Get to know the Crypto Fear And Greed Index, Here's the Explanation!

Trading market crypto cannot be separated from user sentiment, which can affect the price of crypto assets. Ha this is the reason for creating Crypto Fear and Greed Index. 

You know that even if we have made a good investment plan, it can be closed in seconds due to fear or greed of other traders. The reason is, feelings in this market can give rise to different feelings, for example “FOMO“.

Explanation Regarding Fear and Greed Index

The Fear and Greed Index is an index used to measure investor sentiment in the market. This index contains data that can reveal whether the market is bullish or bearish, and is built on two opposing emotions, namely fear and greed.

A report from Investopedia, CNNMoney first created the Fear and Greed Index. This index is used to measure two main factors that affect the market and affect how much investors and consumers are willing to pay for a product.

This index is measured on a daily, weekly, monthly and yearly basis and can be used to determine whether the stock market or other type of investment is reasonably priced.

It is based on the idea that too much fear can cause stock prices to drop, while too much greed will do the opposite.

How the Fear and Greed Index Works in Crypto

The scale of fear and greed in crypto assets ranges from 0 to 100. A low score means there is fear in the market, while a high score indicates greed is rampant.

Extreme fear is defined as a score between 0 and 24, then the level of fear is between 25 and 49. If the indicator is in the range of 50, then it is considered neutral. However, when a level between 51 and 74 indicates that the market is greedy, it turns into extreme greed at scores above 75.

When the index is afraid of extremes, many traders sell at low prices. This situation can be a good buying opportunity.

When you consider extreme fear, FOMO (fear of missing out) can create the best opportunity to make a profit by selling in the market. Therefore, it is important to be careful about using indexes to determine when to sell and buy property.

Also read: How to Make Your Own Crypto Tokens, Easy and Practical!

The Crypto Asset Fear and Greed Index is actually based on the Market Fear and Greed Index created by CNNMoney, and there is a lesson to be learned about the potential pitfalls of profit compared to the buy and hold value.

Please note that the purpose of using this index is to gauge investor sentiment in the market, not to provide buy or sell signals for a specific crypto asset.

The Crypto Fear and Greed Index shouldn't be the only indicator used to draw conclusions about market direction. Remember to do your own research before making a decision to invest or trade crypto assets.

When you understand it, you will be better able to see patterns of price movements in the market. This way, you can trade again with more confidence.

Also read: $VCG Token Listing on Global Exchange BitMart

We also remind you that currently VCGamers has VCG Tokens which you can buy on several DEX platforms such as Indodax and Bitmax.

This token is basically used to support Web3 gaming in Indonesia. Besides that, you can use it as a medium of exchange in Raffi Ahmad's Ranverse.

Get it updating VCG Tokens the latest only on VCNews!