The Fear and Greed Index is a simple tool that helps you understand the market mood, whether for stocks or cryptocurrencies. It shows whether people are fearful (selling too much) or greedy (buying too much). This can help you decide whether it is a good time to buy, sell or wait.

How does it work?

• From 0 to 49 (Fear): It means the market is fearful. This can be good for those who want to buy, since prices are usually lower.

• From 50 to 100 (Greed): It indicates that people are confident or over-buying. At this time, prices may be too high and ready to fall.

Why is it useful for beginners?

1. Prevents impulsive decisions: It helps you not to buy out of excitement or sell out of panic.

2. Easy to use: It is like a thermometer that shows whether the market is “cold” (cheap) or “hot” (expensive). 3. Complements other analyses: Using it together with tools like the RSI can give you more security when investing.

Where can I follow the Fear and Greed?

You can see the index on simple apps and websites, such as:

• Alternative.me: Shows the index focused on cryptocurrencies.

• CoinMarketCap: In addition to prices and graphs, it also has the updated index.

Quick tip: Fear and Greed is not a rule, but a signal. It helps you get a general idea of ​​the market, but always do more research before making decisions.