The Fear & Greed Index is used by investors to understand market sentiments. In essence, fear leads to assets being sold at a lesser price than their intrinsic value. Conversely, greed leads to assets being sold at higher prices than their intrinsic value.
Since cycles are imminent in any market, bear and bull markets are observed throughout the price trajectory of any assert.
The bull market leads to rise in prices. Whereas, the bear market means you will see your portfolio dipping.
The red charts may make you panic and try to sell off your assets to mitigate your losses. But even though bear markets can be scary, they do not necessarily mean a loss.
Here are a few tips to help you navigate the bear market:
Besides, you only lose money when you sell the asset at a lower price than what you purchased it for. Hence, do not sell off your assets out of fear, and try to HODL. Unless you are direly in need of cash, do not sell your assets. Eventually, the market cycle would give rise to a bull market. Thereby, you would not only be able to recover what you had invested, but also make profits. It is key to understand that the trend of the crypto market is up over the long term.