A news trend starts saying:
> "Trump supports Bitcoin and plans to integrate crypto policies if re-elected!"
This creates a market hype. Traders on Binance may use this for:
1. Spot Trading Example
Before News: Bitcoin = $65,000
After News: Bitcoin price starts rising due to speculation.
You buy BTC at $65,000 and it rises to $68,000.
You sell, making $3,000 profit per BTC.
2. Futures Trading Example
You expect the price to spike further, so you open a Long position on BTC at 10x leverage at $68,000.
If BTC moves to $70,000,
Your profit =
($70,000 - $68,000) \times 10 = \$20,000 profit per BTC (minus fees)
3. Altcoin Strategy
News like Trump's support may push pro-American or crypto-related coins up (e.g., TRUMP meme coins, Bitcoin forks).
Example: You buy a TRUMP meme token listed on Binance when it's trending, and exit when it pumps 40-50%
4. Risk Warning
Such news can be short-lived or fake, leading to:
Price volatility
Fake breakouts
Quick pump & dump
Always use:
Stop Loss
Proper Position Sizing