How does the psychology of "Fear of Missing Out" (FOMO) dominate your decision-making?

Whenever you see friends celebrating on social media, investors reporting huge gains, or limited-time offers flashing across your screen, do you immediately feel a surge of urgency? This “must act now or regret it later” mentality is driven by what’s known as FOMO (Fear Of Missing Out). FOMO is not just simple social anxiety; it has evolved into a powerful psychological force that influences human decision-making—from consumer purchases to investment strategies—everywhere.

FOMO isn’t just social anxiety; it’s controlling your brain

The phenomenon of fearing missing out was first introduced by marketing strategist Dan Herman in the early 21st century. But the explosive growth of FOMO truly took off with the rise of social media platforms like Facebook, Instagram, and Twitter. These platforms are designed to constantly push notifications, update feeds, and showcase others’ highlights, prompting users to compare their lives with others—and this comparison often ends in anxiety.

Every notification, every post with the most likes, subtly signals to users: “Something is happening, and you might be missing out.” Over time, this barrage of signals causes the human brain to habitually seek confirmation—Am I falling behind? Did I miss an opportunity? FOMO thus shifted from a psychological phenomenon to an emotion tool carefully amplified by tech companies.

From investment decisions to daily shopping, FOMO is everywhere

In financial markets, FOMO’s impact can be deadly. During the 2017 cryptocurrency frenzy, countless investors saw screenshots of others’ massive profits and rushed into the market, even without understanding the basics. When the market corrected, these FOMO-driven investors suffered heavy losses—too late to turn back.

Similar stories played out during the stock market volatility of 2020’s pandemic. In daily life, FOMO also secretly manipulates consumer behavior. E-commerce platforms’ “24-hour flash sales,” luxury brands’ “exclusive releases,” and new game “early access periods”—all are designed to deliberately trigger the fear of missing out, pushing consumers to make quick decisions often without considering their actual needs.

How platforms and companies design “traps” to trigger your FOMO

Tech companies and app developers have long turned FOMO into a business model. Push notifications are essentially creating a sense of urgency, prompting users to open apps immediately. Limited-time offers, exclusive discounts, new product launches—these marketing tactics all aim to make consumers feel: If I don’t act now, this opportunity will disappear forever.

In cryptocurrency exchanges, this design is even more obvious. Real-time market updates, new coin listings, exclusive trading competitions—these constantly stimulate users’ decision-making nerves. Bombarded with messages, users often make impulsive trades driven by FOMO—buying soaring tokens or chasing assets that have already doubled in value. These decisions rarely involve rational analysis and often end in losses.

Businesses are well aware of this, so they create more “experiential” products and services, leveraging scarcity and uniqueness to convince consumers: “This is a moment I can’t miss.” As a result, markets driven by FOMO become increasingly volatile, especially in emerging markets and tech sectors.

Recognize FOMO and learn to make rational decisions

Understanding how FOMO works is the first step to combating it. When you’re considering whether to buy something or invest in an asset, ask yourself: Is this based on genuine need or just fear of missing out? If I didn’t see this deal, would I still want it? Do I truly understand what I’m investing in?

FOMO isn’t entirely negative. It can motivate people to stay informed, engage actively in society, and even drive innovation. But the problem arises when FOMO controls your decisions, leading to irrational spending, investment losses, or disrupting your life rhythm.

For consumers and investors, the key is cultivating awareness: recognizing when FOMO is influencing your choices, and evaluating the real value and risks of the opportunities you pursue. This doesn’t mean ignoring new opportunities or market trends, but rather finding a balance between impulsiveness and rationality. Slow down, make well-considered decisions—these often lead to better long-term outcomes than rushing to follow the crowd.