Spotting Misinformation and Rumors

Before you look at a troll box, or open your digital wallet to a surefire rumor, take a look at Coin Pursuit's tips for telling good advice from bad.

Many websites that deal with cryptocurrency—especially trading exchanges—will feature what looks like a chat room box on their front pages. The name this box has been given—the “troll box”—should give an indication of the quality of information you're likely to find there. The content in these boxes scrolls upward constantly, and it often features can't-miss tips for investors. By following this advice (it's actively implied), you'll cash in big on the helpful pointers that are offered there.

When you're following the digital currency markets—actually, this advice applies to life in general—ask yourself one simple question: Who is the person offering this grand-slam advice, and why are they giving it to me, a complete stranger? By the time you finish asking yourself that question, the two-part answer should be apparent: 1) you have no idea who they are, usually, and 2) they're fishing for someone gullible enough to make their investing scheme more profitable for them. Not you. They couldn't care less if you turn a digital dime of profit.

This activity isn't limited to the troll box; you'll often see potentially profitable advice in threads on cryptocurrency forums, too. Investors can be a cynical and wary lot, and they'll often call out nonsense when they see it—but this isn't always the case. So what's an investor to do when they're faced with advice flying at them from all directions?

The good news is not everyone in the investing game is a troll; the industry would have collapsed under its own weight a long time ago if that were true. The best advice to follow here is to consider the source of information, do your research if a tip or rumor seems the least bit shady, and only follow the advice of people you know well and trust implicitly. If you're new to investing, the latter could take a little time—but many forums and exchanges offer ranking systems for their members. The higher a person's ranking, the more likely they are to give solid advice. These are the people you should gravitate toward for straight talk and valid information.

That wraps up our digital currency industry overview. Our will take a look at the mining process: who takes part in it, and what roles it plays in the day-to-day functions of alternative currency markets. In the meantime, set up a free account on SliceFeeds to join in community discussions about this and other topics.

Next Subject is Mining: What is Mining for Bitcoins, Litecoin and Other Altcoins

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