The importance of reliable news sources in crypto trading

Staying up to date on the latest news, whether it’s through the news channel, newspaper, or twitter is essential to being aware of the world around you. Knowing what’s happening in the world we live in holds high importance because it influences a decent percentage of the decisions we make on a daily basis. For example, running late for work? An update on the traffic will surely influence your route to work. Whether it’s an update on crime, traffic notifications, or laws being put into effect.

Knowing and staying up to date with current information helps up navigate through life being more well-informed. Well, now that’s understood in a different context, apply that same logic to cryptocurrency.

How would I know? Why should I care?

The ever-growing use of cryptocurrency has yet to cease and desist. Therefore, the continuous advancement in technology continues to allow more individuals, companies, and businesses to use cryptocurrency to trade with the goal of making a handsome return. Cryptocurrency could be in a position to eventually replace fiat currencies over the years and decades to come. With that being traditional fiat-based bodies have already become heavily reliant on data and the measures that come as a by-product of developing decentralised ledgers — the foundation on which cryptocurrencies are built. On some level, all of us in society use a bank, credit card or both. In turn, we too benefit from everything that comes with cryptocurrency, regardless of whether we intend to use it directly. This means that remaining up-to-date with information regarding cryptocurrency will help you to stay informed about the security precautions that how your funds are protected and secured.

Let’s take it a step further, keeping up to date with the news in cryptocurrency means staying alert and vigilant in a market that is by nature driven by sentiment — not statistics. Most cryptocurrency users may be aware of the inconsistencies within the value, but still take the risk regardless of following a gut-feeling that was misinformed. Due to this unpredictability, the wrong step under the wrong information can mean the difference between landing large and falling back to square one.

The answer is clear: in an emotionally-charged trading environment, an accurate and constant interpretation of the moods surrounding a cryptocurrency means claiming back control.

Tracking cryptocurrency as a news source?

In the fiat universe, banks and credit card companies are already beginning, or will soon begin, to use this trading platform. Therefore, it only makes sense to begin leveraging tools that already generate insights from social data.

Ultimately, the accuracy of a news source can be a make-or-break tool when it comes to predicting where the market will shift next: unlike the more calculated decisions made by fiat stock traders in response to new information, cryptocurrencies lack this long-standing track record to fall back on; and so erratic purchase behaviour is often the first response to what may appear the next big opportunity.

As investors in cryptocurrency, we need tools that harness the potential value of reputable news-sources, but whilst mitigating the risk of exaggerated news flashes deliberately propagated to manipulate market behaviour. With Daneel, this value is not only extracted into easy-to-interpret insights at the fingertips of every user; but in-fact provides intelligent suggestions that distil complex news trends into suggested decisions.

The news of the future

With fake news a rampant topic since 2016, many cryptocurrency users are wondering the role news sources will play in future decentralized exchanges: a help, or a hindrance?

With Daneel, news sources that may have been avoided by users exploring the opportunity of a cryptocurrency are now re-framed as tools to help.

Has a fake news story been detected? Not to worry: Daneel recognizes the implications, and perhaps the opportunity for another cryptocurrency misleading information may be trying to conceal. But what about a credible news article or the general trend of online discussions surrounding a specific cryptocurrency? Even for a news source that may be exaggerated, Daneel has access to the data to cross-corroborate.

Ultimately, although trading decisions and news sources may come into conflict in the event of deliberate misinformation, the correct analysis provided through a smart assistant such as Daneel provides clarity to the crypto market; enabling you to anticipate its next move.

Stay tuned:

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