29 Jun How Cryptocurrencies Use Social Media To Build Customers
Cryptocurrency isn’t your normal transaction or way of moving money. Nor is it considered the most secure or traditional method of banking.
But this emerging mode of monetary transactions has become an increasingly viable way to spend money through ‘coins’ and allow its initial investors to come away with huge sums of money in return for their investments.
As cryptocurrency is based almost entirely through the internet, it is only natural that they would utilise the behemoth trend of social media to promote their services and ultimately, build a strong customer base among them.
A strong customer base could ensure repeat purchase and continued investment in the company’s coins, increasing its stability and presence in the global financial market.
One key way that cryptocurrency utilises social media is by creating all-important groups called ‘blockchains’. Blockchains is a system that records any transaction made by that particular coin. This is usually maintained across several computers and ultimately, creates a peer-to-peer network that connects customers using the coin to make transactions. This mode of connecting purchasers together acts as a social network to bring together customers, but predominantly also allows for quicker transaction speeds amongst purchasers.
Because cryptocurrency works outside of the traditional banking system, it does not require human interaction with the purchase or any other bureaucratic involvement that would generally go into an everyday monetary transaction. Instead, any sum of money can be easily transferred and allows cryptocurrency to maintain an increased liquidity over its banking competitors.
This could ultimately improve the performance of the transaction in question.
More often than not, cryptocurrency users congregate on forums and other forms of social media to discuss and trade their currency.
Rather than going through traditional routes, such as floating on the stock exchange, these forums are designed to connect users. These forums not only allowed for dealings to take place, but also created an influx of information which ultimately impacts the amount of investment that takes place.
For example, any social media site can allow investors to learn of fluctuations in price, popularity, trust and evolution of new and old coins, which can drastically impact those choosing to invest.
These social platforms allow investors to discuss coins and investment opportunities, which can often create distinct changes in market investment. Ultimately, opinions from other investors can have a significant impact on whether the coin remains invested in, or whether it takes a downturn based on popular opinion.
This is particularly attractive for first time investors, or those who are not familiar with the multitudes of different coin products available for investment on this online market. By having a social media base to tap into, gain information and learn about the cryptocurrency on offer, new customers could generally feel more comfortable with direct investment.
Ultimately, this builds a stronger and larger customer base, particularly when investment in your coin is high. If investors say something isn’t worth investing in, it’s likely a new customer won’t invest. But it’s the social media element to this investing that often vastly increases the number of customers getting involved in cryptocurrencies.
Word of mouth has always been integral to cryptocurrencies building up customers. Many capitalize on current social media trends, whether they be ‘memes’ or other internet jokes, that push involvement in cryptocurrency.
This reliance on social media allows for the spread of knowledge across the vast network that is some of the most popular media sites. Moreover, this spread of information could attract new investors, particularly if the cryptocurrency is well known in popular culture.
Obviously, this can be either positive or detrimental towards the coin’s performance, but there’s no doubt that social media platforms can promote awareness of the brand and be an excellent marketing tactic to increase the visibility of cryptocurrency.
Of course, as many cryptocurrencies are often smaller than traditional banking, they can benefit greatly from outsourcing their digital marketing to a freelancer or other industry professional. These professionals can not only provide expertise in marketing and how to appropriately and successfully promote cryptocurrency across social media and other digital formats, but can pitch the currency to alternative markets that perhaps would not have been open to these companies before.
Cryptocurrency still maintains a difficult reputation among the vast majority of spenders, and a well crafted digital marketing campaign can attract brand new customers.
Cryptocurrency businesses often maintain a small number of operating staff, and outsourcing to a freelancer in the field can provide up to date knowledge that could increase the visibility of the currency to brand new customers.
With social media being one of the best ways to grow your customer base, finding an expert to handle your social media output is perhaps the most important part of growing your business and ultimately, the customers that decide to invest into your cryptocurrency- regardless of how established you are.