Confirmation Bias

Confirmation Bias is a cognitive bias where individuals prioritize information that supports their pre-existing beliefs. This often leads to ignoring or dismissing contradictory evidence, which can skew decision-making processes. In the context of a crypto/fiat exchange, traders might focus on data that supports their investment choices while neglecting data that suggests potential risks. Understanding and mitigating confirmation bias is essential for making balanced, informed decisions, especially in volatile markets. Acknowledging this bias can help traders remain objective and improve their overall strategy and outcomes.