Updated: Aug 5
Author: Irem Eren
Publication date: 04.08.2023
Are you aware of how important following the news is for investment? If you are not, keep reading this article to learn how following the news can benefit your investment. Before investing, newcomers must learn how fundamental and technical analysis work. This will nudge them in the right direction.
After learning the basics, the most important thing is to predict which coins will increase or decrease in value. So, in order to analyze that, you should follow the coins’ current growth on their social media accounts and on some news sites.
What should you do in media investment?
There are some colossal risks to trading by following the news. Because relying on fundamental news mostly causes you to react too late. However, you can minimize these risks by taking a few precautions. First of all, you can use social media platforms such as Twitter and Linkedin. Since every digital currency is available on both platforms you can confirm the reliability of new sources with them.
The other important thing is that you can start by turning on the Binance exchange's Twitter mobile notifications. Then, if you come across significant news related to trading, make sure to jump right in. In general, optimistic news on profit expectations drives the share price higher. It is also crucial to be aware of the importance and impact of the news and trade accordingly. Therefore, the key is to enter a trade within seconds of seeing the news.
The effect of economic regulations
In the last three years, it can be said that cryptocurrencies have faced many regulations. After such regulations, the value of many coins had the possibility to decrease. Actually, you should adopt it as a habit to follow the news every morning while you are trading.
In particular, there are wide-range news websites for this. You can follow the current regulations closely on the websites that publish about cryptocurrencies. For instance, you would have found out the latest position of the case of Ripple and SEC much earlier if you were following the current regulations. What’s more, you can follow the exchanges on which XRP is now registered on these websites.
Is trading safe?
The market will always reach a point where it will collapse deeper than it has already fallen. However, you can make profits by following the news closely and also being careful with your risk management. After deciding on which coins to trade with the assistance of the current news, you need to take every step with discipline and a strategy.
Moreover, you should not forget that market trends have no feelings. You are more likely to lose if you get too excited and overlook your own trading method. You also need to accept that losing is just as important as winning. This is because it gives you the opportunity to improve your move for the next step.