Mommin It Mondays episode November 29th 2021

Hi amigos, It is time to catch up with our Mommin' It Mondays episode. This one was recorded on November 29th before the most recent market correction. Check out what was brewing then and if you get a chance come join us for our weekly Monday's Live which take place on Lisa's channel at 2:00 PM PST time. Live can be joined in via my Twitter account as well. Join the fun and do not hesitate to ask questions too and give your 2 satoshis about the topics we are discussing too. The community is very open and alive check it out! All my best Michelle M www.mammycrypto.com Social Media links:  https://cointr.ee/mammycrypto   

Bitcoin Fear and Greed Index - Measuring Crypto Sentiment

Image created using Canva

Fear and Greed are the two human emotions driving financial markets. According to Warren Buffet a successful investor must "be fearful when others are greedy and greedy when others are fearful." Overall market sentiment can be a great indicator for Bitcoin investors if you know how or where to read it.

One great tool that I use to gage the current and passed crypto market sentiment is the Crypto Fear and Greed Index, by Alternative.me. The Crypto Fear and Greed Index is a trusted web site used by credible news sources such as Forbes and Cointelegraph. Many refer to the Crypto Fear and Greed Index to measure the general market sentiment towards Bitcoin. 


Let's Check Today's Market Sentiment


Latest Crypto Fear & Greed Index

How to read the meter score:  0 means "Extreme Fear" while 100 means "Extreme Greed"

Why it is important to measure Fear and Greed according to Fear and Greed Index:

"The crypto market behavior is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out). Also, people often sell their coins in irrational reaction of seeing red numbers. With our Fear and Greed Index, we try to save you from your own emotional overreactions. There are two simple assumptions:
  • Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
  • When Investors are getting too greedy, that means the market is due for a correction."
How often does the index gets the score updated? 

The site updates the Fear and Greed Index score every 24 hours and showcases a timer for the next update. A feature that is very important when reading the daily score, specially on high volatility days of Bitcoin as investors must check measurement and price and time of measurement to get a better sense of accuracy. 




Does it offer historical data?

The site also show cases passed scores as far as 2 years, which are great to be used for reference and research.




What data sources does it use to come up with the score?

Crypto Fear and Greed index uses a many data sources and crunch them all into one score. The score is build upon 6 meaningful data points with different levels of significance. Here is the 6 data points used and the percentage they weight in the score.

1. Volatility 25%
2. Market Momentum/ Volume 25%
3. Social Media 15%
4. Surveys 15%
5. Dominance 10%
6. Trends 10%

Each explained in more detail on the Alternative.me web site

In conclusion, I often visit Fear and Greed Index not only to understand and measure the market sentiment but also get a clear understanding of my own. Before an impulse buy or sell I tend to stop a little and analyze the market from various points of view and the Fear and Greed Index is just one of the many tools I use. It is important to know that The Fear and Greed Index is not financial advice, it is simply a tool that measuring passed data. Nobody has a crystal ball and investing in cryptocurrencies is quite risky and it is important to do conduct your own research and/or consult a financial adviser.

by: Michelle M
MamãeCrypto
www.mammycrypto.com
Shopcryptopopup.myshopify.com



Comments

BACK TO HOMEPAGE

Popular Posts

What is the Wide Renascence all about?

Cripto Notícias com a MamãeCrypto Resumão 7

Odysee Livestreams available for everyone

Mommin It Mondays episode November 15th 2021

Disclaimer

My opinions are simply my opinions and not investment advice. I strongly recommend everyone investing or looking to earn or acquire cryptocurrencies to do their own research and get very educated about risks and security before acquiring, earning or investing. The content in this blog/ website is not investment advice. Please note that this web site also features sponsored content and referral affiliate links. Which means that when you click on some links and sign up for a product or service I may receive I small commission or credit for the referral. Most the the links also will give you an invite incentive that most often you would not receive if you do not use a referral invite link.

www.mammycrypto.com

MamaeCrypto Headline Animator