FOMO trading, or “Fear of Missing Out” trading, refers to the emotional practice where investors buy assets, like cryptocurrencies, primarily because they fear missing out on potential gains. This behavior is driven by the excitement and trends in the market, often leading to impulsive decisions.When a particular cryptocurrency starts gaining attention and its price rises rapidly, many traders feel pressured to jump in, worried that they will miss out on significant profits. This can create a cycle where prices are driven higher due to increased demand, further intensifying the fear of missing out among other potential buyers.FOMO trading can lead to volatile price movements, as emotions tend to overshadow rational decision-making. Many traders end up buying at peak prices only to face losses when the market corrects. While some may experience quick gains, relying on FOMO as a strategy is risky and often leads to buying high and selling low. Responsible trading should be based on careful analysis rather than fleeting emotions.