Hello! Familiar situation when emotions drive you to buy $BTC at the peak and then panic-sell at the bottom? One of the best tools to avoid this is the Fear and Greed Index.
What is it?
This is an indicator that measures market sentiment. It shows the state of investors: in panic (fear) or in euphoria (greed).
* 🟢 "Fear" or "Extreme Fear" (Fear) — this is when the market is in panic. It may be a good time to consider buying when others are afraid.
* 🔴 "Greed" or "Extreme Greed" (Greed) — this is when the market is at the peak of euphoria. It may be a good time to consider taking profits.
How to use it?
The index is not a signal to buy or sell! It is more of a tool that helps you not to succumb to the crowd's emotions. If the index shows "Extreme Greed", it might be wise to be cautious. And in the case of "Extreme Fear" — do not panic, but assess the situation.
Tip: Stay calm when others lose their heads.
Do you use the Fear and Greed Index in your strategy? Share below 👇
