News Trading in the altcoin market is a trading strategy that leverages significant news or events to drive price fluctuations. Due to the high sensitivity of altcoins to news, this method carries both high return potential and significant risks.
Success Case: In 2023, a certain Layer 1 coin announced a partnership with AWS, and within 2 hours after the news spread on X, it surged by 40%, yielding substantial profits for early investors.
Lesson Learned: In 2024, a certain meme coin skyrocketed due to false rumors of "listing on Binance", leading retail investors on X to buy at high prices before facing a sell-off, dropping back to the original point within hours.
Key: Speed, verification, and discipline are the core of news trading; the altcoin market is emotional, and remaining calm is more important than being aggressive.