a new survey by Kraken It found that 63% of US crypto holders believe that emotional decision-making has negatively impacted their portfolios, with fear of missing out (FOMO) and fear, uncertainty and doubt (FUD) playing a role.
The survey, which collected responses from 1,248 crypto investors, found that 84% made decisions based on FOMO and 81% based on FUD. Missing out on a significant price increase emerged as the most important emotional trigger for 60% of participants, compared to 17% who feared missing out on a price cut.
These findings show how sentiment continues to drive trading strategies in the volatile crypto market, especially when crypto becomes a It is increasingly important Part of investors' portfolio
FOMO and FUD
FOMO, the anxiety of missing out on a profitable opportunity, often leads investors to act impulsively, especially during market peaks. The survey found that 58% of crypto holders often make decisions under the influence of FOMO, and 26% occasionally succumb to its influence.
FUD, on the other hand, often causes doubt or panic. However, many respondents admitted that their reactions to these feelings caused them to miss out on long-term opportunities. In fact, 88% of investors said they felt like they missed out on major gains.
Age and gender differences play a role in emotional investment. Investors aged 45-60 were the most likely to feel they missed out on early gains (78%), but were also the most optimistic about the future, with 74% expressing confidence in significant returns ahead.
Gender disparities were also evident, with men reporting more frequent decisions based on FOMO (66%) compared to women (42%). Male investors also expressed more regret, with 70% believing they had missed major gains, compared to 48% of female respondents.
Influence of social media
Social media emerged as a major factor influencing trading behavior.
Among respondents who relied on platforms such as Twitter or Instagram for market insights, 85 percent reported significant portfolio impacts from emotional trading. The rapid flow of information often fuels FOMO and FUD, making it challenging for investors to maintain a rational approach.
Despite the challenges, many investors are turning to strategies designed to reduce impulsive decisions. The survey found that 59% of respondents use dollar cost averaging (DCA), a method that involves regular investments regardless of price fluctuations.
Other tools to consider include automated recurring purchases, custom orders to target specific prices, and AI trading bots to eliminate emotional bias. These strategies help investors focus on long-term goals rather than reacting to short-term market movements.
Despite the prevalence of FOMO and FUD, 84% of respondents Hope to remain Older investors, especially those aged 45 and over, show the highest level of optimism about the future of crypto, with many believing that significant gains are still to come.
