Investors should use discussions about cryptocurrencies on social media platforms like Twitter, Reddit, and Facebook as metrics to measure the performance of a cryptocurrency.
Social media has always played an integral role when it comes to cryptocurrencies.. These platforms have helped developers, innovators, and changemakers build a community to support the growing movement.
Therefore, investors should consider social volume and track these metrics.. While this may seem difficult, online tools like Solume and Cryptometrics make it easy.
Why is social volume an important metric to track?
Social volume is great for investors because of the impact of social media on cryptocurrencies. a metric. Even in their early days, cryptocurrencies have always had a strong connection with online forums and social media platforms.
In 2008, Satoshi Nakamoto introduced the concept of Bitcoin and Blockchain technology to the P2P Foundation, Linux Foundation, Bitcointalk.org and even the P2P Foundation. Leveraged Twitter.
Measuring social volume
Various online tools are available for cryptocurrency traders to measure social volume. It can be said that the most functional of them is Solume.. So here we will give a few examples from Solume. Websites allow traders to see the correlation between the number of social media posts and its price in USD or BTC.
Here is a social map of Monero over the past 7 days:
Solume also offers other options that include comparing the price of cryptocurrencies with shares from different sources.. These resources include Reddit, Twitter, and Bitcointalk.org.
Investors can also assess their level of sentiment associated with cryptocurrencies.. As seen below, high negative social volume often has a direct impact on the price of cryptocurrencies.
Social media platforms will continue to play an important role in the development of the cryptocurrency community.. Therefore, it would be wise for investors to take advantage of social volumes when evaluating cryptocurrencies.
Source: BTCManager