Alternate.me generates a new number ranging from 0 to 100 every day. Previously, it only used Bitcoin-related data. This is due to Bitcoin's strong price and mood correlation with the crypto market. They also intend to include major cryptocurrencies such as Ether and BNB.

The scale of the index is split into the following categories:
When the index score is between 0 and 24, it shows extreme fear and is emphasized in orange.
When the index ranges from 25 to 49, the market is great fear and is colored amber or yellow.
When the index is between 50 and 74, it denotes greed and is denoted by light green color.
Finally, a market score of 75 to 100 indicates extreme greed and is commonly denoted by the color green.

The Fear and Greed Index is a market sentiment tool that gauges the emotions driving investors' fear or greed. It operates on a scale from 0 to 100, where lower values indicate fear, suggesting bearish sentiment and higher values reflect greed, signalling bullish optimism.

The index typically incorporates several factors, such as volatility, market momentum, stock price strength, trading volume, and safe-haven demand. For example, high volatility and declining stock prices signify fear, while rising momentum and increased demand for high-risk assets indicate greed.

Investors use this index to identify potential market reversals. Extreme fear often correlates with undervalued assets, presenting buying opportunities, while extreme greed might signify overvaluation and the risk of a market correction. It's a valuable psychological market barometer.