If you are searching for information about cryptocurrencies, you hardly find news in the classical media. The best — and sadly to say — the only source information you can get about Cryptocurrencies is from Social Media. There are a plethora of social media groups, YouTube channels and web pages.
The great think of getting information in that way that information is mostly independent. You can read different opinions from many writers. They must not be necessarily independent, but the huge amount of information makes it more difficult to build a single leading option. You can choose a bundle of information and make your own picture.
But why do classical media no writing more about cryptocurrencies?
There could be several reasons for that. First of all cryptocurrencies associated with high risk factors. It is seen more as speculation without fundamental background.
Also there is a lack of understanding. Cryptocurrencies are a bit mystic since you can’t use it in the daily world. People search for easy things in life and they don’t want to take the time to understand cryptocurrencies and don’t care about the topic. Although cryptocurrencies have many advantages like you can pay small amounts by tipping and it is independent. People are still very skeptical with the usage of cryptocurrencies.
There is also a lack of government recognition. They try to ignore it and don’t put too much attention into the topic. On the one side they are very skeptical and not sure if it should be banned or not. An example is the cryptocurrency Diem from Meta. On pressure from regulators the cryptocurrency was stopped and cryptocurrencies are forbidden in some countries.
But the backside of the coin is, that information is often biased dependent of the platform. This comes on the one side that the content creators are very exited and overconfident about this topic. On the other side the creators need to earn money, since social media is lack of paid media services, and so they are often sponsored. Medium can be an exception because some writers are paid by the number of followers and readers of their articles.
Another Risk is, since writers in social media have not much experience in professional writing, the content is often written badly and of poor quality. They don’t research the information carefully and could have bad conclusion. The even worst case is that writers could spread misinformation intentionally. But this is not only the case, if someone want to spread too optimistic information about cryptocurrencies, it is also the case if some ist too pessimistic about the topic.
The conclusion is that you must see both sides of the story. Read much and from different authors with different point of views and you have to make your own opinion. That is often challenging, but learn to think and questioning things.
You also have to concentrate on you own targets and questions. For example if you are searching for good trading strategies, than it doesn’t make sense to read about other topics, but you should read articles with authors who are successful in trading strategies ant authors who are not convinced about the and make your own picture. Social Media is also very distracting and you easily could be diverted by other topics.
If you want to research for good news, you have to look for authors with high credibility.
Are there some no goes for news about cryptocurrencies?
If you find some price predictions then you have to be skeptical. It is nearly impossible to make an exact price hit and if it happens, then it is mostly luck. Another case is that is said that the price is will be above or below the actual price. Thats a good guess but this is a 50% chance that you are right. Rather you have to look for factors that are possible reasons that the crypto price will go up or down. Then you can search for these — economic or behavioral — factors.
There are also some „glamorous“ headers which say „someone has made 100 Mio in cryptos“. That is possible and there are some people who reach that. But you have to look behind the story. Whether it is vey hard to copy the strategy or they had much luck and was at the right place at the right time. But the main reason of such headers is to elicit you to the story. Never less one point for that is that better think big and reach a litte goal than to do nothing. But keep in mind that’s a story that could you guide to a target and also motivates you on the way to your goal.
Simple justification for price changes often sounds too good to be true. There is no simple answer to the question why the prices are changing rather it is a komplex system of different decision makers (traders). The market unpredictable over- oder under reacts events. Some market events also already priced in so that nothing happens. If the happening is very surprising then the news can have huge price impacts.
The fourth point is, you have to take care that assumptions are often written as a fact. Examples here are that Bitcoin is only for tech people or Bitcoin is only used by criminals. Part of that could be true but it assumes a certain kind of situation, wich is not really the case. This point also fits the the point before. Simple justification are mostly assumptions. The world is not black and white.
Social media brought us a new way of collecting information and cryptocurrencies is a challenging topic, you can get quick information with a minimum amount of time. So keep on reading and learning.