As a Crypto Trader Pro, your goal is to take advantage of the market swings; buying and selling your crypto tokens in the hopes of making large profits. While we’re far from those Lambo dreams again, HODLers are using market trend tools, but they are also using social media crypto analysis.
It’s arguable that social media like Twitter, Facebook, and YouTube are for the younger generations simply because it’s the Gen Xers who were teenagers and young adults when social media launched.
You might be wondering what social media has to do with anything.
Social media data often guides the ideas phase of cryptocurrency analysis, to better help us gauge where the general market direction is going.
In this post, we’ll look into social media platforms used in the crypto space.
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Analyzing cryptocurrency and blockchain related tweets can influence cryptocurrency trends and potentially the price and interest of a token.
Crypto evangelist, programmer, and investor John McAfee may have inadvertently endorsed Verge (XVG) in a tweet on December 13 ’17 when he mentioned privacy coins like Monero (XMR), Verge (XVG), or Zcash (ZEC) could not lose in the race for mainstream adoption.
Subsequently, those tokens had a two-week price rally following that tweet.
Reddit hosts a global audience of cryptocurrency and tech enthusiast. This platform can be a wealth of information or a last resort for crypto shillers and shysters. The best thing to do is follow specific subReddits that are tailored to your specific needs.
Oftentimes, Bitcoin and Altcoin news is posted on Reddit before it hits other mainstream media outlets.
Here are some of our favorite subReddits:
/r/CryptoCurrency – With 884K followers, there’s bound to be a lot of noise – and a lot of opportunity.
/r/btc – This subReddit supports open discussions about BTC and has 253K followers.
/r/CryptoCurrencyTrading – Like its name suggests, this subReddit supports dialogue for all cryptocurrency.It has well over 50K followers.
Telegram
Hailed as one of the first places for development teams to communicate with the public, Telegram, has a fast-paced chat environment, or has the ability to be informational, depending on the room setting.
This is a popular destination for finding airdrops, news about specific projects you’re researching, and interacting directly with project team members. This can be a great benefit when you’re researching the next digital asset to add to your portfolio – or which ones you might consider selling.
Did you know that Facebook had 2.38 billion monthly active users in 2018? That is a lot of eyeballs, which is why it’s a crypto project team’s goal to launch ad campaigns and get their marketing strategy in place.
While Facebook has had it’s share of bad press, it’s hard to argue with 2.38 billion users per month, and there is trade influence there. There are many public and private groups, business pages, and influencers on this platform. If you don’t think that has an impact on some of your decision-making, you might be fooling yourself.
Final Thoughts
You cannot believe everything you see on the internet. Influencers come in all kinds of variety; some are self-engineered and others are recognized as an authority on a given subject. Their voice (or tweet or video or mention) can make or break a market trend. The trick is to balance what you see with real market analysis to make the best choice when you trade.
Social media influence coupled with raw data could potentially give you better predictive results, but never use it by itself. Technical price action patterns for gate-keeping and other resources are available to make smart decisions. I wonder what Vitalik Buterin has to say…
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