Event-driven trading
A strong media presence of a specific coin or crypto exchange can impact cryptocurrency markets. This cryptocurrency trading strategy focuses solely on taking advantage of these ‘events’. It’s a popular trading strategy for those new to trading.
News coverage of current events can influence the prices of many things like forex pairs, stock indices and commodities – not just cryptocurrencies. This influence is not just speculation – many experienced traders will take advantage of this.
You’d normally wait until the market shows a consolidation pattern before an expected news release (like an earnings report) and then act as soon as a market breakout occurs. Yet, due to the volatile and unpredictable nature of cryptocurrencies, you may have to wait until after such a news release is published before engaging in the trade.
Simply put, you’d buy your chosen cryptocurrency when positive news is announced and short it when negative news comes out.
