FUD: the Crypto-term you need to know in 2021. — Beginner Bitcoin

In the crypto markets, it is not uncommon to see swings in price upwards of 20–30% on the daily charts. Not to mention that retracement and pull-backs are normal and expected in the world of trading cryptocurrency. Volatility is a familiar friend to seasoned crypto-nuts.

All this volatility could mean great gains for the savvy cryptocurrency trader, but most casual retail users can be taken advantage of without understanding this term and its effect on their psyche. Traders are betting that most retail investors (YOU!) will have “weak hands” and sell their Bitcoin when it starts to plummet in price, only to buy back in at the top.

Essentially, FUD is the general sentiment that come from the naysayers about Bitcoin or its value. Sometimes it comes because of negative reports from media sources, major investors and institutions. This type of talk undoubtedly leads to lack of confidence in the cryptocurrency market.

It is even possible that this type of media manipulation is willful to cause a drop in the price in order to shake out the nervous retail investors, while the smart investors are buying and accumulating Bitcoin at a lower level.

This is why it is especially important for all would-be holders of Bitcoin to try their best to understand what they are getting into. Beginner Bitcoin wants to help you do just that: understand the fundamentals that make cryptocurrency valuable.

Knowing what you hold just might help you get through the inevitable pullbacks that come investing in the cryptocurrency world.

There is a strange phenomenon in cryptocurrency-people who don’t understand the fundamentals or believe in the future of Bitcoin are making a dangerous gamble by entering into the market. Many of them are on a speculative frenzy, thinking they can get rich overnight with the click of a button. When the price is high, they feel good about the asset in their digital wallets. This can lead to buying more when the price is good. But all it takes is a little bit of bad news, reading the wrong reddit sub, or catching the wrong comment on facebook for FUD to begin to set in.

Do yourself a favor, get educated on the basics of Bitcoin and blockchain so that you’re not taken advantage of in this market, resist the FUD. If you need help, you can start with our 3 Must-See Resources.

Originally published at https://beginner-bitcoin.com on January 14, 2021.

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