“How should I act? I feel scared to buy in the current market 😨 Everything is falling.”
First, you need to realize that you are not alone. The entire market is experiencing the same emotions. This is what influences prices and causes them to move in certain directions.
People tend to become greedy when the market goes up, which leads to FOMO (fear of missing out). Similarly, people often sell their coins irrationally when they see assets dropping in value.
A more complex formula takes everything into account - the “Fear and Greed Index.”
The “Fear and Greed Index” is designed to alleviate emotional stress for users. It analyzes the current market sentiment, represented as a simple number from 0 (extreme fear) to 100 (extreme greed).
• Extreme Fear: Results from a persistent and severe market decline. It can be a sign that investors are overly concerned. As we know, when everyone is scared, it’s a good opportunity to buy assets.
• Extreme Greed: Results from a strong and continuous market rise, indicating a necessary correction. Hence, when everyone around you is greedy, it’s a good time to sell.
Use this index wisely and do not succumb to emotions!
