Crypto News, How to Trade Correctly?

The article discusses the unique dynamics of news and trading in the cryptocurrency market, emphasizing its susceptibility to narratives and sentiment compared to traditional finance. Key points include:

  • The crypto market is highly reactive to news, where even unverified information (e.g., AI-generated fake screenshots or misleading headlines) can trigger extreme volatility, wiping out billions in funds. In contrast, traditional markets are more stable, driven by fundamentals and slower reactions.

  • Crypto news is often a tool for manipulation, not neutral information. Examples include large investors planting "good news" to lure retail traders, protocols hiding critical details in updates, or insiders exploiting DAO proposals. Blindly trusting or ignoring news can lead to losses.

  • The author shares practical "news trading" filters:

    1. Volume over price spikes: Avoid chasing pumps without volume support, as they may be traps.
    2. Track wallet activity: Verify if influencers or insiders are backing their claims with real transactions (using tools like Arkham or DeBank).
    3. Delay entry: Initial news-driven surges are often false; wait for market cooling to identify real trends.
    4. Extend timeframes: Hot topics on social media are usually late; track early institutional moves instead.
  • Conclusion: News in crypto is a "weapon of narrative creation," not just information. Successful traders focus on understanding intentions, verifying sources, and filtering noise—prioritizing cognitive structure over speed. The key is to respond selectively to structured signals while maintaining skepticism.

Summary

❝ A tweet can instantly crash the market.❞

Yes, the crypto market is still highly dependent on narrative and public sentiment.

Crypto News, How to Trade Correctly?

  • A fake screenshot created by AI

  • A misleading headline from a KOL

  • An unconfirmed project collaboration "explosion"

All of these may trigger short-term surges or plunges, sweeping away billions of funds.

In contrast, the traditional financial market (TradFi) is more robust:

  • Fundamentals dominate, price fluctuations are small

  • The news has limited impact on the trend

  • The market is slower and more rational

But in the crypto world, information is the weapon and emotions are the catalyst.

Crypto News, How to Trade Correctly?

2. News is not neutral information, but a means of bargaining

The biggest mistake many newbies make is treating crypto news like traditional news.

But the truth is:

Crypto news is part of the game itself, and a lot of “news” is not about delivering facts but about directing liquidity.

What you see is not information, but intention:

  • Large investors make early arrangements, and then "airdrop good news" to induce retail investors to follow suit

  • Some protocols release updates, but they hide the release of locked funds

  • The DAO proposal was passed, but an insider ambushed and rushed to take over

So in this market:

❌ If you blindly believe in the news, you will become a "buyer"

❌ If you completely ignore the news, you will miss the key market trends

✅ You need to build your own "information filter"

3. Several "News Trading" Filters I Use

1. Look at the volume, not just the increase

Many +30% increases are actually "air pulls"

If there is no real volume support behind it, it is likely to be a trap to lure more people into selling.

📌 Principle: Don’t chase high prices when there is no volume, and only dare to take over when there is volume

2. Track wallet behavior instead of listening to what others say. If someone calls an order, you need to see if he has bought it with real money.

Use tools such as Arkham and DeBank to track the wallet address of the person who calls the order.

📌 Principle: It’s better to do it on the chain than to say it verbally. Wallets don’t lie.

Crypto News, How to Trade Correctly?

3. Enter the market with a delay, don’t chase the first reaction

The first wave of market trends based on many news are false moves. The real big market trends often start after the market cools down.

📌 Principle: Wait for the market to react before deciding whether to enter the market

4. The time dimension is extended to see who will ambush first

The hot topics you see on tweets are often 3-5 days late. Institutional funds and smart wallets have already entered the market before the narrative breaks out.

📌 Principle: Hotspots are terminal signals, and ambush is the core capability

Conclusion: In a market driven by emotions, news is the bargaining chip

  • In traditional finance, news is an external variable that affects prices;

  • But in crypto markets, news itself is a “weapon of narrative creation.”

  • Take the news as a signal and you will be tossed around

  • Treat news as intention, and you will be on the right side

So, instead of ignoring market news completely,

Instead, you need to understand when to watch, how to watch, and what to do after watching.

Crypto News, How to Trade Correctly?

✅ Conclusion: The real "news trader" is not the fastest one

They are:

  • People who understand the intentions behind the operation

  • Someone who identifies the credibility of information sources

  • People who see through the noise and respond only to structured information

This is not a battle of "speed" but a contest of "cognitive structure".

In the flood of information, the only way to trade calmly is to maintain delay, understand motivations, and carefully select signals.

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Author: BTC_Chopsticks

This article represents the views of PANews columnist and does not represent PANews' position or legal liability.

The article and opinions do not constitute investment advice

Image source: BTC_Chopsticks. Please contact the author for removal if there is infringement.

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