We all know what the FOMO (Fear Of Missing Out) is, but most of us don't know how to react when it happens. Let's take a concrete case. BNB surged today by more than 8%. What are the possible options?
1) You can wait for a correction and buy the dip. You just need to be patient, it will correct tomorrow, next week or next month, but it will correct for sure.
2) You can short it once it seems to be at the top. It is quite risky. However, you can do it cautiously, by putting only small amounts without any leverage.
3) You can try to understand the reason and check the other cryptos which could surge due to the same reasons - e.g., UNI because BNB surge would be due to the launch of Uniswap on BNB chain?... Or some other cryptos which could easily be traded or invested into pools against BNB through Uniswap?
Personally, I decided to short BNB at $330, which means that I bet on the fact that there will be a correction after this nice pump. As mentioned, it is quite risky, but, if it continues to pump, it will mean the whole crypto market will pump and I will lose less than what I will earn on some other trades.
Trading is not only buying, it is also shorting. You can earn money when it goes down. Please be cautious with leverage, you do not need it for crypto.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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