Using Social Media for Useful Crypto Trading Signals

The past ten years have seen social media grow into a giant that is difficult to ignore. From business to sole financial advisors, social media is becoming a significant avenue for trading tips. In the third quarter of 2021 to 2022, approx 3 billion people accessed Facebook within a month. Of this number, several of them are active traders. Meta, the company that runs Facebook and Instagram, had over 3 billion active users in the same quarter.

Twitter ranks high in the number of active monthly visitors. The company has about 397 million monthly visitors that can prove valuable in the trading game. Telegram has set itself apart as a home for traders who want to learn how to short crypto in PrimeXBT and all kinds of other tradable instruments. The company enjoys a total user base that almost doubles that of Twitter, making it a must-have for trading signals seekers.

Things to Consider Before Trusting Social Media for Trading Signals?

• Fraudsters

Many consumer reports have published highlights that paint social media as a haven for fraudsters. The fraud presents itself in the form of ads, messages, or a post that locks in the victim once they follow links or get into a conversation with the promoters. Estimates show that up to $770 million is lost yearly to fraud in social media alone.

Before jumping on any signal issued, it is important to carry out some background checks on people giving the signals.

• Fake Gurus

Fake trading gurus have plagued social media pages with their misleading expert advice. Some gurus use the tactic to gain an audience for monetization on platforms like YouTube. Others create a voice for products and services they subtly advertise. Fake gurus do not have any experience, and their signals arise from false speculation, which often leads to heavy losses when used.

Spotting Scams and Fake Trading Gurus Easily on Social Media

Scammers and fake gurus reinvent themselves every day, beating the algorithms meant to stop them. Their dynamic tactics make them hard to catch, even by the use of human moderators.

Too good to be true narratives in social media often have evil intent; those looking for trading signals should turn away whenever they pop up. Signals promising quick returns are one way to catch a fake trading guru. An overly positive message that screams high returns in every sentence is a signal that the peddler is a scammer.

Sketchy profiles are signs of scammers. Profiles asking for down payments or initial investment in social media without legit proof of returns are a sign of scammers.

How to Spot a Good Trading Signal in Social Media

Blue ticks or verification badges issued on social media platforms for legit people are a start when looking for trading information. Legit traders with years of experience do not hide behind a fake mask on social media.
Ads from a legit trading platform are a nice way to find legit trading signals and information. Many trading platforms have a strong presence on social media. The social pages moderated by the platforms have a series of blogs that explain different instruments on offer, and legit ways to take a position to earn returns.

Financial news sites such as coin-base have a strong presence on social media. The sites present a good avenue to get the correct signals that help enter various trading positions.

Noteworthy, not all information presented on social media by unverified persons is fake. However, before indulging in any unverified signal, it is imperative to do further research via a Google search in legit places before making a trading move.

Adaptation and Leverage

The world is evolving fast, and social media is providing a platform for traders to interact and score big in various trading positions using PrimeXBT. However, many social media sites have become home to fraudsters and fake gurus. Budding traders must know how to pick out the frauds, to avoid becoming prey.