FUD is an abbreviation for English words Fear, Uncertainty, Doubt, translated into Polish as fear, uncertainty, doubt. It is stock market strategy aimed at temporarily discouraging other investors for a given asset. It takes place through spreading negative and often untrue rumors (fake news) or unclear information that is intended to cause investors who sell a given item to sell it and its price will fall. This strategy is found both on traditional markets and on the cryptocurrency market.
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How does FUD work on the cryptocurrency market?
Whales and fatty they may try to use FUD to sell bitcoin more expensive and buy it cheaper. For example, they can sell cryptocurrencies on a local hill and to prevent further price increases that would force them to repurchase more than they sell, they may start to dissolve fake news or rumors that negatively affect the price of bitcoin. For this purpose, articles are bought on popular portals or recognizable people provide interviews that put the future of cryptocurrencies in a negative light. In this way, they disinform and discourage further potential buyers.
If will connect FUD with a massive sale of large amounts of a given cryptocurrencyordinary investors may be frightened and sell their crypto assets in a panic, being uncertain about further increases. In this way, the price falls and enables repurchase cryptocurrency cheaperthan they were sold by those who used FUD.
An example of FUD are rumors and untruthful information about the alleged prohibition of cryptocurrencies in China, problems with Tether, as well releasing negative information from many months ago.