Why Following Crypto Exchanges Makes for a Better Investor
The advance of the cryptocurrency market has seen a large increase in the number of exchanges. Exchanges offer invaluable on-roads and off-roads to investors, who can buy crypto with fiat and convert their crypto back into fiat. They also offer trading tools and price charts while many of them offer analysis, as well as news and other critical crypto information. Following exchanges can benefit the modern crypto investor in a lot of ways.
The addition of a cryptocurrency to one of the major exchanges can lead to sizeable price bumps for new coins. Snipers will even buy up presales and then wait for news of listings on Coinbase or details of the newest coins listed on Kucoin before monitoring the price changes. According to crypto writer Sal Miah when a coin is listed on a major exchange, it gets attention from a larger audience which gives its price the potential to moon. Rumors regarding upcoming listings pervade the industry, but by following the exchanges themselves, you can cut through the noise and ensure you only pay attention to genuine announcements and real listings.
Exchanges also offer general crypto market news and some news on the coins they list. They can provide reliable information and analysis of the crypto market, too. If you want to read about the next Bitcoin halving or Ethereum’s next hard fork, some exchanges not only provide timely information on these stories but offer in-depth analysis. There are a lot of crypto news sites out there, but they can be filled with rumors, gossip, and inaccurate information. That’s why following the right ones, as well as feeling the community pulse through social media are two musts for effective crypto trading.
Cryptocurrency is disruptive, and blockchain, which is the technology that underpins it all, has the potential to be useful in a host of different industries and settings. This means innovations are hitting the crypto market all the time, and it can be difficult to keep abreast of advances. Some exchanges, especially the likes of Coinbase, offer educational information. You can find whitepapers and deep analysis of new coins, and you might even be rewarded for soaking up that information and completing quizzes.
Exchanges offer live prices, which means they can also show price history. Most exchanges take this further by offering charting platforms and price information. It is meant as a means to encourage trading on the platform and to keep traders coming back. Investors can find some exchanges that also offer individual analysis of price movements: again meant to show the exchange’s value to users.
Some exchanges offer airdrops and other bonuses. Binance has its own coin, for example, which can be used to trade on their exchange, and they sometimes offer discounts. Other exchanges also hold trading competitions. Following the exchanges means you will get first-hand knowledge of these offers, discounts, and competitions.
Regulatory changes can significantly impact cryptocurrency investment. SEC announcements can push prices up and down, while major changes can even affect a person’s capability to invest or not. As the cryptocurrency market is still in a state of development, these changes can be profound, and because exchanges have a vested interest in those changes, they are usually among the first to report and comment on them.
The cryptocurrency market is never quiet. It holds a lot of potential for investors, but those investors need to stay informed. One way of doing that is to follow websites and influencers to enjoy access to the latest information. Crypto exchanges are at the forefront of the cryptocurrency market, which means they have a lot of first-hand information to share, which means they can provide invaluable and vital information to improve investment results.
