What is the Fear and Greed Index? And why does it matter in trading?
The Fear & Greed Index is a tool that measures market sentiment towards cryptocurrencies.
It reflects the psychological state of traders, ranging from 0 to 100.
🔴 When the index is low (0–25):
It means that the market is in a state of extreme fear, and there may be buying opportunities.
🟢 When it is high (75–100):
It means that the market is in a state of excessive greed, and sudden price corrections may occur.
📊 The index is calculated based on data such as:
– Market volatility
– Trading volume
– Survey results
– Search trends
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✅ Summary:
Do not just follow your emotions! Use the Fear and Greed Index to understand market mood and make more rational decisions.
📌 In the next lesson: What are Stablecoins? And why are they used?
