What do you do when you fall in love with a friend?

What do people do when they find themselves in this situation? I know most people would say, why don't you just tell him how you feel. Well, I won't do that because I'm afraid of humiliating myself, and him as well. There are times when I'm sure it is just me that has these feelings but there are times when I think the things he says and the way he acts are not the way people who are "just friends" behave.

I have been hurt in the past, as most have, and I have taken a long time for myself to figure out what I want and he is the first person that I've felt this way about in a long time. If I say something then I run the risk of feeling like such a fool, and how do you come back from that? But if I don't, I'll have to fake a smile while I shake the hand of his new girlfriend. Or maybe I should just stop being his friend and try and move on. What to do?