Panic Buying is a situation where the price of a crypto asset increases dramatically in a short period of time. The factors that cause a “Panic Buy” are not always predictable, but it usually happens instantly around the world. When the price increases dramatically, more and more traders will be affected by this situation and buy crypto assets, so that the price increases can reach a point where traders are saturated to buy and start taking profits by selling at high prices. When your transactions are based on FOMO, you stop thinking logically, even though the price movements mostly look logical. You miss setups and rely on the uncertain expectation of the price going up or down.

Moreover, if you are lucky enough and make some good transactions, you even consider the FOMO approach effective. So, you do not read the indicators at all, or you read them enough so that they show what you want to see. One indicator is never enough: you always have to research the market again. Another bad thing about Panic Buying is that there is no place for risk management, which is very important for professional investors. Therefore, as a trader you should avoid panic buying.