In traditional markets, most assets confirm their price with financial reporting, capitalization, and a host of other factors that can be clearly analyzed and explored. The cryptocurrency market still works a little by other rules .
Most of the Altcoins formed their market value solely due to the image of the project and the reputation that they managed to win over the life of the project. Until now, there are dozens of assets that are significantly overvalued. But there are also those coins that are underestimated. It is on them that traders diligently hunt , like miners of precious metals during the gold rush.
At the moment, the cryptocurrency market, like no other, is dependent on the news background and reacts sharply to it . Naturally, this is for their own use as bears and bulls. Unfortunately, the market is full of fraudsters who also take advantage of the news on cryptocurrencies to their advantage .
Analyzing news sources and, in particular, content, it can be noted that “bears” contribute to the active dissemination of information that cryptocurrency is an evil , bitcoin bubble and soon everything will collapse. Naturally, this is done to minimize the cost of the first cryptocurrency and other altcoins. Bulls, in turn, support the news on cryptocurrency , which confirms the positive impact of the blockchain and the development of cryptoeconomics in general. Such confrontations are conditionally stable.
The task of the scammers in this case is to bring the hype around the project where the organization of the Pampa ( PUMP ) is planned . If in various sources , including not the most authoritative , a large amount of information pops up within a short period of time that a certain coin is very promising and is recommended for early purchase, you should be alerted . The fundamentals of trading state that any growth must be due to something . Therefore, it is important to examine in detail whether there are real reasons for the voiced coin to go up in price.
Issues of regulation of cryptocurrency at the legislative level
One of the most important news topics at the moment , which can seriously affect the situation on the cryptocurrency market . The course of the coins is affected both by information related to problems in the new mining facilities, and by the recognition of Bitcoin as a means of payment by another country. In order to correctly analyze the further movement of the price of cryptocurrency, the news background should be analyzed without bias . Especially it concerns the information of panic, negative character. It should be understood that the already existing cryptocurrency market with a large capitalization cannot be “covered up” by a single judicial decision . Moreover, many countries are busy with the cryptocurrency regulation process.and developing ways to do it as efficiently as possible. The process is not fast and of course it will be possible to speculate on this topic when publishing provocative articles.
Infrastructure news about cryptocurrency
Also an important role is played by the infrastructure news about cryptocurrency . It is they who are able to raise the development of the market to a new level . Simplified verification systems , installation of ATMsthat cash Bitcoin, easier ways to purchase cryptocurrencies , joint projects with leading payment systems in the world, using crypts as a means of payment from one of the largest retailers and much more. This kind of information has a great effect on market dynamics and price growth.
When it comes to information about the involvement of various financial giants in the cryptocurrency market , this is exactly the opposite. If such huge structures as Goldman Sachs declare their intention to enter the cryptographic market, appoint people to the appropriate positions, many experienced traders understand that such organizations own capital that can greatly influence this sphere in their own interests . In just a couple of hours, and sometimes even minutes, such “whales” can provoke a huge increase in a certain altcoin , by deciding to buy it in large quantities. Undoubtedly, such opportunities will be used for personal purposes.
Hacker attacks and hacking cryptocurrency exchanges
Another type of news that should be considered – reports on hacking and hacker attacks of cryptocurrency exchanges . Expect nothing good from them. The market reaction is almost instantaneous , and its intensity depends on the authority of the site that was attacked. Altcoins, in this case, are practically working around the clock to form the necessary trust quota on the part of users. The primary task for developers is to convince people who are not yet involved in crypto-trading that they are sufficiently safe and secure.. That is why until now, when analyzing ICO projects, special attention is paid to how security issues are spelled out in White Paper . For example, after a series of hacks, as a result of hacker attacks, several investment funds were forced to provide legal guarantees for the refund in case of such incidents. This decision was made after a great resonance in the media and the risk of losing a huge number of customers.
Analyzing news of cryptocurrency should be from several sources at once . Select from hundreds of sites need those that with a specific frequency, quickly cover important events, without losing the most important . A cryptocurrency news aggregator is a great solution in this case. Already, you can find dozens of platforms with similar functionality. A very important source of up-to-date information is social networks such as reddit and twitter.. Here to notice something important often turns out faster. In this case, be sure to check similar content in other places before making any decision because you can run into unsupported empty statements.
Summing up, we note once again that for the cryptocurrency market, the ability to work with the news background can be of great benefit . But it is important to approach everything with a cool head and not to dwell on a pair of permanent sources. First of all, attention should be paid to such events :
– listing of coins on the most popular exchanges;
– project cooperation with major players in the market;
– significant changes in the legislative sphere;
– fixing an important stage, prescribed by the project in the roadmap;
– the appearance in the team of a well-known specialist of the industry, whose opinion is considered.