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Home/Glossary/Herd mentality
Psychology

Herd mentality

Also called: herd behavior

In shortFollowing what the crowd does instead of your own analysis.

Herding drives bubbles and crashes alike. When everyone you know is talking about the same coin, it is usually late in the move.

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Related terms

  • FOMO (fear of missing out)The anxious urge to buy because everyone else seems to be making money.
  • Fear & Greed IndexA score from 0 (extreme fear) to 100 (extreme greed) that summarizes crypto market sentiment.
  • WAGMI / NGMI"We're all gonna make it" (optimism) and "not gonna make it" (said of a bad decision).

More in Psychology

  • Anchoring bias
  • Confirmation bias
  • Illusion of control
  • Loss aversion
  • Narrative fallacy
  • Overconfidence bias
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