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A beginner lesson · Crypto hype

FOMO and FUD: check the claim before you act.

Excitement is not evidence. Neither is fear.

Learn the terms, then practise three questions. No account, purchase or real transaction needed.

Crypto Without Blind Spots · Reviewed

The dinner-table tip

Fictional example: A friend shows Alex an excited group chat: “Everyone’s getting in. A big partnership has been announced. Don’t miss it.”

Alex considers putting in $100 USD, but has not verified the claim or learned what the token does. The useful next step is not predicting tomorrow’s price. It is separating what is known from what is missing.

Watch the example

See Alex’s three questions in a short video, then work through the explanation below at your own pace.

Watch: Crypto FOMO—before you buy, ask these three questions (45 seconds; opens a new tab on YouTube).

Prefer reading? Everything you need for this lesson is on this page.

Two feelings. Neither is evidence.

FOMO

Fear of missing out.

“If I don’t buy now, I’ll be left behind.” Pressure can make unanswered questions feel less important. FOMO does not prove an offer is a scam—or that it suits you.

FCA: recognising hype and FOMO

FUD

Fear, uncertainty and doubt.

People use it for fearful sentiment or to dismiss criticism. “That’s just FUD” is not a fact-check. A worrying report might be wrong, incomplete or an important warning.

Coinbase: terminology reference

Ask three questions

  1. 1. What, exactly, is the claim?

    “This project is huge” is an opinion. “This company announced a partnership on Tuesday” is a claim you can investigate. Find the company, announcement and date.

  2. 2. How might the speaker benefit?

    An influencer may receive payment or referral rewards, or hold the asset. Ask about incentives without assuming dishonesty. A following is not evidence; a disclosed payment is not a stamp of approval.

    FTC: why material connections should be disclosed

  3. 3. What supports it outside the promotion?

    Several accounts repeating one screenshot are not necessarily independent sources. Find the original through a separately verified route. A proposed trial is not a working product; neither guarantees a good investment.

CAUTION · Familiar labels can hide missing answers

Pump-and-dump: misleading promotion or manipulation draws in buyers; those behind the scheme sell into that demand. A price rise alone does not establish fraud. This is a warning pattern, not a strategy to join early. CFTC advisory.

Top ten or “blue chip”: a market-cap ranking compares quoted price multiplied by estimated circulating supply. Our takeaway: size is not a safety score. “Blue chip” is an informal label, not a standardized crypto safety rating. CoinMarketCap’s calculation method.

Try Alex’s three-line check

The claim
A big partnership has been announced.
Evidence so far
A screenshot reposted in the group chat.
Still missing
An independently verified source, its date, and what the arrangement actually involves.

This does not prove the claim is false. It shows why the screenshot is not enough. Even a real partnership would not predict a return.

“I don’t have enough information” is a valid conclusion.

One useful next step

Keep five checks for an unexpected crypto message close by. Read the free checklist online or download the one-page sheet. No email signup required.

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