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If you are thinking about trading cryptocurrencies, you have to consider being an active user of some of the social networks. Some people like to distance themselves from social networks because they want to give other important things in life their time. However, as a crypto trader, you have to be active on major social networking platforms. Here are some reasons why.
Ido Fishman says that there is nothing more important than trader sentiment when you are trading. It does not even matter which market you are in – trader sentiment always matters and you have to have a way to know it. In most cases, your trading platforms give you various tools that let you know this particular factor. However, social networks serve as your free tools for knowing the trader sentiment about a particular crypto asset.
Follow the Big Influencers
The biggest celebrities, billionaires, and empire owners have proven to be great influencers in the cryptocurrency market. Think about Elon Musk and Mark Cuban who continue to talk about cryptocurrencies and every tweet they post has a major impact on the price of the asset they are talking about. Their inclination can always help you predict which particular cryptocurrency is about to rise in value. You can then make your trading decision based on that.
Investigate New Cryptocurrencies
According to Ido Fishman, “This particular use of social networks is often underrated but is extremely important.” When you trade a new cryptocurrency, you want to make sure that it is not a scam and the team that has developed it is a real team. Social networks can greatly help you know about the legitimacy of newly launched cryptocurrencies. If a digital currency has just launched and most members of the team behind its creation are not on social media, you can consider it a negative signal and consider many times before you invest in such a crypto.
So, with these simple tips, you can make sure that you trade the right crypto assets at the right time when you can expect some great gains.