Greed in the cryptocurrency market is the intense desire of investors to achieve quick profits, which increases when prices rise, driven by the fear of missing out (FOMO).
Its effects:
* Leads to speculative bubbles and unrealistic price increases.
* Increases reckless emotional decisions instead of logical analysis.
* Results in ignoring risk management, exposing investors to significant losses when prices crash.
* Makes the market susceptible to manipulation by big players.
* Sharply increases market volatility.
To confront it:
* Establish a clear strategy and stick to it.
* Resist FOMO and don't buy just because everyone else is.
* Learn and research the projects you invest in.
* Use the fear and greed index to understand market sentiment.
In short, greed may tempt you with quick profits, but it often leads to significant losses if you are not disciplined and aware of its risks.