In the industry, there are two key terms that traders focus on almost as much as the value of crypto itself. The first is FEAR and the second is GREED. We’ll cover more on these two terms to help you to better understand how to trade as efficiently as possible, and it’s worth noting that before you start, you might want to take a look at the StockGeist.ai platform – making it must easier to navigate the harsh climate of crypto trading. In fact, you can find out more here before we dive in.
Let’s dive in
So, what is Fear in regard to crypto traders? It’s fairly straightforward, really. Consider that the market has suddenly shifted, leaving investors fearful of the consequences. This is known as the Fear Factor. The more afraid they are, the more likely they will be to sell. These types of investors won’t often have researched well if they are in a position of fear – but that’s where your research comes into play.
If the market seems fearful, with traders rapidly trying to sell their crypto, sit back and consider cashing in or using the aforementioned tool to get to grips with the potential for losses or profits. If, on the other side of the coin, traders become Greedy, this means that they see the potential for profit. A good tool will help you to identify the crypto market based on Fear and Greed as key factors. Emotional reactions are common among traders and so if you see Fear, snap up a deal. If you see Greed, take advantage of their desire as the cost of crypto will likely go up. On the other side of the coin, Greed can occur when crypto prices drop down – and so, in this case, it’s best to wait for those that are fearful to have their assets snapped up by the Greedy, and wait for your opportunity to turn an even greater profit.
Final thoughts
Before trading on a whim, always use a tool that can help you to evaluate market trends and trader behaviour, including Fear and Greed. With this technique in your arsenal, you’ll go from beginner to veteran in no time at all.
