FUD is a concept that involves certain psychological tactics and manipulations designed to promote profitable information, which is not always reliable and truthful, to correlate the value of a particular asset.

To competently develop in investing and trading, especially in the highly volatile cryptocurrency market, you must be prepared to constantly analyze the situation and apply truly competent strategies and solutions. In this case, such an indicator as FUD must be considered.

History of FUD

The strategy itself is not unique exclusively to the cryptocurrency market. In fact, it was created and successfully used since the beginning of the 20th century in such areas as advertising and marketing. The essence of the FUD task is to promote a specific project or neutralize all the advantages of competitors.

Practical application of FUD in crypto

All digital coins are highly volatile assets, the value of which is determined solely by the proportions of commercial supply and demand. This is the reason for the frequent changes in the value of different currencies. Information with certain propaganda is launched through the media to promote a specific asset and make traders and investors want to buy or sell a specific digital coin quickly. As a result, if market participants are influenced and take all inside information on faith, FUD customers receive enormous profits, and private traders and investors experience serious drawdowns. The emotional background facilitates this, also referred to as an index of fear and greed. By skillfully manipulating investors' emotions, it is possible to achieve positive results.

To reduce the risks of drawdown precisely for this reason, it is always necessary to diversify risks and competently conduct market analysis, considering the influence of market whales through the media.