Introduction to Market Manipulation in Cryptocurrencies by @moneyster

in Tron Fan Club9 months ago

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Assalam-o-Alaikum Steemians !


I'm @moneyster, a professional level Cryptocurrency investor and an analyzer. As usual, today I thought to share another Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community

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What is Market Manipulation in Crypto?

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Screenshot Source - www.tradingview.comLocation


According to the above screenshot, we all can see that the Crypto Market has taken a sudden price movement by changing the entire price movement. In such cases, most of the retail Traders are losing their funds and even some big Traders have to sacrifice even their entire funds due to long entries.

If we closely look at the science behind this price movement, we can clearly understand that there is a huge money flow in a short period of time. But, the huge money flow will not continue and it only takes a start to the price change. After seeing such sudden price movement, most Traders tend to act according to the way the Trend is going at this movement. This is how the market manipulators are taking advantage of this movement.

In fact, they are artificially creating such price movements to Incite other Traders to take support for Market liquidity. That's why we can see some unsuitable price movement after a certain pattern. Market manipulators sometimes keep some connections between some crypto exchanges and they may have their support.


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What are the benefits and disadvantages of having Market manipulations in Cryptocurrencies

As I said above, Market makers are making a significant contribution to keep the Market liquidity, and as well as they are taking advantage of it. So, sometimes, it is very difficult to understand the value of market makers. Because, when a project doesn't have much liquidity to keep buy or sell orders, they have to ask for the support of Market Manipulators. So, we can take this as a benefit of this movement.

On the other hand, Market Makers are taking much more advantage by manipulating the market unnecessarily. They are moving the market as per their desire and all the other Traders have to sacrifice their funds due to such behaviors.


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How to protect our funds from Market Manipulators

Probably, we can't prevent from Market manipulations completely. We have to protect our funds by using some protection when Trading. As an example, we are able to create a stop level at a certain price level. And also, we can reduce the amount of our funds that we invest at a certain time. It means we can invest our funds step by step several times.

And also, we can keep our eyes on some Volume indicators to see the money flow in the market. When the market goes in a direction without much money flow, it can not be a strong entry for a Trade.


In this way, we can easily use this knowledge to take more accessible trading opportunities in the crypto market. However, we can try to combine some indicators to increase the winning percentage at all.

At the same time, as I said in my previous article, we should remember that all the indicators and strategies are not efficient completely as nothing we can find 100% efficient in the world. So, we should depend only on these strategies and indicators to confirm our trading opportunities.

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I have studied the below-sourced articles to study these topics further, and I have explained all the above facts in my own words and experience.


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Your whole post was very amazing. But i like most and i learned some important things from your shared part that was how to protect our funds from market manipulators. Thank you so much for sharing.....

Good post.Thanks for sharing this.

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Thanks for talking about on this subject. Market Manipulation is not good.

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