Already approaching the end of this series of special articles, we recommend you read the previous two. Basically, we want you to efficiently identify the strategies of crypto whales and their actions based on the knowledge of how they think.
We stress that this information may be useful above all if you seek to understand the relationship between the actions of crypto whales and the fluctuations in the price of cryptocurrencies in the market.
Fully market the market with short attacks, the most elaborate strategy of crypto whales
This is the latest crypto whale strategy that we will review here. By rigging we refer to the fact of dishonestly fixing the result of something to obtain benefits.
Short attacks usually occur with currencies that have a small market cap, but the potential to expand it in the near future. In addition, in the world of cryptocurrencies, as in the regular market, there are great actors such as banks and hedge funds.
Although they deny being in the cryptocurrency market, the truth is that it is not credible, especially in this market where there are almost no regulations and where the profits are unlimited if you know how to play well.
A good example of short attacks of crypto whales was in 2017 when there was a sudden downward spiral in Bitcoin and altcoins. This was due to fear, uncertainty and doubt (FUD). Specifically, this was a context in which news that China was banning cryptocurrencies abounded and futures had an expiration date.
The above is not a coincidence and was called a short attack. The market was clearly manipulated and the price of Bitcoin fell.
When sudden changes in cryptocurrency prices are observed, we must remember that there is no such thing as a coincidence in trade. Nothing is a coincidence. Something is not sold to someone by chance. There is always a reason behind a sale.
Additional facts to consider
Given this, remember that even with all your knowledge, you will make mistakes. The idea is that as you have experience in this market you can decrease the frequency and magnitude of these errors.
In addition, it is usually difficult to see if a whale is manipulating the price or if it is only the market moving up or down. The intention is that after reading these three articles you have the ability to recognize the signs that there is something behind which you should pay attention.
As additional advice, we will tell you never to follow the cryptocurrencies that increase exponentially in one day, as you could be the one to buy in an artificially created «All Time High».
How can you benefit from crypto whales
Now that you know how whales think, you can watch for signals and jump to invest at the right time. In addition, time is everything in the cryptocurrency market. In short, to make money with cryptocurrencies you need nerves of steel. Crypto whales know how to be patient, but you too?
Keep an eye on our articles to be aware of the news. The next big event that will surely shake the crypto industry is that of Bitcoin halving. For more information, click here.
Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.