts on your own; is there any substance to the news or is it to increase FUD?
Musk-controlled Bitcoin and Dogecoin
A good example of FUD is also Elon Musk and his recent tweets. Musk’s tweets had a big impact on Bitcoin and Dogecoin rates and were able to influence crypto investors. Musk only tweeted the word ” Bitcoin ” and the price went up. When Musk’s tweets later turned negative towards Bitcoin, fear struck investors and many sold their Bitcoin holdings in a panic.
The same happened with Dogecoin. Dogecoin doesn’t technically have any promising features or future expectations, but it got into a real frenzy with Musk and other celebrities’ social media updates. The rate fell and rose as it happened. Crypto investors could be influenced through social media updates. Few actually knew anything about Dogecoin and its technology and development. We went solely on the basis of “to the moon” updates and pressed the buy and sell button.
How the crypto world reacts to all these news and social media updates affects what happens in the crypto market. The market is influenced by external big parties and the things they report, but at the same time also by the inner circle of the crypto world and news, discussion boards and social media updates.
- Always check the sources of news or social media updates.
- Find out if the news is true?
- Does it make sense?
- Where does the news come from?
- Is there a big party behind it that benefits from the news?
By doing this, you increase your knowledge and you can avoid selling your cryptos in a panic, which you might regret later.
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