Crypto Academy Season 3: Week 1 – Whales - The Driver Of Cryptocurrency Value – by @wahyunahrul

Based on the understanding that you've gained from this class, explain why whales are so feared by small investors?

Whales are simply big investors in the cryptocurrency market. In cryptocurrency, the whales are the major players in the market. They are the big investors who invest a large amount of money to acquire a large amount of coins. Because of this, they are able to move the market. In some markets, whales have the capability to manipulate prices in the market because of their huge influence. Because of their influence, they are considered market makers. The main goals of the whales is to enter the market and buy at low prices, and exit the market and sell at high prices.

The whales are feared by the small investors because the whales can manipulate the prices in the market in their favour, and make it go against the small investors. A whale is also a market marker and has huge influence in the market because of their high purchasing power. Small investors lose money because of the manipulative power of the whales. The whales buy their coins at low prices and when they prices increase, they dump it on the small investors who bought at the top. The actions of the whales are mostly in 4 different phases to complete the cycle. Small investors who bought at the uptrend phase would lose money when the whales begin to dump their coins in the distribution phase. These are some of the reasons why small investors fear the whales.

Also, the small investors who bought coins at a high price and hoping for the price to keep increasing would lose money when the whales begin to dump their coins due to a negative news. A lot of whales dumped their Doge after pumping it due to Elon Musk tweet. As the price of doge went very high, the whales dumped their coins. This caused a lot of small investors who bought at the top to be at a loss.

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Will we be able to take advantages of the existence of the whale that is so feared?

It we will be able to take advantage of the existence of whales in the market. We all know that the whales wants to make maximum profits from their investments, that is why they manipulate the market in their favour to go against the small investors. In order to take advantage of the existence of whales in the market, one needs to fully understand how the market cycle works and the different phases that the whales operate in the market. The actions of the whales are mostly in 4 different phases to complete the cycle.

When you understand the market cycle and how the whales operate, you can take advantage of the whales in the market and make very big profit. For instance, when the market has shown signs of the accumulation phase, smart investors usually go long to capitalize on the uptrend that will follow. Likewise when the market is in an uptrend, smart investors try to go short at the top of the uptrend.

Find an example of a whale's cycle on a cryptocurrency chart, and do a detailed analysis of the phases in the cryptocurrency chart (don't take the cryptocurrencies that are ranked in the top 10 as examples)

ENJ/USDT Chart

Accumulation Phase

This is first phase of the market cycle. This is called the accumulation phase because of it is the time that the whales accumulate coins and load their bags with large quantity. In this phase, the market might move horizontally and fluctuate up and down. As the whales continues to buy gradually by buying at different price levels, the market only moves up slowly. From the chart, the whales began to accumulate at the $0.2263 price point, the price began to slowly increase.

Uptrend Phase

In this phase which is the second phase, the small investors have noticed that the price is moving up. They begin to buy as well. There are more demand in the market, the selling force is suppressed as demand surpass supply, the price continue to increase. As more investors enter the market, the price continues to rise, attracting even more investors. Fear of missing out sets in. The whales who bought so many coins are not selling and waiting for the right time to take profit. The chart shows that the price of ENJ went all the way up to $2.6693.

Distribution phase

This is the third phase of the market cycle. In this phase, the whales who accumulated a lot of coins are in big profits already, and it is time to take profit. The whales start to take profit by selling some of the coins. The whales began to take profit at $3.5484 price point. The New investors who enter the market late buy these coins. The price begin to slowly to diminish, the selling pressure from the whales push the price down. The market might move up and down in the distribution phase. The whales began to take profit at $3.5484 price point.

Downtrend phase

This is the fourth and final phase of the market cycle. It is at this phase that the market confirms that it is bearish. The whales have sold all their coins and is waiting for the next accumulation phase. Panic enter the market, small investors are also selling their coins due to fear and the price continue to fall.

If you are a “Whale”, what cryptocurrency would you choose to invest or trade (except those that are in the top 10), explain why you chose that cryptocurrency

Bittorent (BTT)

For me, if I am a whale, I would invest heavily on bittorent BTT. BTT has a lot of growth potential especially now that the market is down. Torrent is huge and has a huge community. Not only that, the bittorent community is large as well. Bittorent is already working platform that has been around for a long time before the integration into the tron network. For me, bittorent is a very interesting project that can grow a lot in the future when more and more people begin to use the product. The cryptocurrency is still new and can grow to massive price increase in the future.

Bittorrent token BTT is simply a token that tokenizes the bittorrent ecosystem. Another reason I chose this token is that BTT is a tron-based token which means that transactions are fast and transaction fees are very low. Also, BTT is a utility token of the Bittorent ecosystem and it powers the feature of the bittorrent platform. BTT is still far off from its all-time-high which for me is a good buying opportunity because there is a high chance that BTT will reach and even surpass its all time high in the nearest future. In my point of view, BTT has the potential to enter the top 5 cryptocurrencies on coinmarketcap because of its utility and huge potential if it is adopted by most of the torrent users. The coingecko chart shows that BTT still has a lot of room to increase because it is far off from its all time high. Lots of profits to be made when BTT goes back to its all time high.

Do a kind of analysis as a whale with the phases that I explained earlier on the chart of your chosen cryptocurrency, show where you will start buying the cryptocurrency, and explain how you will take profit.

Still on the ENJ/USDT chart, I have indicated the points where I will begin to buy my coins and the point where I will begin to take profit.

The first phase is my accumulation phase where I will begin to accumulate. The accumulation phase begins when the price of ENJ is still low, I will be buying the coins at different price points so as not to cause the price to rapidly increase.

The second phase is the uptrend. When the market enters an uptrend, I will not take profit immediately, I will hold on to my coins and observe the market carefully.

The third phase is the distribution phase. This is the phase where I will begin to take profit. I will begin to take profit by selling my coins and distributing it to other new investors who enter the market late. On the chart, I indicated the point where I will begin to take profit.

The fourth phase is the downtrend. At this point, I have taken profit. After selling my coins, the market will slowly enter a panic and the selling pressure overcomes the buying pressure. I have made so much profit and will watch the price drop. More investors begin to sell as well, the price keeps falling down, I will carefully observe the market to know when to begin to accumulate again.

Conclusion

The cryptocurrency market is heavily surrounded by the whales who are simply big investors in the cryptocurrency market. The whales are the major players in the market. They are the big investors who invest a large amount of money to acquire a large amount of coins. Because of this, they are able to move the market. In some markets, whales have the capability to manipulate prices in the market because of their huge influence. Because of their influence, they are considered market makers. As always, the main goals of the whales is to enter the market and buy at low prices, and exit the market and sell at high prices.

Task post for @wahyunahrul