We all have emotions that help us go through life, and they are an essential part of who we are as individuals and can help us navigate various situations. However, these emotions can be detrimental when it comes to cryptocurrency trading. One of these is Fear of Missing Out(FOMO), which happens when the market experiences high price fluctuations leading to an emotional call when trading instead of a technical one. When this happens, the investor might either sell too soon and lose the profits or buy very late, and prices tank. It could lead to portfolio damage and high losses over a long period due to impulse decision-making when a digital asset experiences extreme price swings. We shall look into the best indicator for crypto trading to help you when going through FOMO to decide on his article; Fear & Greed Index The Fear and Greed Index is a sentiment analysis tool that generates a number between 1 and 100 and can be used as a crypto FOMO indicator. It uses social media activity, Google trends, Bitcoin dominance, polling, volatility, and the trading volume to develop the index. Investors tend to get greedy when the market rises, leading to FOMO. It is reflected in the fear that they might not be able to take advantage of the market’s opportunities. Hence, the index reads a higher number. On the other hand, when traders are more concerned with possible trend reversals, the Fear and Greed Index shows extreme fear. The score o...
