Steemit Crypto Academy Contest / S11W04 - Cryptographic News And Events
I am here once again to participate in Crypto Academy Challenge Season 11 Week 04, which is not easy for me but I want to try and prove that I am trying to learn. As you all know I was nill when I joined this website last year but I am trying sincerely. I invite my learned friends @josevas217, @franyeligonzalez and @rishabh99946 to come and participate as well guide me.
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Can news affect cryptocurrency prices?
I always felt that news makes a big difference in how the market reacts, the price, supply and and demand. News has always attracted the attention of cryptocurrency retail and institutional investors. If the price shows upward trend in the media, especially by so-called investment experts and business owners, the prices go up or down accordingly. News increase or decrease the demand for sure especially by related journals.
This means that the common investor gets his all feedback about the price of crypto whether it's going to increase or vice versa. And yes, social media postings by celebrities can influence investor opinion about different cryptocurrencies, which affects their price. The best example of this is Elon Musk.
Between technical and Fundamental analysis, which affects the price of an asset most?
There are various methods the investors use to analyze with investing in the crypto market include fundamental analysis, technical analysis, and quantitative analysis. Long-term investors look for investments that offer the most potential to maximize their returns over the long term.
Generally, it means investing once and forgetting it for a few years as the records show that the end result is always brings profit for you. Crypto experts suggest no time frame but stay invested as long as you can.
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The goal of fundamental analysis is to determine the fair value of a particular currency by evaluating all aspects of the industry, and the cryptocurrency business as a whole.
The goal of technical analysis is to evaluate data – such as historical returns and price changes – for chart patterns that can be used to forecast the future value of the crypto-market.
Events such as Selling of coins massively, The burning of coins, creating new tools for a blockchain, among others. Does it affect the price of cryptocurrencies? If yes then explain and give us examples
Burning of token means removing a certain amount of tokens from circulation. This process is adopted to increase the value of the remaining tokens as assets rise in price whenever the circulating supply falls and they become more scarce.
Token burning can also benefit token holders to validate transactions in proof-of-stake protocols. When a substantial amount of tokens are burned from the system, it is likely that they will receive a higher value than their staking rewards.
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We can say in simple language that burning means permanently removing a number of tokens from circulation. Crypto burning is typically done by transferring the relevant tokens to a burn address, ie a wallet from where they can never be retrieved like we use "null" in Steem Blockchain.
In simple language burning of tokens is applied to reduce the overall supply of that coin. In other words, it creates a "deflationary" event. In a similar fashion, algorithmic stablecoins automatically create new tokens and burn them over and over to maintain their value to a certain level.
Investigate about a news that affected the cryptocurrency market
Here is an example, Reserve Bank of India did not want any currency which did not exist on paper so it reached the Supreme Court to declare all trading illegal and that crashed the crypto market in India. Later RBI set aside the rule and the trading was declared legal and valid which boosted the trading. But last year in June when the Indian government imposed a tax of 30% and other levies it again had a huge impact on the market.
But even if our government is trying to streamline cryptocurrency trading, the high government tax has done a lot of harm to crypto trading in India. People have opted for P2P trading rather than dealing directly.
Can crypto market be manipulated? Give your understanding on this
Definitely, and this is happening on a mass scale. It refers to when people create an artificial price rise by filling orders for any particular cryptocurrency and maybe the agents or even the exchange owners are involved in this practice. This all causes manipulation and price spoofing.
We all feel that market manipulation is illegal and unethical, as it creates an unfair advantage for those who engage in these practices but this is the order of the day.
There are different types of manipulation including spoofing or artificial bearish trends. Beer market trading involves selling a currency to create a false impression of the market going down, while spoofing involves placing fake buy or sell orders in order to manipulate the market.
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It all creates an impression in investors' minds that prices are either crashing or going up and the consequences are always the same, panic selling or buying on false market reports. The result always shows its impact on liquidity, increased volatility, and loss of investor confidence. It could have a negative impact on the cryptocurrency as a whole, as it creates doubt when an investor sees volatility and uncertainty.
It took me a long time to understand that an important point to notice is trading volume. Now if I see a sharp drop in price or a sudden hike in trading volume I feel it could be a sign of manipulation. There is no doubt that the market is full of manipulators finding new techniques so when you see a large hike in demand or supply, think twice before jumping into the market. But remember changes in market sentiment depend on more than one reason so try to understand the triggers first before selling or buying.
Thanks all for reading my humble effort, I will sign off on this note.
I agree with you that news and events do affect crypto market. The price can either go up or down depending of the direction of the news.
This is so exorbitant! This will really impact the crypto market. Opting for p2p is a good option that can help reduce one's tax.
Manipulation is everywhere and not just in the crypto world. But all the same, one just have to be able to bear these news and manipulations in mi d and thus exercise caution while trading.
You have written well dear. I wish you success
Thank you so much, a comment coming from you is a great honor for me because I know you are an authority on crypto-related matters. Thank you once again and my best regards.
Your post has been successfully curated by @jyoti-thelight at 10%.
We invite you to continue publishing quality content. In this way you could have the option of being selected in the weekly Top of our curation team.
Hola Dove 😊
Los gobiernos en general siempre pondran trabas para que las cryptomonedas pierdan su auge porque sencillamente no les favorece para sus negocios, al ser algo descentralizado ellos pierden el control de esto.
Te deseo suerte y exitos en el concurso
And the funniest part of the story is that our government is planning to use a decentralized system in banks so that there is no loss of data in the future. Thank you.
Your participation in the Crypto Academy Challenge and your insights on various aspects of the cryptocurrency market are impressive. Your understanding of how news affects the market, the significance of fundamental and technical analysis, the impact of token burning, and the reality of market manipulation is well-demonstrated. Keep up the good work!
Thanks bro, much appreciated.
https://twitter.com/simaodev11/status/1692245081284305403?s=20
Great job on your article! You've covered how news and events impact the crypto market, the significance of fundamental and technical analysis, and the effects of token burning. Your understanding of market manipulation and its consequences is insightful. Keep up the good work!
Thanks bro, I wanted to cover more but I have input all my knowledge on this post. I am trying to learn more though.
Your welcome @dove11
Your post was informative and insightful. You discussed the impact of news, fundamental and technical analysis, token burning, and market manipulation well. Good job!
Thank you so much, I will keep learning and keep trying my best to share what I learned about anything or everything on this site. Thank you.
Welcome brother ☺️
News has a big influence on the cryptocurrency market and affects price changes. Negative news causes value declines, whilst positive updates increase demand. Prices are also affected by rumours on social media and charity organisations that take cryptocurrency.
Yeah, you know the impact of news is worse than a bomb on the share and crypto market.
Yes of course
La mente es muy poderosa cuando de manipular y creer se trata, pero cuando estamos bien informados y tenemos un sólido conocimiento al respecto de algo no caemos tan fácil en las manipulaciones de otros y lo mismo pasa en el mundo criptográfico, hay que aprender bien cada estrategia para no caer en la manipulación.
Le deseo mucho éxito en su participación
Thank you so much and sorry for the delayed response as I was too busy reviewing SCC posts 👍
Great to see your post in this community! I'm glad to know that you're putting in the effort to learn and share your insights about the crypto market. Your enthusiasm to learn and improve is truly inspiring. Overall, your post was really thought-provoking and informative. Good luck in the contest! 😊
Thanks, I am trying to learn the finer points about cryptocurrency because what I know is all about investment and trading in the share market. I feel the crypto and the share market has a few similarities.