Crypto academy season 3 beginners course week 1 whale the driver of cryptocurrency value by professor @wahyunahrul

in SteemitCryptoAcademy3 years ago

Hi, professor @wahyunahrul thanks for such an amazing class I've got more clue on how the market moves from whale accumulate and make significant movement in certain crypto pairs in the market thanks for sharing.

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

Before I will be explaining why small investors fear whales in the market I will like to highlight some event that took place in the crypto market earlier this year the crypto market has experienced a surge in crypto price which was referred to as crypto bull run lots of investors were buying and staking more cryptocurrency a key figure influencer that made the market boom and referred as one of the richest crypto investors with millions of followers turns out to lose faith in crypto when he announces that his company would no longer be accepting cryptocurrency stating bitcoin consume lots of energy which results to a lot of FUD among investors selling out their crypto holdings and the price of bitcoin started dropping.

With the highlighted above recent events that took place, small investors lost most of their crypto holding and saw their portfolio dropped all-time low.

In general, small investors fear whales in the market because the whales are majorly in control of the market flow.
The whales have the money to manipulate the market and make it dance to their turn when they want the market to go up they buy and when they want the market to go down they sellsmall invests can't precisely predict when the market will uptrend or downtrend they can only make analysis.

Since small investors can't accurately predict what the whales will be doing in near future they have to live with the fear of uncertainty.

Will, you be able to take advantage of the existence of the whale that is so feared?

For investors to take advantage of whales in the market certain things will be followed closely therefore small investors can take advantage of the whales market by using this method.

  1. Follow market analysis closely; there are different kinds of analysis in the market that investors will follow such as learning new marketable skills like how to read trading chart make technical analysis read crypto-related news online and follow big news platform to stay informed in the process information is power and with information, an investor can easily stay tuned on what's new and currently happening in the market.

  2. Social handles; another technique small investors can use to take advantage of the whales is by closely following their social handles to stay updated with what the whales are buying.

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). (Screenshot Required)

images (3).png

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I will be using KCS to elaborate on the whales market cycle KCS is ranked #95 according to coinmarketcap ranking it's a native token used by Kucoin exchange it allows users to make a discount transaction for holding the native coin.

Screenshot_20210628-174353.png

Using the above chart be explaining some important whales cycle phase

  1. Accumulation phase ( rectangular shape )
    I used a rectangular shape to indicate the phase of accumulation on the chart in this stage that market seems to be neutral as there are no much buying or sell the whales are watching the market closely and waiting for the perfect time to buy in.

  2. Uptrend ( circle )
    Using a circular shape to indicate the uptrend at this point the whale have accumulated and have watched the market closely they will therefore pump in large capital to buy more of the coin which will make the coin value increase rapidly.

  3. Downtrend ( rhombus )
    Here the whales begin to take profit by closing their order which makes the price of the coin start dropping in value.

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.

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If I had a million dollars as a whale in the market I will be investing/holding crypto coins with good market value coins that have good future projects to add significant value to society.

An interesting coin I would be investing in will be TRX tron it's ranked #24 in the coinmarketcap list it has special features like processing a fast transaction at a very cheap and affordable rate it's an interoperable blockchain that host another blockchain protocol like BitTorrent.

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. (Screenshot Required)

Screenshot_20210628-190127.png

Above is a TRX/USDT chart the circle part represents the accumulation phase here as a whale I will use my million dollars to buy more TRX tokens.

Buying more million dollars worth of trx will make the price of trx move upward representing the rectangle.

A whale accumulation phase will be the best phase to start buying more trx tokens.

All screenshot was taken from my kucoin trading app except otherwise stated.

Conclusion
Small market investors suffer from rapid market movement manipulation by whales for investors to avoid such pitfalls of losing their investment they need to closely follow market trends, learn market technical analysis.
Accumulate phase is where whales/investors start buying more tokens while at the uptrend phase there is buying pressure and a downtrend represents selling pressure.

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