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Home/Glossary/Anchoring bias
Psychology

Anchoring bias

Also called: anchoring

In shortRelying too heavily on the first number you saw, such as your buy price or a coin's all-time high.

"It was $4, so $1 is cheap" is anchoring. The market doesn't know or care what you paid.

Read more on Cryptensive

  • Anchoring bias
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Related terms

  • All-time high (ATH)The highest price an asset has ever reached; the opposite is the all-time low (ATL).
  • Bagholder (bags)Someone left holding a coin that has fallen a lot, often hoping it will return to their buy price.
  • Loss aversionThe tendency to feel losses about twice as strongly as gains of the same size.

More in Psychology

  • Confirmation bias
  • FOMO (fear of missing out)
  • Herd mentality
  • Illusion of control
  • Narrative fallacy
  • Overconfidence bias
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