How can a novice trade cryptocurrencies through news?
Never trust gossip or insider information. Pay attention to official news and avoid hearsay.
Regarding the news, let me explain in detail. As we all know, whether it is good news or bad news, it will directly affect the market.
For example, the large-scale sale of BTC by Grayscale Fund, the interest rate cut in the United States, the launch of Sora, and even a tweet from Musk may trigger market fluctuations.
For the market and news in the circle, you can use software such as Feixiaohao and CMC, and for more macro news, you can pay attention to international financial news.
Twitter is also a channel for discovering news, but the Chinese community of Twitter is basically full of advertisements for cutting leeks.
The news we receive is always delayed, so we need to judge the importance of the news, the degree of fermentation, and the market's reaction. What is a major news? That is the news you can see on domestic short videos.
Trading in cryptocurrencies is about speculating on concepts, hot spots, and themes. When a hot spot appears, we need to analyze the importance of the theme, the emotions of the players, and judge whether the current stage is high or low. For example, if BTC is going to rise sharply, it must be driven by big funds (we can observe the funds flowing into the exchange on the chain), plus the joint promotion of players.
This is why I mentioned before that at some point, trading also requires studying psychology.
Never believe in gossip. Think about it, if it were you, if you knew that a certain coin was going to rise, would you publicize it? Of course not, you would definitely quietly build a position.
Finally, if you are a pure novice, and you want to rush into the currency circle when you see BTC hit a record high before, then I suggest you pay attention to me first, learn the knowledge of the currency circle with me, and make up for your basic skills. Only by laying a solid foundation can you go further.
