Why do crypto traders “buy on the rumor and sell on the news”?
Very easy. Because rumors of listing on reputable exchanges or associations reach very few people … whereas an article on Cointelegraph can reach hundreds of thousands of crypto enthusiasts in seconds. While insiders are quietly amassing tokens based on hearsay, the rest of us are completely ignorant of what may be to come..
But with rumors, there are no guarantees. Which can lead to disappointment and a serious loss of investment for those traders who bet that they are true … and end up being wrong.
So how can you compete with thousands of other market participants when big news occurs? We would have to be among the first to know to take advantage of the price before it shoots up.
Take a look at the following examples: the time that elapses between a closely guarded ad and a steep 144% price hike can be as little as a few minutes.
NewsQuakes ™ on the data intelligence platform Cointelegraph Markets Pro allows you to completely externally bring oversight of the cryptocurrency news space to AI. The machine learning algorithm performs a comprehensive search through thousands of relevant sources and instantly alerts members via mobile device notifications when potential market-moving events are detected.
NewsQuake ™ ads are pulled from primary sources such as exchange websites, Medium posts, or project Twitter accounts., which means that traders don’t have to wait for the media or your favorite influencers to turn raw information into a story.
Extensive research has identified three types of news —Exchange prices, staking and association announcements— as the most likely to cause strong spikes.
Here there is 5 stories that alerted traders to big profit opportunities in 2021 … and some dramatic illustrations of how NewsQuakes ™ tipped off Markets Pro members.
WAX (WAXP): + 144% in 2 hours
Listing of exchanges reliably drives cryptocurrency pricesEspecially when it comes to a small or mid-cap coin that starts trading on a major exchange.
On August 23, before the news of WAXP’s listing on Binance came, the token was trading at 18 cents. Two hours after the announcement, the price of WAX soared to 44 cents. In this situation, breaking the news quickly was essential.
As you can see from the graph, NewsQuake ™ alert (red circle) came just before WAX price rallied.
Decentraland (MANA): 111% in 96 hours
Now it’s hard to believe that in March 2021, long before the rebranding from Facebook to Meta and the associated advertising around the pool of assets that are now known as metaverse tokens, MANA was trading at just $ 0.55.
On March 12, the announcement that OKEx was enabling margin trading for the asset encouraged cryptocurrency investors and sparked a long rally that took MANA from $ 0.55 to $ 1.16 over the next four days.. The earlier traders bought during NewsQuake ™, the more profits could have been secured …
Polygon (MATIC): + 90% in 50 hours
On February 23, amid a cooldown that followed the first leg of the week’s big rally, The announcement of MATIC’s debut on Binance Staking gave the asset a powerful second boost. (The red circle indicates the Markets Pro NewsQuake ™).
The resulting rally propelled the coin from $ 0.11 to its all-time high of more than $ 0.21, a 90% increase.. Today this may seem silly given the token’s year-on-year ROI, which exceeds 11,000%, but on that day, traders were surely happy that MATIC’s price “only” doubled.
VeChain (VET): + 46% in 52 hours
A great example of news about a shocking partnership was VeChain’s announcement of its collaboration with the accounting firm PricewaterhouseCoopers. which emerged on April 12.
It was not a big surprise that News of the business-oriented blockchain project gaining access to a Big Four firm’s customer base will drive the token’s price by 46% in the four days.
In this case, Markets Pro’s NewsQuake ™ came in significantly ahead of the big rally.
Amp (AMP): + 42% in one hour
On November 23, a Post on Binance’s Twitter account announced that the AMP digital collateral token was scheduled to be listed on the exchange’s platform. Markets Pro users received their near-instant NewsQuake ™ alerts in seconds.
It was a very clean upturn: No one was apparently anticipating the news, and the token’s price skyrocketed immediately after the public announcement, climbing almost vertically from $ 0.050 to $ 0.071 in just one hour., representing a profit of 42%.
The moment was key here, and those Cointelegraph Markets Pro members who got the news early thanks to the NewsQuake ™ alert had a head start.
Cointelegraph is a financial information publisher, not an investment advisor. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and graphics are correct at time of writing or when otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
Keep reading: