Elon Musk sent a tweet on 13 May, 2021, stating that Tesla would no longer accept Bitcoin as payment due to concerns about the use of fossil fuel for Bitcoin mining. This led to a collapse in crypto markets.
After this tweet, Bitcoin fell down from $49K USD to $34K USD within a span of just 10 days.
Clearly, current events and social media activity can influence the crypto market. Therefore, as a crypto trader and investor, you must be aware of the latest news and events as they are happening. This way, you can be proactive rather than reactive.
But, how can you get real-time updates on what’s happening?
One useful tool to help with news analysis and identifying actionable insights is a trading API with a crypto news feed feature. Below, we’ll cover all you need to know about crypto news feed APIs and how to leverage them to your advantage while trading.
At Zenfuse, we’re adding a news feed feature during our Fiji phase of development. Once live on the platform, you can put it to use to help you trade proactively — rather than reactively.
What is a Crypto News Feed API?
First, let’s clarify what an API is. An API, or Application Programming Interface, is a software intermediary that enables two applications to interact.
Thus, a crypto news feed API connects different news sources with applications. With news APIs, you can connect your applications with online news sources. You can use the news data that flows to you to make informed, timely trading and investment decisions.
Now that you understand what a crypto news feed is, let’s see how they can help you win big during crypto bull markets, navigate bear markets, and achieve long-term trading success.
1. Filtering Crypto News and Updates
In today’s interconnected world, we have news coming in 24 hours a day from television, computers, and smartphones. As a crypto trader, your aim is to filter news related to the crypto market from the rest. Doing this work manually will take lots of your time and effort. There’s also the problem of filtering out information that is not important.
This is where a crypto news feed comes in handy. Such a tool brings the news that matters to your trading straight to you.
There are many crypto news feed APIs available, and each has different advantages. Choosing the right one that suits your need as a crypto trader is very important. Given that the crypto world is powered by community, a good crypto news feed also includes social media data.
For example, the Zenfuse news feed API not only provides clean data and credible industry news to users, but will also aggregate data from Twitter, Reddit, crypto influencers, and other social channels.
2. Better Decision Making
Data is the new currency of the 21st century and having informative data at your disposal helps you in making better investment decisions. To understand how timely news availability can help in better decision making read the following crypto incident.
On the 4th of September, 2017, the People’s Bank of China (PBoC) issued a policy against token sales declaring it “illegal and disruptive to economic and financial stability.” This resulted in Bitcoin’s price falling by 5% to about $4,376.42. Meanwhile, Ethereum, widely considered the biggest beneficiary of the ICO boom, went down more than 12%.
Those who got this news and analyzed it on time could’ve pulled their investment out of Bitcoin and Ethereum to minimize losses. And they could’ve bought back in at a lower price.
Such news happens frequently in crypto, especially as governments and regulators decide how to oversee the industry. The best crypto news feeds offer sentiment data, marking news as either positive, negative or neutral. Sentiment is an indicator that can assist you in making trading decisions. For instance, if you are looking to invest in BTC (on the 14th of December, 2021), then you may want to look over this news update:
3. Streamlined Trading
With a crypto news feed, you can automate a big portion of your work: News data collection and analysis. No longer do you have to scour Twitter and Telegram for relevant project updates. You can get them delivered right to your laptop or phone. And you can focus on what matters: Making good crypto trades.
The best crypto news feeds provide updates tailored to your portfolio. At Zenfuse, our news feed feature will deliver news and updates based on the tokens you hold and sell.
4. Easy Integration for Timely Trades
Crypto news feeds are built to track and analyze large volumes of news data related to crypto and uncover valuable insights. For further analysis, you can also download API data in JSON, Excel and HTML format.
Even more importantly, news feeds are often a part of a larger trading platform that links to major exchanges. This enables you to get important info and make trades almost instantaneously.
For example, Zenfuse aims to be one powerful control center for all your trading. As our tool delivers you project news and updates, you can buy or sell with just the click of the button. How amazing is that?
5. 24/7 Tracking
Unlike other markets, which are only open during business days and hours, the crypto market never sleeps. It’s vital to stay ahead of the game — whether you’re in Brazil or Japan.
For example, a government ban on cryptocurrencies that happens across the world as you sleep will affect your portfolio. Imagine being able to get an alert and make the right moves before the market sinks.
The ability to track global news 24/7 is invaluable. And unless you’re a superhuman that doesn’t require sleep, you’ll need a crypto news feed tool to help you.
Stay Ahead of the Crypto Game with News Feed Updates
Just as crypto is the future of money, tools like news feed APIs are the future of trading. No longer do you have to guess about what will go up or down. With the abundance of real-time data available, you can make informed decisions at the right time.
Whether you’re day-trading altcoins or trying to earn passive income with crypto, a news feed service or API can assist you. Every trader and investor should have a news feed API in their trading toolbox.
About Zenfuse
Zenfuse is a powerful all-in-one platform for cryptocurrency traders and investors.
It aggregates multiple cryptocurrency exchanges, allowing control of funds via API, and powers up the trading process, making trading more profitable, simple, and stress-free.
Our cross-platform app provides rich analytics of both your portfolio and order history, giving you the ability to control your funds on a mobile device.
