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TechPlanet * QnA * Tags * Authors * Write * Sign In MASTERING THE FEAR AND GREED INDEX: A COMPREHENSIVE GUIDE TO USING IT EFFECTIVELY Tech Planet Author 5 minutes ago Follow The crypto market is volatile and influenced by users' sentiments and emotions. Users' behaviour pushes up and down prices, sometimes making crypto assets overpriced and underpriced. Knowing current market sentiment helps to understand current trends better and make predictions. * Should you buy or sell? * Is it a good time to enter or better to exit? * How may the price change? The Crypto Fear and Greed Index indicates current market sentiment and users' behaviour and helps to answer those questions. WHAT IS CRYPTO FEAR AND GREED INDEX? The Crypto Fear and Greed Index measures market sentiment. It is a scale from 0 to 100. 1 means crypto users are extremely fearful about the market and sell their assets to bear minimum losses. Conversely, 100 indicates extreme greed market sentiment and crypto users buying assets forced by fear of missing out (FOMO). HOW CRYPTO FEAR AND GREED INDEX CALCULATED? The Crypto Fear and Greed Index is a comprehensive measure regarding various factors to ensure accuracy. The index considers the crypto market volatility and momentum and volume of the Bitcoin market, comparing the 30-day and 90-day averages. It measures Bitcoin's market dominance, representing the users' approach towards altcoins. Higher Bitcoin dominance demonstrates the fear sentiment and low confidence in altcoins, while lower Bitcoin dominance is a sign that users are optimistic about the crypto market and buy altcoins. Moreover, the index pays attention to social media as the crypto market depends on social media buzz. The index measures Bitcoin's mentions and hashtags on social media and compares them with average values. And finally, the index conducts weekly surveys and studies the crypto users' vision of the market and tracks Google Trends. HOW TO USE CRYPTO FEAR AND GREED INDEX? As with any other index or indicator, the Crypto Fear and Greed Index is reasonable to use along with other metrics and charts to get more accurate insights. Generally, you can use the index to: * gauge the crypto market sentiment; * measure Bitcoin sentiment; * determine investor's mood; * indicate buying and selling opportunities; * pick exit and entry times. HOW TO READ CRYPTO FEAR AND GREED INDEX The scale represents several market states: * 0-24 — extreme fear; * 25-49 — fear; * 50-74 — greed; * 75-100 — extreme greed. An extreme greed state means crypto users are optimistic about the market because of growing prices. They actively buy altcoins declining BTC market share, and the growing demand leads prices to rise even more. In this state, you shouldn't enter the market, and better to exit and sell since the market is due for a correction and, moving in the cycle, will go down. On the opposite, extreme fear shows low confidence in the crypto market. Users prefer to hold Bitcoin and sell altcoins. The fear drops prices and forces even more fear sentiment. When prices are exceptionally down, it is a perfect time to enter the market and buy assets waiting for the ending of the crypto winter and raising your investments. IN CONCLUSION The Crypto Fear and Greed Index is useful for short-period predictions as it shows current sentiment and helps make decisions and correct strategies. In a long-term game, predicting future changes with the index's help would be complicated. CRYPTO BLOCKCHAIN CRYPTOCURRENCY BITCOIN ETHEREUM NFT ETH BTC DEFI In case you have found a mistake in the text, please send a message to the author by selecting the mistake and pressing Ctrl-Enter. 0 Share * * * * * * 69 * 0 DECODING THE CRYPTO MARKET: UNDERSTANDING THE SIGNIFICANCE OF BTC AND ETH DOMINANCES Tech Planet Author 21 July · 497 ETHEREUM VS LITECOIN COMPARISON GUIDE Alex 21 July 2022 · 77 · 2 CRYPTO NEWS: IS THE BULL MARKET BACK? BITCOIN VS ETHEREUM PRICE Den W. 31 July 2021 · 85 COMMENTS (0) NO COMMENTS YET You must be logged in to comment. Sign In / Sign Up CRYPTO NEWS: BUY STOCKS WITH BITCOIN, DEFI TOKENS HIT EOS, CANADIAN DOLLAR MOVES TO ALGORAND Jacob Enderson 12 December 2020 · 55 CRYPTO NEWS: BITCOIN FUD, ETHEREUM ATH, & STAKING CRYPTO Alex 24 January 2021 · 188 · 4 CRYPTO NEWS: TESLA, MASTERCARD, BNY MELLON AND MIAMI GOES IN ON CRYPTO, BNB SMART CHAIN TAKES ON ETH Jacob Enderson 13 February 2021 · 90 WHAT IS CRYPTOCURRENCY AND HOW IT WORKS? Alex 12 December 2022 · 94 · 3 THE EVOLUTION OF DEFI PROTOCOLS: FROM EARLY INNOVATIONS TO PRESENT-DAY APPLICATIONS Prolitus Technologies 01 May · 51 · 1 CRYPTO NEWS: BITCOIN FLIPS VISA AND MASTERCARD, POLKADOT FLIPS BITCOIN CASH Den W. 02 January 2021 · 143 TechPlanet Follow us * QnA * Tags * Authors * Write * Contact * About * Recently Published * Recent comments * Terms of Service * Privacy Policy * Podcasts Online * Radios online * TheAmberPost