Why you shouldn't buy cryptocurrency when the market is engulfed in greed
Today, the fear and greed index shows 73 out of 100 — this means the market is deep in the 'Greed' zone. At first glance, it may seem like the perfect time to buy. But history tells a different story.
Here's why this is risky:
1. The herd effect: When everyone is buying, the fear of missing out (FOMO) kicks in. This inflates prices to an unrealistic level, often followed by sharp corrections. Look at the chart — after every peak of greed, there is a decline.
2. Buy on fear, sell on greed: This is one of the oldest rules of investing. But many still make mistakes. The key is not in choosing the perfect asset — but in the right timing and composure.
3. History repeats itself: Since mid-2023, clear cycles have become evident — greed is followed by fear and vice versa. Those who bought out of fear often found themselves in profit.
Conclusion: Real opportunities arise when people are afraid, not when everyone is excited. In investing, it's more important to stay calm than to succumb to hype. This is not financial advice.
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