Fear and greed are psychological factors that influence trading decisions.#BTC #ETH
Fear (or Panic): When there's a negative sentiment in the market, such as a sudden drop in prices or negative news, fear can lead traders to sell their assets hastily, fearing further losses. This can create a selling frenzy and drive prices down even more.
Greed: Conversely, during bullish markets or when prices are rising rapidly, greed can take over. Traders may become overly optimistic and eager to profit, leading to FOMO (fear of missing out). This can result in buying frenzies, causing prices to surge.
Successful trading often involves managing these emotions. Rational decision-making, strategic planning, and risk management are crucial to avoid being swayed solely by fear or greed.
