Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Ultimate Crypto Resource Guide
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cRYPTO Glossary

Explore essential terms and concepts in the world of cryptocurrency, blockchain, and trading

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Anchoring and Adjustment

Anchoring is the psychological phenomenon of having a preconceived idea or reference point (the "anchor") and adjusting your decision-making or judgments around that initial reference.

Explanation of Specific Terms:

  • Preconceived idea or reference point: The anchor can be a number, value, or piece of information that influences subsequent judgments or decisions.
  • Psychological phenomenon: Describes how individuals tend to rely heavily on the first piece of information they receive (the anchor) when making decisions, even if that information is arbitrary or irrelevant.

Key Points for Beginners:

  • Why it's important: Understanding anchoring helps individuals recognize biases in decision-making and strive for more objective judgments.
  • How it works: In financial markets, for example, the initial price of a stock (the anchor) can influence how investors perceive its value, even as new information becomes available.

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