Cryptocurrencies are quite likely one of the most exciting assets to invest in nowadays.
Given it’s extreme volatility, investors both large and small have been flooding into the market, all looking to get their hands on some of that sweet, sweet crypto.
However, as the crypto market is totally unregulated and decentralized, there exists the very real risk of market manipulation, a point proven by Elon Musk’s actions in the earlier part of 2021.
Oftentimes, FOMO (fear of missing out) causes investors to act on fake or inaccurate news which can be extremely costly.
This is why it is absolutely important that crypto investors have access to top-quality, unbiased market news.
So join us as we show you how you can avoid fake crypto news.
- Get your news from reputable sources
As a rule of thumb, you should only get your news from reputable sources with quality journalism.
While the internet has opened up a whole new world for all of us, it has also given nearly everyone a soapbox to stand on.
And the result?
News feeds that get clogged with speculative articles and bombastic headlines with no value whatsoever.
What’s scary is that a gullible individual may end up making the wrong financial decision because of something he/she saw on social media. Thus, causing them potentially hundreds of thousands in losses.
The solution? Find trustworthy crypto news portals, like these here: blog.tezro.com/best-crypto-news-websites/
- Fact check and do your research
The “Tenth man rule” is a concept used by the Israelis in the novel World War Z which states that if nine people agree on a strategy, the tenth person must always question the decision and study all alternatives.
The same approach to critical thinking can be applied to the world of investing.
Let’s say a friend shares an article with you which claims that governments across the world have agreed to ban all cryptocurrencies overnight.
And as a result, you rush off to liquidate all of the cryptocurrencies in your portfolio. But then, it turns out that it was some fake news spread by your friend.
Looking back, what you should have done was confirm the accuracy of that report, check the facts, and come to your own decisions.
- Avoid news reports with an “angle”
Given how divided the world has become in recent years, most media outlets have taken to adding their own personal slant to a news report.
Consequently, what we do get is so-called journalists inserting their own opinions and beliefs into their reporting.
And this can lead to some serious biased reporting – we’re looking at you FOX News and CNN.
So always remember to avoid news outlets that have a tendency to add some kind of “angle” to their reporting.
Biased reporting will make it difficult to get a good look at how things really are. Stick to sites that keep puff pieces to a minimum and just report what’s going on.
- Get your news from multiple sites
Another danger with getting your news from biased news sites is that you run the risk of falling victim to the “echo chamber” effect.
This refers to a situation where a person is stuck in an environment where he/she encounters only news that reinforces their own beliefs. Hence leading to confirmation bias and a lack of objectivity.
This is why it’s important that you get your news from different news sites and sources. From crypto news sites to finance journals, it’s always better to keep an open mind to everything that is going on.
At the end of the day, you may be surprised by how much more objective you end up becoming.
- Don’t rely on social media
Social media is fine for keeping up-to-date with friends and family, but it should never be a source of news.
It has been proven time and time again, that social media algorithms are literally manipulating everything that you see.
And this is the last thing that you want when you’re on the lookout for honest, unbiased news.
As Obi-Wan once said, “”You will never find a more wretched hive of scum and villainy. We must be cautious.”
Trying to avoid fake news in today’s world is nearly impossible but with caution and effort, it is most definitely well worth your time.
And if you’re going to be investing in crypto, that goes for double.