FUD

The FUD acronym stands for Fear, Uncertainty, Doubt. You can encounter FUD practically every day in all segments of the crypto world. It refers to a certain tactic where you use negative information to influence the community. With FUD, you can manipulate people to make them start selling their cryptocurrencies, thus dropping their price. This will allow you to buy at lower prices later. Unfortunately, some people who succumb to FUD will sell their cryptocurrencies at a loss. Then FOMO hits them and they buy back at higher prices.

PROs

• If you can control your emotions and have a solid strategy, then you can wait for more investors to sell their cryptocurrencies and buy them at lower price. This will give you the opportunity to multiply your profits well in the future.

CONs

• FUD can completely destroy a project, coin / token, etc. There have been many times in the history of crypto  that FUD buried a project, and that project inevitably failed to regain investors’ trust. When investors flee, the price plummets, and you have to wait for investors to come back if you don't want to sell at a loss. This can take a long time, and during that period your investment is unavailable.

Conclusion

You’re always going to have to deal with some haters causing FUD. It is necessary to be capable of critical thinking, and discerning the fact from the fiction: to study the projects in which you invest, to watch the news regularly and to make your decisions based on an evaluation of the whole situation, rather than a single point of view or based on a single piece of information (or, as can often be the case, misinformation).

From an investor's point of view, FUD can have both negative and positive effects. It is important to follow the main information channels of a given project and not to succumb to emotions (positive or negative).

In the event that a popular negative rumor proves true, investigating and confirming the FUD can also in that event save you, provided you can sell your riskiest cryptocurrencies at a profit or without significant loss.

It is also important to mention not to mistake FUD for asking critical questions about a project; one is an important thing for an investor to do, while the other is a deliberate attempt to spread negative misinformation.

Don't get emotional. If you hear news, rumors, or popularly circulating information related to a project in which you invested, first verify the veracity of the particularly concerning information. Sometimes, a FUD campaign is being deliberately waged by a competitor in order to harm their rivals in the marketplace, so always keep a cool head and never make decisions in the rush of emotions.