Bitcoin is a digital currency that is completely virtual. In simple words, it is like online cash, and there are no physical forms. By using bitcoin, it is possible for the trader to buy products and services. Many businesses have already started to accept bitcoin payments. Each bitcoin is stored in a digital wallet, and you can send or receive bitcoins. All the transactions are recorded in a public ledger known to be the blockchain. There are several ways that you can get bitcoin. It is possible for you to buy bitcoins using real money or with the process of mining you could gain bitcoins for free.
Now, trading bitcoin common among people and to check how others are feeling about the market the fear greed index bitcoinis used. The investor sentiment gives you an idea of how to act. If others are greedy, then you should be fearful. On contrary, if other investors are fearful, then you should greedy. There are a lot of websites that analyze emotions and sentiment every day from different sources and display you with a single number.
When it comes to the crypto market, human psychology is similar in certain conditions. People tend to get greedy when the market is rising and fear when the price is falling. With the fear greed index bitcoin, you could save yourself from the over-emotional reactions from the investors. Usually, the index is analyzing using different sources. Some of the common factors include the following:
- Market Momentum
- Social Media
The above are few factors that are used to create the bitcoin fear and greed index. Each data is visualized carefully every day to gives an accurate change in sentiment. With the help of this index, you could easily decide whether to buy or hold the values. Choose the most trustable source to check the index and consider whether it updates every day. The best website will give you detailed information on how to read the chart. Learn the values and predict the overall sentiment of the market before investing.