Are You One of the 84% Who've Made Crypto Decisions Due to FOMO? Go Beyond the Fear of Missing Out and Build a Balanced Portfolio With These Tips.

Investors often regret fear-based decisions

It's a common response, especially in the speculative and volatile world of cryptocurrencies, where assets can rally significantly in a matter of days

Unfortunately, FOMO-based choices often lead to regret

Almost two-thirds of the crypto holders surveyed said those emotional decisions had hit their portfolios hard

FOMO can cause people to buy a cryptocurrency shortly before it hits an all-time high and then lose money when the price drops

It can also mean buying into pump-and-dump schemes that play on people's emotions

Here are four tips you can to avoid letting fear cloud your judgment

And re some more Another crypto acronym is DYOR -- do your own re

Don't take other people's word for it -- dig into the details of any ject before you make the decision to buy

Cryptocurrencies don't have balance sheets and regulatory reporting systems, but there's still a lot of information you can use

Read the white paper: This document should tell you what the ject hopes to achieve, how the nology works, who's involved, and more

If you're looking for long-term value, real-world utility and security are key considerations

Understand how coins and tokens are issued: Pay attention to how many coins or tokens the ject will mint -- particularly whether there's a capped or unlimited supply

This can have a big impact on value

Look at the coins' distribution, any vesting (where coins are gradually released to stakeholders), and whether a small number of people own a large portion of the total supply

Check out the leadership: Look for teams with solid crypto experience and knowledge

The number of developers involved in the ject can also be a good sign

Look at the market cap and liquidity: Cryptocurrencies with higher market caps may be more established and can carry less risk

Trading volume can be a good indicator of liquidity as it shows there are a lot of people buying and selling

Re is one of the best antidotes to FOMO because it helps you make a decision that's based on information rather than emotion

Image source: Getty Images

Be why you're making an investment Think how this purchase fits in with your investment strategy and your finances, and be aware of emotional drivers

If you're feeling anxious or worried that you have to buy before the price changes dramatically, this may be a sign you're to FOMO in or out of an asset

Similarly, if you're using money you need in the short term to buy crypto, take it as a FOMO warning sign

You might even write down your investment thesis so that you can come back to it in the future

Keep your other investments in mind and be aware of how much exposure you have to risky assets crypto, compared with other assets, such as stocks, bonds, and real estate

Consider dollar-cost-averaging -- making regular investments at set intervals, rather than a lump sum -- to even out short-term volatility

This can help if a crypto is rapidly gaining in value and you're worried it might peak and fall again

It's also good to ask yourself what you hope the coin or token will be worth in five years' time

The emotionally charged and fast-paced nature of social media platforms can fuel FOMO

You might get ideas from social media, but use other sources to verify what you find

Try to think who's posting and what their agenda might be

That's particularly true on social media but also the case for, and other investment information sources

Take a beat There are many great long-term investment opportunities out there, and it's almost impossible to time the market and buy at the lowest point

If it's a good investment today, it should still be a good investment in a week or a month after you've had time to think it

For example, let's say you wanted to invest in Bitcoin a few years ago

The price is rising quickly, and you're scared it's going to the moon without you

It feels expensive, but you go ahead and buy because you've done your re and believe this is a solid long-term investment

And if Bitcoin continues to gain, the different entry points will become even less important

You can take FOMO out of your crypto investments There are several strategies to reduce FOMO in your investments, but the biggest one is awareness

If you catch yourself thinking you have to buy something today or miss out, that's a sign your emotions may be in the driver's seat

It happens all too easily in the heady world of crypto, so try to counter that sense of panic by imagining how you'd feel if you lost everything you're to invest

Emma Newbery has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Bitcoin

The Motley Fool has a disclosure policy.