The problem with whales 😪
Hello friends,
With joy of heart I welcome you to my blog and this week we shall be discussing of whales.
In this topic we shall be explaining how whales affect the crypto market, we shall also be discussing if whales in the cryptomarket are worth being feared.
As we proceed, we shall also discuss if small scale investors can benefit from from the manipulation of these whales.
Join me as we begin.
WHO ARE WHALES
Whenever we discuss on the price of cryptocurrency in the market, we cannot do without mentioning whales-the driver of cryptocurrency.
In a literal sense, a whale can be explained to be the biggest mammal alive, and they can be found in oceans.
A whale is an animal that whenever it makes a move in the ocean, it must always be noticed because of the waves it carries while moving.
This moves us to ask, why are some humans referred to as whales in the cryptomarket.
Some humans are referred to as whales in the cryptomarket because of the significant effect they have on the price of the market.
These are individual that whenever they make crypto related decisions, it usually have great effect on the price of cryptocurrency in the market.
A good example of a whale in the cryptomarket is Elon musk.
Elon musk is a very popular and Important personality in the crypto world. His decisions usually have great effect on the price of the cryptomarket.
Let's take a good look at the success of dogecoin in 2021. The success of dogecoin is greatly intertwined with the tweets of Elon musk.
Doge coin experiences a great rise after the regular tweets of Elon musk, this shows how whales affect the cryptomarket.
In a sentence, a whale are refered to people whose decision affects many others in the cryptoworld. They are individuals that own and purchases huge amount of cryptocurrency.
WHY ARE WHALES BEING FEARED AND HOW CAN WE OVERCOME THEM
In a literal sense, whales in the oceans are being scared because of the damages they cause to smaller marine habitat.
They feed on other smaller fishes inorder to grow.
The same is true of whales in the cryptomarket, they might not feed on small scale investors physically, but they do so financially.
Whales in the cryptomarket manipulates the market to their favor, thus leaving small scale investors to suffer the consequences.
Due to the regular disastrous effect whales have on small scale investors, this made them being scared.
Whales in the cryptomarket makes decision base on the condition of the market.
They analysed market conditions and this influences their decision making.
A whale cannot buy a coin at a high price and sell at a low price, it's not possible, they will be at a great loss.
At this, they buy at a low price and sell at an higher price.
The only way we can take advantage of the activities of the whales is by understanding their modes of operation, although their actions cannot be predicted.
Whales operates using two phase in the cryptomarket, they are
Accumulation phase and
Distribution phase.
ACCUMULATION PHASE
SCREENSHOT FROM MT4
Accumulation phase is a market condition that occurs when the market has experienced a bearish move over a specific period of time.
It is a situation indicating that the bulls are about to take control of the market. It is usually used as a bullish trend reversal pattern.
The accumulation phase is market period where whales are about to enter the market and buy at a low price.
An accumulation phase usually signals the end of a downtrend over a specific period of time.
As an experience trader, we do well to wait for the price to break above it's resistance level, which is an indication that whales have entered the market and the bulls are becoming stronger than the bears.
Whenever we enter the market at the accumulation phase, we benefit from the manipulation of the whales.
- DISTRIBUTION PHASE:
SCREENSHOT FROM MT4
The distribution phase is another market condition where whales act and take profit.
It is a market condition that happens when the market has experienced series of higher highs and higher lows.
It is a condition that depicts that the pressure of the bulls can no longer drive the price of the market forward.
It is at this stage that whales begin to take profit leave the coin to dump, at the detriment of retail traders.
With a proper understanding of the mode of operation of a whale, we need not be afraid of them, instead, we can benefit from them.
- We need to avoid greed
- We need to avoid FOMO
- We buy at accumulation phase
- We sell at distribution phase
CONCLUSION
Whales are very important individuals that drive the price of the cryptomarket market.
And since we cannot stop their manipulation, we need to learn how to benefit from it.
I hope my article has shown us how we can benefit from the activities of whales in the market.
Whales are the owner of market in my own opinion, they have the power to manipulate the price of any asset.
Ya, u correct, but regardless, we can benefit from their manipulation 🥰
Yeah, it's very true what you say, every thing there must be a whale pushing behind it to make the other thing grow.
Thank you for sharing this information.
Thank you @jasonmunapasee for stopping by, your reply is highly appreciated 🥰
You have really explained this lecture by pointing out very interesting facts. Personally, I am following the dollar-cost averaging technique to buy Crypto assets. So, I have the ability to minimize my risk at a certain level.
Ok, dats good to know.... thanks for visiting
This here is key. If we can adhere to these simple rules we will sure do well in the market and make prflofitable trades.
Yes you have said well, those factors are what leads to loss funds in Crypto trading
This here is key. If we can adhere to these simple rules we will sure do well in the market and make prflofitable trades.
You have really tried in explaining the effect of whales and how we can escape them.
Yeah, thanks for your comments bro, they are highly appreciated