Just like you - yes you who is reading this post, the crypto market also reacts to emotions. When prices are going up, people tend to get greedy in the fear of missing out (FOMO). On the other side, when the market falls, they become fearful. In most of the cases, it is best to do the opposite of what people do.

Which means, when the market is greedy, you sell and when the market is fearful, you buy - well this is not financial advise but just an assumption of how this normally works.

The greed and fear index can be used to assess whether the crypto market is fairly priced or not. This index is used to measure the investors sentiments towards the market.

This index is calculated using 6 qualitative and quantitative measures:

• Volatility (25%): Volatility examines the cryptocurrency's price change of over the previous 30 to 90 days. It is used as a fear indicator.
• Social Media (15%) : Growing public interest in a coin can cause greedy market behavior.
• Market Momentum / Volume (25%) : market's ability to maintain a long term price trend. It measures the greed side of the index.
• Dominance (10%): How much market capitalization bitcoins take up. When bitcoin dominance goes up - it means people are fearful to invest in alternative coins. When the dominance goes down, it means people are feeling safer and greedy to invest in alt coins.
• Trends (10%): High volume of bitcoin related searches indicates a high volume of people with interests. This indicate greed.
• Surveys (15%): Surveys carried out in online platforms to see what individuals are thinking of the market.

You may view the greed and fear index using this link: https://alternative.me/crypto/fear-and-greed-index/