As BTC continues its bearish trend, trading below $86,000, the fear-greed index recorded 11, indicating that extreme fear stage continues.
The fear-greed index is a representative indicator that numerically shows the investment sentiment across the cryptocurrency market, reflecting not just simple price movements but the psychological state of market participants as a whole.
Some people may not know what the fear-greed index is. Today, let's take a look at what the fear-greed index is and what can be learned from it. Additionally, I will also explain how to register while receiving a 20% discount on Binance fees.
What is the Fear-Greed Index?
The index is calculated by combining price volatility, changes in trading volume, market momentum, Bitcoin dominance, and social media reactions, and a lower number is interpreted as a stronger fear sentiment.
Generally, the fear-greed index ranges from 0 to 100, where the range of 0 to 24 is classified as extreme fear, 25 to 49 as fear, around 50 as neutral, and above 75 as greed or extreme greed.
The current period, where the index remains in single digits or the low teens, indicates that investors are focusing on risk aversion, meaning a higher proportion are choosing to cash out or remain on the sidelines rather than buy. This leads to a decrease in trading volume, creating an environment where prices react sensitively even to small sell orders.
However, an extreme fear period does not always mean additional declines. Historical cases show that during such periods, short-term volatility increases, but at the same time, there have been cases where the market enters an oversold state and technical rebounds occur. Especially when the index plummets solely due to psychological contraction without clear negative news, the market tends to show movements to find balance at certain levels.
Therefore, the fear-greed index is more appropriately used as a reference indicator to assess the degree of psychological pressure the current market is under, rather than a simple buy/sell signal.
Reasons to Use Binance
Currently, the domestic investment market is regrettably noted for its difficulty in employing diverse response strategies during periods of rapid rises and falls. As a result, more people seeking a freer trading environment are increasingly turning their eyes to overseas exchanges.
Domestic exchanges have no way to generate profits during downturns. However, overseas exchanges allow for not only spot trading but also futures trading and margin trading. The ability to target profits in both directions, with long positions in bull markets and short positions in bear markets, is a significant attraction. Additionally, leveraging can maximize capital efficiency, enabling more aggressive trading strategies.
Among them, Binance is the world's largest exchange boasting the number one trading volume. It is a comprehensive virtual asset platform that offers overwhelming liquidity, a wide variety of altcoin listings, a stable server environment and security system, as well as various financial products such as spot trading, futures trading, staking, and launchpad.
The speed of trade execution is fast, and slippage is low, making it highly useful for everything from short-term trades to long-term investments. That's why many people are eager to learn about how to sign up for the Binance exchange.
Reasons for Registering a Binance Referral
However, it is not without disadvantages. If there is a downside to overseas exchanges, it is the burden of futures trading fees and funding fees. Especially for those who frequently trade or use leverage, accumulated fees can become a larger burden than expected. Hence, many people actively utilize fee discounts or referral codes to reduce cost burdens.
The first thing to check before signing up for the Binance exchange is the initial fee-saving structure. If you miss out on discount elements that are only applicable at the time of registration, it will be difficult to apply them later, so it is essential to check thoroughly in advance.
🎄Go to get the Binance fee 20% discount benefit
Not only new subscribers but also existing subscribers can receive a 20% discount on fees if they meet the following five conditions.
The invited person already has a registered account on Binance.
The invited person has never accepted an invitation before.
The invited person has not traded or used any products on the Binance platform in the past 180 days with their account.
When the eligible inviter opens the link and logs in, a confirmation window will appear.
When the inviter clicks [Bind Now], the binding takes effect.
How to Sign Up for Binance
The process of signing up for the Binance exchange is not particularly difficult. Creating an account with an email or phone number completes basic registration. After that, KYC certification must be conducted for trading and deposits/withdrawals. Once the identity verification and facial recognition processes are completed, approval typically occurs within a few minutes.
In South Korea, due to travel rule regulations, normal deposits and withdrawals can only be made after certification with the same information as domestic exchanges. Once this process is completed, various features such as spot trading, futures trading, and copy trading can be used without restrictions.
Especially for beginners who are encountering futures trading for the first time, it is advisable to set leverage conservatively. Using a high multiplier from the beginning can quickly lead to liquidation risks due to small fluctuations, so it is necessary to start with lower leverage, such as 3x or 4x, and become accustomed to the platform environment. You should not only think about quick profits. Losses can occur just as quickly and cannot be reversed.
Using an overseas exchange does not simply end with creating an account. The profit structure changes depending on what settings are made after registration. By accurately understanding the process of signing up for the Binance exchange and completing the KYC certification, you can trade in a much more pleasant and efficient environment.
If you set up properly from the beginning, you can significantly reduce unnecessary costs. This will greatly help improve real returns in the long term. For those looking to broaden their investment experience, now may be the right time to systematically prepare for overseas exchanges, and with sufficient preparation, more opportunities can be created.
Lastly, please don't forget to take the Binance fee 20% discount link!