"In the high-stakes crypto landscape, volatility is more than a market characteristic; it is a psychological battleground, filled with euphoric highs and crushing lows. In this environment, every moment feels like a rollercoaster, fuelled by fear, hope and hype, and while some investors thrive, not all do; in fact, they may end up burning out because they react emotionally to price dips."
"FOMO and FUD are the invisible forces that dominate the market and override rational analysis, leading to substantial losses. Is there a way to stop this cycle of emotional whiplash? Luckily, yes. The fear and greed index is a simple yet powerful tool to gauge market sentiment and bring clarity, even in turbulent conditions, because it allows investors to take a step back and base their decisions on perspective rather than panicking and letting emotions cloud their judgment."
Volatility in crypto creates a psychological battleground of euphoric highs and crushing lows that can burn out investors who react emotionally to price dips. Invisible forces like FOMO and FUD often override rational analysis and lead to substantial losses. Human psychology, including cognitive biases and emotions such as greed, fear, and overconfidence, distorts investment choices and causes premature selling. The pain of losing money is 2.5 times stronger than the pleasure of gaining it, which explains why many investors exit positions early. The fear and greed index measures market sentiment and provides perspective to counteract panic-driven decisions.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]