Glossary
Fear and Greed Index
A sentiment gauge that scores overall crypto market mood on a scale from extreme fear to extreme greed, distilling several market signals into a single number. It is meant as a snapshot of emotion, not a price forecast.
The close-up. A Fear and Greed Index blends several observable inputs — such as price momentum, volatility, trading volume, and social or search activity — into one composite reading. That reading is placed on a scale running from "extreme fear" at the low end to "extreme greed" at the high end. Crypto versions are typically dominated by the largest assets, so the number often tracks the mood around major coins more than the long tail. Different providers weight their inputs differently, which means two indices can disagree on the same day.
The wide shot. The concept borrows from traditional markets, where the idea is that emotion tends to swing between panic and euphoria. In crypto, high fear is often read as a sign that participants are cautious, while high greed suggests broad enthusiasm. Because it summarizes sentiment rather than fundamentals, the index describes how the crowd feels, not what an asset is worth.
How to use it. Treat the reading as one lens among many, alongside on-chain data, volatility, and market capitalization. It is a contextual indicator, not a signal to buy or sell, and it says nothing about any individual project. Sentiment can stay stretched in either direction for a long time. For a live snapshot, see the market tools, and always do your own research.