The Fear & Greed Index is a number from 0 to 100 measuring the overall sentiment of the crypto market.
The scale
- 0-24 → Extreme Fear
- 25-49 → Fear
- 50 → Neutral
- 51-74 → Greed
- 75-100 → Extreme Greed
How to use it
Historically:
- Extreme fear often coincides with cycle bottoms (contrarian opportunity)
- Extreme greed often coincides with local tops (FOMO warning)
But it's not predictive. It's a thermometer, not a crystal ball.
For each profile
- 🌱 Beginner: use it only to avoid entering in red zones (extreme greed)
- 📈 Trader: combine with volume and momentum, don't trade on this alone
- 💎 Holder: ignore short-term spikes, watch monthly trends
What NOT to do
❌ Buy everything when it says "Extreme Greed"
❌ Sell everything when it says "Extreme Fear"
❌ Make big decisions based on this number alone