Supreme ✅Crypto trading by events. What news influences the price of cryptocurrencies?✅

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How to profit on the news

Since its inception, the cryptocurrency market has been very sensitive to the information background. Yes, all markets are sensitive to news, but in cryptocurrency this is especially pronounced due to:

• relatively low capitalization;
  
• lack of specialized education of the majority of traders and investors;
  
• general market volatility.
  

That is, the price dynamics in the cryptocurrency market is much more active than in the stock or bond markets, and at the same time, its participants are more susceptible to news and psychological factors. This environment opens up opportunities for traders who follow the news and know how to predict its impact on the market. 

In other words, it is possible to profit on the news by utilizing pumps and dumps that trigger high profile news events. Some events, such as a Fed rate hike, can resonate with the entire crypto market, while others provoke a reaction on a specific segment or only a single coin. The ability to gather news about such events and react to them in time is the basis of the strategy of trading on news.

Strategy of trading on news

At first glance, a news trading strategy is one of the simplest on the market and requires only two actions from the trader:

1. Buy on good news - good news is likely to attract the attention of other market participants and give investors hope for growth. This means that after the release of good news, there will be more demand for the asset or the market as a whole, meaning prices will go up. 
   
2. Sell on bad news - bad news has the opposite effect, it indicates project failure and increases the risk of the investment. Many investors will choose to dump too risky assets from their portfolio or at least reduce their exposure. This will lead to sales and prices will go down, which means you need to sell before the price collapses.
   

Sounds simple, doesn't it? Problems appear when you try to put the strategy into practice. Here are just a few of them:

• Where do you get your news?
  
• How can you tell if the news is bad or good?
  
• How to understand how important the event is for holders?
  
• How to make trades before the bulk of traders react?
  

Some of these issues are purely technical or organizational and we will discuss them in detail below, others require a basic understanding of the psychology of the market and its individual segments, and for this you need to "plunge" into the information environment and for some time to monitor the response of market participants. For trading on events it is impossible to use patterns prepared in advance by someone, as in the case of techanalysis, it is necessary to have a system of evaluating the experiences of other market participants based on your own observations and experience. It is impossible to trade on news without becoming a part of the market and immersing yourself in it so deeply that you can literally "feel" its moods.

What news to watch out for

There are several categories of news that can help predict the price movements of a particular cryptocurrency or the market as a whole:

• Project Announcements.
  
• Havernance proposals.
  
• Political events.
  
• Economic events.
  
• Investment fund announcements.
  
• Whale actions and transactions.
  

Sometimes events seemingly unrelated to cryptocurrency can affect the market. For example, a flood in a country with a high concentration of miners or the introduction of mandatory visas for workers from third world countries. But since other traders rarely follow such news, their impact may be delayed.

All received news should be marked as "good" or "bad". The former can cause a price dump, the latter can cause a price dump. Sometimes putting news into a particular category is easy, sometimes it is more difficult, and sometimes it may not cause a market reaction at all. Let's look at a few examples of good and bad news to see how this works:

Examples of good news

One of the most anticipated bullish news of recent times is the Ethereum Merge. The merge should turn ETH into a deflationary asset and boost demand for it from potential validators. Recall that The Merge took place on September 15 and here is the Ethereum price chart on that day:



The second example - a major upgrade of Vasil is scheduled for September 22 in the Cardano network, which should increase network capacity and reduce transaction fees. As you can see, on that day Cardano's native token $ADA started to grow rapidly:



Examples of bad news

Bad news works the same way, only in reverse. This is what happened, for example, to the price of ETH right after The Merge, when the head of the SEC said that PoS cryptocurrencies can qualify as securities:



Another example is the infamous LUNC (the native token of the Terra ecosystem). It rebounded nicely and held up well for a while until Do Kwon got into trouble with the Seoul prosecutor's office:

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Interesting

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This is a bump

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seems sus

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This is a bump

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This is a bump

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i did it but i never received  back my money ! help

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This is a bump