What is FUD?

FUD stands for "Fear, Uncertainty, and Doubt."

👉FUD is the deliberate spread of negative information or rumors to create fear and uncertainty in the market.

👉It can lead traders and investors to make emotional decisions instead of rational ones.

👉 Let's say there's a popular cryptocurrency, that's been performing well. Suddenly, a rumor starts circulating that a major security flaw has been discovered in the technology.

👉Traders and investors might panic and start selling their ABCcoin holdings, fearing that the flaw will lead to a massive price drop or even the coin becoming worthless.

👉The negative sentiment created by the FUD could cause a temporary price decline, regardless of whether the rumor is true or not.

👉It's crucial to verify information from reliable sources