BE CAREFUL WHAT YOU READ, IT CAN LOSE YOU A LOT OF MONEY!
To the untrained eye, reading crypto news is just reading regular news, there’s information, you consume it without much consideration and move on to the next.
This is a grave MISTAKE
Reading Crypto news should be thought of more like performing surgery, you need to be very precise, only take what is necessary, be wary that cutting (Yes, i’m determined to make this surgery analogy work!) the wrong tissue out can be detrimental, and equip yourself with the right tools. I could try to run some more parallels but I would be forcing it and no one wants that.
What you have to understand about Crypto news and news in general is that there are layers to it, there is the news, the hidden agenda, biases, rivalries, opinions and buried underneath that is, TRUTH. Therefore most of the time, we are taking in polluted information which will lead us to incorrect conclusions and bad investments, ipso facto, the loss of money.
Lesson 1 – DON’T BELIEVE THE HYPE NEWS
Many of many articles are very prone to hyping news, although this is necessary for them to attract readers, otherwise frankly no one would read it, at the same time, you have to be aware of this. When sieving through an article that is hyped, look for ACTUAL finished products, partnerships that have been penned to paper, deals that have been closed. This is because, in the act of hyping, many writers will speak of the future, for example; ‘Company A and Company B are IN TALKS to partner up’, ‘Company A are LOOKING into releasing product A’. You will notice this trend in a plethora of articles, the problem with this is, the hypothetical deal/partnerships will many times be delayed or worse yet, not come into fruition, this could create a ‘Pump and Dump’ effect and damage credibility of a project.
Definition of Pump and Dump – Where the price of a Cryptocurrency sky rockets and shortly after plummets back to the same level and sometimes lower
Lesson 2 – ALWAYS BE A SKEPTIC/CRITIC
Following on from the previous lesson, when reading Crypto News, always have one eyebrow raised, even when a deal has been closed, or a multi MULTI million $ investment has been made, look for further evidence to confirm this, google the companies involved and look for press releases from their respective websites, then lower the eyebrow, just a little.
Look for counter arguments within an article, this increases the credibility of the article and also decreases the likelihood of the writer having a bias. Unfortunately many writers within crypto have strong biases towards the coins that they themselves are holding, although writers are supposed to be neutral, realistically, they all want the projects they have invested in to do well. So this will come out in their work as sometimes unknowingly favoring certain projects and bashing rivaling projects
Lesson 3 – Be aware of the BIAS
Continuing from the previous point, It is HIGHLY unlikely that there is a crypto writer out there that isn’t holding/investing in a crypto project, therefore they will consciously or subconsciously favor their holdings, some will do this more than others. What you must look out for to see whether this bias is affecting the credibility of an article is fair counter arguments, written in a logical format. It should look like the writer has put in a reasonable effort to look at multiple views of any point or argument, it should never look like a single narrow viewpoint.
Additionally, though this may be standard ENGLISH 101, an article should be written with fairly neutral language, the more slander towards a project or subtle negative language, the more a bias is revealed and the less credible the article, the less you should trust their viewpoint and news.
Well there you have it folks, some very easy lessons on how to dissect Crypto News like a surgeon, remember to sharpen your mental scalpel regularly and disinfect your equipment (Yes, I’m not done with my analogy), otherwise you’ll go ahead and catch an infection and invest in a terrible project and lose a whole lot of money. We don’t want this.
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