True and accurate news can help you correctly judge the market situation, screen investment opportunities, confirm investment targets, and thus obtain investment returns. False news will mislead your trading direction, miss trading opportunities, and may also cause losses.
How to judge whether a piece of information is credible or not
1. Look at the source of the information. If a piece of important news is released by a formal organization, authoritative media, or official project, you tend to believe it. If it is released by a social account with little attention, or information circulated on social media, you tend not to believe it.
2. Look at the emotional intensity of the communicator. If the communicator's purpose is to prove the good or bad of a token rather than to state a fact, then be careful. The higher the subjective emotional intensity of his point of view, the more likely it is to distort the facts. Someone once concluded that whether a text message is credible or not depends on the number of exclamation marks in it. The more exclamation marks there are, the more inclined you are to disbelieve it.
3. Cross-verification. When looking at major news, in addition to the above two points, we also need to see whether the information source is single or diversified. The more sources of information there are, the more we tend to believe it.
Common exchange-related false information
1. Selling information of large amounts of funds flowing out of the exchange
In the daily whale transfer information, investors can often see large transfer records involving currencies such as BTC and USDT. Large transfers often occur in exchanges, and most of these are wallet sorting and internal transfers. Investors need to treat transfer information calmly to avoid being confused and misled by false information.
2. A large amount of selling of mainstream currencies such as BTC occurs on exchanges
The large-scale trading of BTC and ETH by the main players is often considered to be a premeditated entry or sell-off. It is worth mentioning that when there are some changes in the news, investors will adjust their buying and selling strategies according to the situation, which is a normal trading action. Investors can listen less or not pay attention to the information of a few investors selling. Moreover, unless there are special circumstances, the operations of the main players and institutions are generally difficult for ordinary investors to perceive.
3. News about the exchange suspending withdrawals
System upgrades, market price fluctuations, etc. may cause exchanges to suspend withdrawals. Such news can be easily used by people with ulterior motives to influence the market or maliciously hype up competitors. Under normal circumstances, exchanges will announce the suspension of withdrawals in advance. If the exchange does not announce it, you need to pay attention to the authenticity of the news. If the exchange has suspended withdrawals and has not announced it, you need to make a comprehensive judgment on the exchange's brand and strength before making a decision. $BTC $ETH $CYBER
