How the News Influence the Bitcoins Price - Lockdown - How to invest wisely and make money

Breaking

Invest legally, how to invest cryptocurrencies in trading platforms with Stop Loss and Limit, OCO Orders, receive harassment calls with treachery.

How the News Influence the Bitcoins Price

To answer this question, let's look at how news can affect the behavior of buyers and sellers in any financial market. For instance, when a trader enters or leaves the market there are hundreds of thousands of people watching their behavior. 


They have all been influenced by hundreds of stories that have been circulated either through media or from other traders and brokers. When a news story is released that has a negative impact on a country the news influences the price of Bitcoins immediately. If the news is good for a country then the price will be good.


How the News Influence the Bitcoins Price

What makes this effect so important is the nature of the Internet and how it works. 

Unlike traditional markets, currencies can change hands within the same day. 


The speed and the volume of transactions are growing everyday with more people starting to use online trading as a way to move money around the world without the hassle of going to a traditional bank and dealing with high commission broker dealers. Because of this growth of online trading the need for brokers to operate and take transactions has dramatically decreased. This means that the market is now flooded with competition for those who trade via the Internet.


Because of the volume of trading on the Internet news outlets now compete for their share of the market. They will report stories that will either have a positive or negative effect on the value of the currencies they represent. The effect of the news can be negative or positive, depending upon the news outlets and the countries involved. While some news outlets have the sole responsibility of informing traders and the general public, others rely on other outlets to also influence the price of the currencies. Either way the news affects the behavior of both buyers and sellers in the market.


Because of the volume of information that is available to us on a daily basis it has become imperative that we exercise judgement when considering which news outlets should be considered to have an impact on the price of Bitcoins. Some news outlets are completely independent of any particular company or government. These news outlets usually report on stories that have worldwide implications on both business and the economy. In many ways these reports act as economic weather reports that predict the behavior of the market.


For instance a financial news outlet like the New York Times would be considered a major news source and would have the ability to significantly influence the market. 

However there are strict guidelines that must be followed when publishing any news article on the internet. This is because of the laws that are currently being enforced regarding the amount of free speech available on the internet.


In a similar fashion, how the news affects the pricing of bitcoins has become more complicated. Since the price of Bitcoins is also affected by the activities of the market makers. Market makers are people who buy a specific amount of bitcoins at a certain time in order to sell them at a later date. The central authorities of the virtual currency want to prevent people from trading in excess and this is why they intervene by raising the rate of taxes on the selling transactions to ensure that the amount of bitcoins that are being traded are being maximized.


How the news influences the pricing of bitcoins in a non-interventionist manner can be seen in the way the news reporting affect the behavior of the market makers. 

For instance, if a news report states that the IRS is planning to tax any person who owns more than ten thousand dollars, then the market may be affected by the price of one billion dollars in a single day. This is because most of the buyers of bitcoins will move away from the activity of the previous day. The news outlets that publish these news reports may benefit financially from the sale, but not for the good of the virtual currency.


It is possible to use the news to your advantage. It may seem hard to believe that a news report that you read can have an effect on the price of one of the most valuable commodities in the world, but the news does have an effect on the buying and selling of currencies. If you understand how the news affects the price of a commodity, then you can use this knowledge to your advantage and make profits on the market. Some traders buy a particular commodity in the hope that it will increase in value, but this will only happen if the price of that commodity rises as predicted. There is a lot of speculation in the real estate and stock markets, but the speculation never affects the actual value. But news reports have an effect on the purchasing power of the currency.


No comments:

Post a Comment