The Fear & Greed Index is a useful tool for tracking crypto market sentiment, offering insight into whether investors are acting on fear, greed, or logic. While it can’t predict price movements alone, it helps users avoid impulsive decisions and recognize patterns in emotional trading. Most importantly, understanding the index helps users defend against scam tactics that spike during emotional extremes. Security starts with self-awareness — especially in volatile markets.
Q1: What is the purpose of the Fear & Greed Index in crypto?
A1: To measure investor sentiment and emotional extremes
Q2: Which of the following is not a factor in the index?
A2: NFT sales volume
Q3: Why should investors be cautious during times of Extreme Greed?
A3: Scams and emotional decisions are more likely
Q4: What is one limitation of the Fear & Greed Index?
A4: It primarily reflects Bitcoin data and is updated daily
