As the old saying goes, buy the rumor, sell the news.
As a digital-native asset class, cryptocurrency prices are clearly vulnerable to market-moving news developments that instantly spread across the internet. Staying abreast of bullish announcements can help crypto traders rake in huge profits, but navigating the crypto news landscape can be daunting.
Two major hurdles stand in the way: the abundance of potentially relevant information and the difficulty of ensuring you’re always among the first to hear the news that really matters. Extensive research shows that three types of crypto-related developments most consistently move digital asset prices: listings, staking announcements, and large partnerships. This insight narrows the scope of developments that will interest most traders.
Now, what’s the best way for crypto folks to ensure they get to the potentially momentous stories before the rest of the pack? There is no shortage of technological solutions, from carefully curating one’s list of Twitter notifications to various crypto data terminals.
Subscribers to Cointelegraph’s proprietary data intelligence platform, Markets Per, have it easy. You get access to NewsQuakes™ – a machine learning service that constantly monitors thousands of primary sources and automatically notifies the Cointelegraph Markets Pro community within minutes or even seconds of publication.
Here are three examples of how Cointelegraph Markets Pro subscribers could have benefited from the power of NewsQuakes™ in March.
ANC: Announcement of staking program sparks rally
Staking announcements can move the market a lot, especially when an asset staking program is launched on a major platform and offers attractive terms. The launch of Anchor Protocol on Binance Staking with up to 40% annual percentage returns on ANC fits perfectly into the picture.
The announcement, delivered to Cointelegraph Markets Pro subscribers as near-instant NewsQuake™, was based from the Binance Twitter account. The token was trading at $3.79 when the news broke and quickly picked up steam thereafter. Eighteen hours later, the price of ANC reached $4.90 and then continued to climb to break through $6.00 by March 5th.
SNX: A double-barrelled listing announcement
Another fateful tweet put huge upward pressure on the Synthetix Network Token (SNX) price. The news affected SNX listing on Binance.US. Interestingly, there have been two Twitter announcements of the upcoming listing, but apparently the first one (the first NewsQuake™ symbol on the chart on March 8th) didn’t generate much buzz. However, the news of the actual start of SNX trading (the red circle on the chart) sent the price of SNX from $3.98 to $4.77 in 23 hours – a 19.8% increase.
SAND: A big partnership means big wins
Partnership announcements tend to appear slightly less frequently among the highest impact NewsQuakes™ compared to listing and staking messages. Sometimes, however, there are partnership agreements whose price-driving effect dwarfs that of most other NewsQuakes™. As a rule of thumb, if you have heard of a non-crypto entity collaborating with a crypto project, the price of the associated token is likely to increase.
Banking giant HSBC is certainly an institution familiar to most traders. Its move to the Metaverse, facilitated by The Sandbox, was something that could spark a massive uptrend for the SAND token. Sure enough, the price of SAND soared almost vertically minutes after the crowd was alerted to the news by Cointelegraph Markets Pro, surging from $2.85 to $3.28 in just 18 hours (a 15% gain) ).
Cointelegraph is a financial information publisher, not an investment advisor. We do not offer personalized or individualized investment advice. Cryptocurrencies are volatile investments and involve significant risk, including risk of permanent and total loss. Past performance is not a guide to future results. Illustrations and diagrams are correct at the time of writing or as otherwise stated. Strategies tested live are not recommendations. Consult your financial advisor before making any financial decisions.
https://cointelegraph.com/news/3-times-in-march-that-savvy-crypto-traders-bought-breaking-news-for-the-price-of-a-rumor 3 times in March, savvy crypto traders bought breaking news at the price of a rumor