FUD (fear, uncertainty, and doubt) is considered a
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Definition
FUD is a tactic used to manipulate investor emotions and create a negative sentiment about a market or asset. It can involve spreading rumors, false news, or other information to cause panic and lead people to sell assets at a loss.
Examples
For example, short-sellers may use FUD to drive down a stock's price. In the cryptocurrency market, FUD can be used to manipulate prices or to create general skepticism about the asset class.
Consequences
FUD can lead to impulsive decisions that investors may later regret. For example, investors may sell assets when prices drop, only to miss out on a later rebound.
How to protect yourself
Investors can protect themselves from FUD by staying informed, following trustworthy guidance, and taking a measured approach to potential investments.
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