Crypto and Fake News - How to Avoid Misinformation? 

The crypto industry is becoming more popular with each day that passes. According to TripleA, there are over 320 million crypto owners in the world, and as of December 1, 2022, the global crypto market cap stands at $858.43 billion.   

With such popularity worldwide, the crypto industry could not be protected entirely from fake news and various posts that can misinform users. Thus, how can you avoid fake news so that both your crypto knowledge and investment stay safe?   

What Is Crypto?  

Cryptocurrencies are virtual currencies that are developed through cryptography. This way, all the information is securely stored, and only those who own that data can access it.  

Cryptocurrencies are unregulated and are stored in a decentralized system so that anyone can add information to a specific network while it is almost impossible to steal it.  

Crypto can be bought, sold, traded, staked, mined, used for various payments, and many more. Depending on a user's choice, digital assets can be stored in hot or cold wallets. 

Crypto and Fake News 

Ever since Bitcoin was launched, the market has grown rapidly, and while there are plenty of websites that can help investors better understand the whole industry and the latest events, others do not have the same purpose.  

Considering the fact that cryptocurrencies' prices can fluctuate very easily, some people decided to take advantage of that and use fake news to manipulate the market. Take Litecoin, for example. In 2021, a fake news story announced that Walmart was partnering with Litecoin and was to start accepting it for payments. The price of Litecoin increased almost immediately from $175 to $240. After both Walmart and Litecoin denied the news, Litecoin's price fell dramatically.  

Such events take place every day in the crypto world, and they can highly affect investors' portfolios, as some users may trust a story and invest in a cryptocurrency, ending up with significantly fewer assets in their wallets.  

Nonetheless, there are some practices that can help crypto enthusiasts check the news and make sure that a story is trustworthy. This way, they can make the best out of their investments.  

How to Avoid Misinformation about Crypto? 

Check a Story Multiple Times 

Whenever you find news about an event related to the crypto industry, it would be great to double or even triple-check it. If a story is legitimate, there will be many websites that will talk about it. Furthermore, it is important to include popular and trustworthy websites in your research, as they are always trying to stay as far as possible from fake news.  

Checking a story multiple times can help you decide whether an event is worth considering when making your crypto decisions. This can help you keep your assets safe.  

Be up to date about the Latest News  

Crypto investors always have to be up to date regarding the latest news in the industry. Trustworthy crypto news websites like Coinpaper can help with that. If such a website wants to keep its users close, it will try its best to deliver useful and legitimate information as soon as possible so that it can help its readers at any time. Try to find some websites that you can fully trust and regularly check so that you do not miss any major events in the crypto world.  

You may also want to subscribe to a crypto newsletter, as such a service will deliver the news directly to your email, and you will find it even easier to find out about the most recent crypto events.  

Follow a Coin's evolution over time  

Any crypto investor knows how important it is to always check how a cryptocurrency is behaving. Data such as circulating supply, market capitalization, a coin's current price, the trading volume for a set period, or the price evolution of a cryptocurrency can help crypto enthusiasts better understand what has affected a certain cryptocurrency lately.  

As we mentioned before, a cryptocurrency's price can significantly fluctuate depending on what happens in the industry. And even though this volatility can be caused by the current market conditions or the supply and demand, news can also influence cryptocurrencies' prices.  

This is why it is extremely important to constantly check how a cryptocurrency is behaving on the market. Such data can tell you what happened in the past, as well as what is about to happen in the near future.  

Final Thoughts 

With the crypto market growing rapidly and becoming increasingly popular, fake news could not arrive late to the party. However, there are some practices that investors can consider when checking the latest news in the crypto industry. 

When aiming to check a story's legitimacy, users can check it on multiple websites, follow trustworthy crypto news websites, or follow a coin's evolution over time. To get the best out of the crypto news, it would be best to combine all the practices, as well as perform constant and thorough research about how the whole industry works and what may be able to affect your investment.