Tracking Social Media Mentions to Gauge Cryptocurrencies Prices

Bitcoin has been around for a decade now and crypto trading has always been frantic. Trying to find a strategy that works only seems to be HODL, but there always seems to be new opportunities in the market. If you are unclear on how bitcoin works, be sure to check our guide on what is Bitcoin and how it works.

Many cryptocurrencies skyrocket in a very short amount of time, which begs the question — how? Well, there are now tools available to see how well each cryptocurrency is being mentioned across social media. There are hundreds, if not thousands of cryptocurrency trading strategies; some based on technical, others based on fundamentals and most based on well, nothing. So perhaps tracking data on how often a particular coin is being mentioned is a good idea. Moreover, tracking whether the engagement with the posts is high and if the content is quality rather than just bots is vital to determining what could be the next big coin.

One example of this is memebergterminal.com. The site analyses data from Reddit and displays trending coins. It takes all the most popular subreddits in the crypto space such as r/CryptoCurrency, r/CryptoMarkets and r/SatoshiStreetBets and provides a count of each coin mentioned. Moreover, there is a 24-hour percentage change and a seven-day trend bar chart to give more context to each coin. On the charts, there are links so you can directly visit the thread. From there you can read the discussion on any given coin, all of which could be valuable information.

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With many crypto’s involved in sports, exposure to cryptocurrency increases, resulting in more social media mentions for coins. In this guide, we have already covered a platform for Reddit, but there are also other projects tracking mentions on other social media channels such as cointrendz or Santimentfeed. This type of analysis has been dubbed sentiment as it tries to gauge the reactions from the market and general opinions.

Many things can pump cryptocurrencies; from a tweet by a celebrity such as Elon Musk to it just being a meme. Identifying why crypto has increased is very difficult and finding a strategy can be hard. Trading crypto can sometimes feel like betting on your favorite sports team with many ups and downs. Recently, crypto has entered the mainstream, with many English Premier League clubs being sponsored by crypto companies such as Watford, and crypto.com’s recent deal with PSG. The people’s game and the people’s currency seem to have a strong relationship at this point. You can even bet on your favorite sports teams with crypto at some of the best sports betting sites. On the site, there are guides to help players, they advise on the best sites to place your bets on, which has the best bonuses available that players can take advantage of, along with expert advice on betting techniques and a list of the top sports to wager on.

Some crypto traders have a strategy whereby they only trade on when Elon Musk tweets about any cryptocurrency. This would have worked very well if done with Dogecoin, but everyone is after that next Dogecoin or Shiba Inu. A difficult part of the blockchain/cryptocurrency space is trying to rationalize the protocol as opposed to the hype surrounding it. However, it does have appeal to people because there are low barriers to entry and if you HODL long enough you might get a new sports car.

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Many traders in the crypto space are technical traders checking for patterns in the charts and executing trades accordingly. Most traders, though, will buy a coin on a hunch, or what they have read or what their friend suggested. It is vital to remember that the crypto market is nothing like the stock market. There are very few checks and balances and it’s open 24/7/365.

Scouring mentions and opinions on individual cryptocurrencies would be valuable information, just as such as Google search trends. If more people are looking at a particular coin, the audience is larger, meaning more of a chance people will buy. Basing a strategy on these two factors could therefore potentially be beneficial. Nonetheless, it is crucial that you do your own research and understand that cryptocurrencies are very risky products.

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