Learn how to trade and profit from cryptocurrency news signals. The best sources for crypto news trading and secrets revealed! AI news trading bot and Telegram.
One of the main characteristics of the crypto market is its volatility. Unexpected events can cause the prices of cryptocurrencies to either soar or drop dramatically, making for insane crypto signals.
Traders can make the most out of these events, that is, trade signals from the news. However, it’s a very risky move. So, in this article, we’ll explain how you can pull that off with minimal risk.
Can You Get Crypto Trading Signals From News?
Yes, you can get crypto trading signals from the news. However, it’s not in the way typical signals are.
For instance, if whales transferring their liquidity causes the price of a cryptocurrency to drop, no news alert will provide an entry point, stop loss, leverage percentage, or other trading info.
You’ll have to do some market analysis yourself and determine how much liquidity you should risk on short or long trading the cryptocurrency or futures in question.
And what’s worse, you have to be swift about it, as you may be missing out on profits with every second that passes after the news becomes public.
Here are some examples of crypto news alerts that cause volatility in the market:
- Influencer posts: When someone like Elon Musk makes a promotional post about a cryptocurrency, e.g., Shiba Inu, that asset is bound to massively rise in price in the short term. And it goes the other way around if they talk bad about it.
- Whale Alerts: If crypto whales (investors with a massive percentage of liquidity in a blockchain) suddenly start buying (pumping) a crypto token, it will make headlines and soar in price. The opposite happens when these whales suddenly withdraw their liquidity (dumping).
- SEC updates: If the SEC from the centralized world has issues with a blockchain project, it will almost definitely fail, and its token will dramatically lose value as people withdraw their funds. This happened with FTX in 2022.
- Unexpected events: CZ Binance unexpectedly left Binance in late November 2023, causing the Binance coin (BNB) to drop in value. Even though he mentioned that funds on Binance are SAFU, it did little to buffer the coin’s downfall, showing how unexpected events like this can cause price volatility.
How to Extract Crypto Signals from News
Now that you know how the news can drastically influence the crypto market, here’s a step-by-step guide to extracting and trading crypto signals from it.
- News Monitoring: Regularly follow credible news sources, social media, and official announcements in the crypto space.
- Identify Market-Impacting Events: Immediately begin your analysis when an event likely to influence crypto prices occurs.
- Analyze News Impact: Assess how each event will likely impact specific cryptocurrencies, considering potential short-term and long-term effects.
- Technical Analysis: Combine news-driven insights with technical analysis to identify critical support and resistance levels, trends, and potential entry points.
- Risk Assessment: Evaluate the risk associated with the news event and adjust your trading strategy accordingly, considering factors like market sentiment and historical volatility.
- Set Entry and Exit Points: Define clear entry and exit points, including stop-loss and take-profit levels, based on your analysis and risk tolerance.
- Implement Risk Management: Determine the size & duration of your position relative to your overall portfolio size to manage risk effectively. Do not let greed and fear influence your trading decisions.
- Continuous Monitoring: Stay vigilant and monitor real-time market changes, adjusting your strategy if new information emerges.
- Execution: Execute your trade based on your predefined plan when the conditions align with your analysis.
- Review and Learn: After the trade, review the outcomes, learn from the experience, and refine your approach for future trades.
Where to Read Crypto News
The internet is an excellent place to read crypto news, but if you want real-time information, we highly recommend you narrow your search to these three sources. Here is our list of the best sources for crypto news trading:
- X (formerly called Twitter),
- Crypto News Sites and Podcasts
1. X (formerly called Twitter)
No one calls Twitter by its new name, so don’t blame us for using it throughout this article. Twitter is perhaps the best place to get crypto news as it happens. For instance, when a whale dump happens, you’ll see it on Twitter.
Paying close attention to top crypto Influencer accounts, also known as KOLs (Key Opinion Leaders), will significantly help you receive updates on live trends. Erik Voorhees, Whale Chart, Louis Cooper, Defi Edge, and Whale Panda are great accounts you should follow for growth strategies and crypto news alerts.
2. Crypto News Sites and Podcasts
Some crypto-dedicated sites, newsletters, and podcasts drop news about significant events happening in the crypto space a few hours after they begin, making them a good source for reading crypto news. Atop our crypto news sites list are CoinDesk, Coin Bureau, and Decrypt, which release almost instant updates. And podcasts like Bankless and The Defiant do this as well, but in episodic audio and newsletter form.
Reddit is also a great place to get trending crypto news and watch market volatility happen live. Like the time r/WallStreetBets massively shorted GameStop stocks.
Analyse Crypto News Sentiment with AI
Nowadays you can easily analyse the sentiment of every news with artificial intelligence (AI). The AI will analyse the sentiment of the news headline and text and will tell you if it is positive, negative or neutral. This will help you in the decission making for news trading.
For more on the topic of AI news trading with a Telegram bot check this blog post.
Conclusion on Crypto News Trading
Crypto news is a great place to extract crypto signals you can trade. However, it’s very risky compared to AI signals, so much so that only professionals seem to have mastered it.
Regardless, you can make the most of these market-defining events if you play safe, following the instructions mentioned in this article. Still, make every trade decision in volatile times with the conviction that you can lose liquidity just as quickly as you can make it.
Make sure only to trade crypto assets you’re comfortable with losing, as crypto market conditions can be unpredictable sometimes. Always consider setting relatively safe stop loss levels before engaging a set-up. While you may make a lot of profits using its product, Crypticorn is not liable for any financial losses you incur when trading.