Impact of Social Media in Cryptocurrency (Part 1)
Social media is widely known and considered as one of the most important influential organizations or sectors in today's world. Nowadays almost all of us are engaged with social media in some way. There is no country in this world where people are not using social media extensively. Some countries are using crypto more and some are less. A news story on social media can be an important influencing factor for a country or for people around the world.
So any news on social media has a lot of influence in any sector nowadays. Accurate information can make a post as well as a wrong or misleading fabricated information can create a bad impact through social media. The cryptocurrency sector is one sector where social media is of immense importance as market ups and downs are controlled to a large extent based on any news on social media.
Many times in the past we have seen big changes in the market through small events on social media. As you know, the price of any token in the crypto market depends on the demand and supply, that is, how many people are currently trading in the market or showing interest in trading. Just as we see in the secondary share market, a company's shares rise a lot based on people's interests. It is an important factor among many factors.
Thus, social media has a very important impact on the crypto sector and I will be sharing some posts with you on this subject. I will try to share with you the important impacts in the light of past statistics and experiences so that you can understand the basic relationship between social media and trading. We can understand how social media can influence this market in detail through examples and previous data. I will explain it so that you can understand it easily.
In today's post, I just gave some basic ideas that social media has an important impact on the trading sector along with the crypto sector. Especially when the price of the token in the market is based only on the interest of the traders, any news can have a significant impact. As we all know about Dogecoin price change through a tweet from Elon Musk. There are many such topics that I will continue to discuss in future posts. Since this topic is very important and very comprehensive, I will introduce it to you in a series.
~ Regards,
VEIGO (Community Mod)
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@tipu curate
Nicely written and I totally agree with it that social media greatly impacts the cryptocurrency market depending on the kind of news as most times Fuds are being spread in the social media platform which negatively affects the price of an asset.