Should I be Greedy When Others are Fearful?

It's normal to be fearful when the market is in a downtrend, but as a wise investor this is the time to be buying. As a crypto trader you should have a strategy on how to deploy your cash. For the sake of dollar cost averaging, don't deploy 100% of your cash at once. Divide the amount into percentages, for example deploying in bits of 25% so that if there is a further dip you'll have a chance to buy more at a cheaper price.

As we can see in the above BTC/USDT chart the price of Bitcoin is in a down trend and more and more opportunities arise to buy Bitcoin cheaper. This is the reason a wise crypto trader always has some cash in hand to deploy when opportunities like these arise.

The worst mistake that new traders in the market make is panic selling when they see prices of their assets dropping. For those who have been in the crypto market for some years, they can agree that for crypto assets with good fundamentals, these small dips end up becoming a tip of the iceberg in the long run.

The vise versa is true "Be fearful when others are greedy." Most retail traders enter the market when prices are rising insanely. But most do not realize they are coming late to the party hence end up being completely flushed out because no market runs in an uptrend forever.

As we can see, the Bitcoin Fear and Greed Index is at 29(Fear) showing people are still fearful to buy. For wise investors who don't chase hypes, this is a real opportunity for them. Extreme fear is always followed by greed in the long term. The Fear and Greed Index is an important tool for crypto investors.

Do your own research before investing in cryptocurrency. Only invest what you can afford to lose.