Many crypto investors have two modes: “This coin is going to zero” and “I’m retiring next month.” There’s rarely an in-between.
These emotional extremes can create opportunities for patient investors willing to swim against the current. That’s why I keep an eye on CoinMarketCap’s Crypto Fear and Greed Index.
It won’t tell me what to buy or when, but it does tell me when the crowd is losing its collective mind in one direction or the other. Taking action on its signals is an exercise in statistics and mass psychology.
Image source: Getty Images.
What the index measures
The Fear and Greed Index runs from 0 (everyone is panicking) to 100 (everyone is ordering chicken tenders). It’s a proprietary data model that includes metrics such as…
