Falling the cryptocurrency market stopped? The answer to this question can only be given to the favorite players who are called manipulators. We reviewed the mechanisms of earnings in the market cryptocurrency precisely by such participants.
Whale is the largest animal on the planet. For this reason, the richest traders and major trading organizations are called whales. Tolsturalumes can significantly raise the cost of assets at the expense of investment. There are evidence that in 2013 the sharp jumps of the Bitcoin course from $ 150 to $ 1000 was due to the actions of only one organization. A counterweight also conducted a study on the stabilization of the market cryptocurrency. In any case, major players can significantly affect the cost of coins. How do they do it?
First, whales deliberately push the price down to activate
The task of whales is to reduce the value of the asset below 100 dollars, a potential psychological barrier for some market participants, and, therefore, the probable point of installing stop-loss. This can be done as follows:
A separate type of whales can be called the stock exchange.
Possessing a trading platform, cryptoche managers can dictate their terms of the game. It will not help to oppose them, even the correct analysis and forecast of the cryptocurrency market. Let’s see how it works on the example for BTC.
Manipulation by the Exchange is that it moves a little the price in the wrong direction to cause sale. As a result, the investor loses the whole margin. Executives Exchange have information about what prices will cause sale. Thus, they have the opportunity to manipulate the movement of the course with the help of bots.
Another common strategy used by whales to manipulate the market is called a spoofing. Stena in trading is a strategy that implies a large number of false orders with instant cancellation. As a result of such actions, investors receive signals for purchase, but do not have the ability to implement them. Consider an example of using a spoofing for profit:
Such a strategy works to create a downward trend. After placing large orders for sale, the fraudster generates bearish signals, encouraging investors to sell an asset at a lower course.
PUMP & DUMP (P & D) is a way to manipulate the market, which is to buy inexpensive cryptocurrency, artificial overestimation of its price, and then reset the asset at the peak. In 2018, such groups began to actively develop in the cryptocurrency market. As a result, they are already
How does the PAP-Group work?
As a result, the most slow players from the same groups lose, as well as ordinary traders and investors who believed unconfirmed news.
Insider Trade is similar to the PMP-Groups in one aspect — the investor owns information inexail in advance. Data on Listing cryptocurrency on the stock exchange, updates, developer strategies, problems — all this can be earned, if you know the patterns of response investors for fundamental news. Such trading is prohibited almost everywhere and punishable in accordance with the law. Bright example — Coinbase incident with Bitcoin Cash in 2017. Then the American Exchange published a post on Twitter that BCH will be in Listing Exchange. But even before the announcement, the cost rate has grown strongly.
To make money in the cryptocurrency market, you need to pass vocational training of trading or simply