With the rise of cryptocurrencies came many expressions and acronyms that can be hard to understand for the neophyte.
That’s why in this article we are going to explain the meaning of the FUD expression.
What is FUD and what does it stands for?
FUD is the abberivation of: Fear, uncertainty, and doubt.
It is used to describes propaganda techniques used in sales, marketing, public relations, finance, crypto, politics, surveys and cults.
FUD is indeed a strategy for influencing perception by spreading negative, dubious, or false information, often as an expression of an appeal to fear.
In the 1990’s the term FUD was generalized to all types of disinformation used as a competitive weapon.
What does FUD mean in crypto?
Many crypto enthusiasts use FUD to describe those who reject Bitcoin and crypto.
Moreover, when it comes to stocks and crypto, the acronym FUD is also a reference to those who push fear, uncertainty and doubt in the direction of a particular coin or company.
Thus FUD is a psychological trick which is used to spread doubt and fear, which causes certain coins to lose value.
Indeed, FUD causes the price of a coin to fall not because of fundamentals or charts, but because of bad news circulating on social media platforms.
Why some people are using FUD to attack a cryptocurrency or coin?
People spread FUD because they know that certain investment investors are receptive to it.
A crypto investor who buys a coin but does not see himself as a seller in the foreseeable future is referred to as the hodler of the cryptocurrency.
But not all investors are holders.
Indeed, by spreading this feeling of fear, some manipulators are trying to instill fear into weak investors in order to push them to sell their crypto.
Hence, pushing the prices down.
Last but not least, some even take short positions on a coin because they believe its value will fall in the future.
Thus, don’t be surprised if some investors spread FUD in order to manipulate prices.
How to protect yourself against FUD?
The best defense against FUD is to research, plan, and hold for the long term.
Indeed, if you approach your investments with a long-term attitude, you will avoid short-term fear and volatility.
That’s why so many people recommend the HODL strategy in the finance and crypto communities.
We hope this article has helped clarify what FUD means in the stock market and crypto world.