How to Distinguish Between True and False Market Information?

Authentic, accurate news helps judge market conditions, screen investment opportunities, and confirm investment targets to earn profits. False information gives wrong trading directions, leading to missed opportunities and potential losses.

How to determine whether a piece of information is reliable or not

1. The source of information. A major announcement is more credible if it is released by legitimate organizations, authoritative media, and the project party. However, it is less likely to be true if it is posted by a social media account with few followers or is circulated on social media.

2. The communicator's emotional density. Be cautious when the communicator tries to prove a token is good or bad instead of stating a fact. The higher the emotional density of an opinion, the more likely the disseminator is to distort reality. It is believed that the reliability of a text message decreases with the increase of its exclamation marks.

3. Cross verification. On top of the above two, verify the diversity of sources of information for major news. Multiple sources make the information more credible.

Common Exchange-related Misinformation

1. Large transfers-out

Large BTC or USDT transfers are often visible in whales' daily transfer information. Such transfers typically occur in exchanges, most of which are wallet sorting and internal transfers. Investors seeing these messages should stay calm to avoid being bewildered and induced by fake news.

2. Large sales of BTC and other mainstream currencies

Big investors' significant BTC or ETH transactions are generally considered deliberate purchases or sales. It is worth mentioning that investors may adjust their trading strategies based on news, which is a normal action. General investors should pay less or even no attention to the sales made by a few traders. Additionally, the behavior of big and institutional investors is rarely perceived by general investors unless there is an exception.

3. Suspension of withdrawal

System upgrades and abnormal changes in market prices may force the exchange to suspend withdrawal. This kind of news is likely to be used to manipulate the market or be hyped among competitors. Normally, the exchange will give notice about the withdrawal suspension in advance. However, be cautious of the authenticity of a suspension if there is no official announcement. If a suspension does occur without being announced, investors should judge based on the exchange's brand and strength. For an influential exchange running for years with no record of security incidents or suspension due to crypto runs, like HTX, the best judgment is to believe the official announcement.