As an investor, you should always be on the lookout for unique tools that help you get ahead of the competition. There are a lot of obscure ones out there and not all of them work. Sometimes though, you hear a real unique tip that has some factual evidence behind it. On that note, introduce yourself to Google Trends. It's a fantastic way to predict crypto bubbles. Here's how.
This is not rocket science here. Google Trends is user-friendly. Just search BTC USD or LTC USD or any other crypto. When you do this, Trends acts as a proxy for the engagement of active cryptocurrency users as they check the price daily. You can see the growth of these users over a given time. As a result, when engagement levels are running high, that means cryptocurrency is usually on the rise. That's because users want to check the price of their crypto on Google every day to see their value increase. But how much engagement is too much?
There is a dark side to cryptocurrency searches on Google Trends. User engagement is not always a good thing. Sometimes, it gets too high. When it's too high, that means cryptocurrency is in a price bubble and it's set to burst. People online start to panic and as a result, the searches increase on Google to check just how bad everything is. On the other hand, when engagement is low, that means it's a good time to buy.
All in all Google Trends is a pretty reliable way to look at the crypto ecosystem and its fluctuations. As more innovative blockchain startups keep entering the market, it's more important than ever to do your own research. That's why it's so important to have a wealth of important tools at your disposal like this one.