Crypto Academy/Season 3/Week 1-Homework Post for professor @wahyunahrul-Topic:Whales -The driver of Cryptocurrency Value.

INTRODUCTION
It’s a great pleasure to be part of this wonderful contest and great appreciation go to @wahyunahrul for coming with such a brilliant topic for us to understand and analyze the topic according to the way we have understood the topic lecture from him

1). Based on the understanding that you've gained from this class, explain why whales are so feared by small investors?
First and foremost I would like to explain the meaning of whales

• Whales
  Whales refers to the people or communities who are able to control the value of cryptocurrency

whales are so feared by small investors because of the following reasons

Whales are feared by small investors because when whales make trades,they often do it in large amounts for example in million dollars and these large amounts can lead to price changes that’s to say when large orders are placed, they can move the price of the crypto currency involved way up because it sends a signal to the market if that asset being traded and it will be at a high demand

Whales are feared by small investors because they hold enough amounts of cryptocurrency that they have the potential to manipulate the currency valuations

Whales are so feared by small investors because by having a small number of crypto currencies, these whales can not easily control the movement of the value of cryptocurrency, this will happen because the value of of cryptocurrency will not move according to the market demand and the amount of supply circulating
If few people want to buy a cryptocurrency, then the value of the crypto currency will decrease and if few people want to buy a crypto currency, then the value of the cryptocurrency will decrease and if few people want to sell a cryptocurrency, the value of the currency will increase and if the supply of a currency has a limit, then the cryptocurrency will easily increase in value and if the supply is unlimited then the value of the crypto currency will be difficult to increase

Whales are feared by small investors because when whales sell the cryptocurrency , they own it because the number of cryptocurrencies they sell is very large and it makes the value of the crypto currency experience a very deep decline in a short time

Small investors fears whales because these whales can drive the price of a cryptocurrency whenever whenever they want and the own existence of whales has become something that small investors fear that’s to say that the small investors can not easily drive the price of the cryptocurrency at any time they want

Small investors fear whales because their movements have out sized impacts on the bitcoin market through increased volatility or decreased liquidity

Whales are so feared by small investors because the concentration of wealth if it sits unmoved in an account it lowers liquidity which in turn increases price volatility

Small investors fear whales because if supply is concentrated amongst a few wallets, there is a risk of a price crash of that coin when the wallets are sold and this scares the small investors

Whales are owned by only large investors who own large numbers of cryptocurrencies and have great dominance in the crypto currency they hold therefore this scares small investors

Small investors fears whales because when whales sell there cryptocurrency that they own, they sell in very large amounts and this will make the value of the crypto currency experience a deep decline in only a short time there fore the market chart will be more dominant in red than in green

Whales are feared by small investors because many of the whales who have large amounts of cryptocurrency do not want to reveal all the activities they do so that small investors can learn from them.

Small investors fear whales because they are expensive to manage

2). Will we be able to take advantages of the existence of the whale that is so feared?
Yes we can be able to take advantage of the existence of the whale that is feared in the following ways

To take advantage of the whales we require to get to know personal risk profile for-example we should first identify our own risks profit whether we don’t fear losses if we are people who like high risk investments, then we should invest in whales

Do more research before investing in the cryptocurrency that’s to say never invest cryptocurrency with out having some knowledge or ideas about it because you might end up losing even the little capital or money you have

You should not only invest in one cryptocurrency, involve yourself in as many crypto currencies as possible and you should have detailed research and understanding of each crypto currency that you involve yourself or you invest in and plan on where your money can be invested and this way we can bit the whales in there own game

We should learn how to analyze the movement of whales from cryptocurrency charts and while trading one should not aim at making big profits but should aim at achieving the desired or targeted profits in this way we will be able to take advantage of the whales

We should also analyze the mindset of the whales in this way we can take advantage of the whales

Whales have a huge impact on the crypto currencies that’s to say the value of cryptocurrency will follow market demand and the amount of cryptocurrency supply in circulation I.e. in the low of demand, it states that the higher the prices, buyers will demand less of an economic good and the lower the prices the buyers will demand more of the economic good
The law if supply states that when the price paid by buyers for a good rises, then suppliers increase the supply of that good in the market

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Whales provide asset manafemebt serviced owned by investors who are members of the platform which makes crypto currency one of the assets that can be used for investment for investors and small enterprises can use this as an advantage

Whales are able to move the price of bitcoin which is the most expensive currency so we can take an advantage of this by involving ourselves in investing in bitcoin

3). 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)

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I will choose Chainlink for my assignment and these are my detailed analyses phases on the Chainlink currency
First and foremost whales occur in four various phases which include accumulation, Distribution, uptrend, downtrend phase
Whales are very wise people they will never make a move that is not profit making that’s to say they are always targeting currency that will make make them acquire the desired profits
In the accumulation phase, the small investors have a chance not to sell their coins to the whales or large investors so the whales will not devalue the market because they have begun to accumulate
In the distribution phase you notice that there is a decline from the uptrend phase this indicates that the whales have begun to sell there coins ie the small investors should also sell there coins before they are devalued

4). 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.
As a whale I would like to invest in the Chainlink crypto currency but before choosing a cryptocurrency one should consider various factors before he or she invests in any crypto currency

• knowing the risk
• going for long term investments
• checking legitimacy
• understanding the value proposition
• Doing proper research about the crypto currency that’s to say whales usually invest in crypto currency which can influence and have high values
• High volatility

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Chainlink cryptocurrency is the best performing currency in the market because it gives major assets such as bitcoin and ripples a run for their money

I choose the Chainlink cryptocurrency because the blockchain offers security and it’s decentralized hence good for security and maintenance integrity

Chainlink is highly volatile because the assets of the Chainlink are always recording huge gains

Ways of investing in Chainlink crypto currency
Hodling link
This is where you buy link and store it in an off exchange wallet for a long time

Trading link
Here you either make short term profits when the price goes up

Invest in Chainlink
This helps you to get monetary gains when you invest in Chainlink

5). 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)

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Using the Chainlink chart has shown above I will make profits from the chain link as explained below

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• Accumulation phase
  From the screenshot above you can see that price of a Chainlink moved from 10 dollars to 8 dollars.In August the dollars increased at 13.8 dollars , as a whale I would start investing or buying crypto currency in august because I would have accumulated enough coins by September

• Distribution phase
  When the coin value rises enough to a point in which I can make enough profits, I will begin to sell my coins in various transactions the market will be stable since am selling coins in a moderate amount giving me the opportunity to sell off most of my coins because small investors will continue to buy since am selling in large amounts

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*Uptrend phase
The price of the coins begins to increase because the more I accumulate the lower the number of Chainlink currency in the market therefore at around September I will begin to buy the Chainlink crypto currency because it will be of more value and increase in the price of the coin

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• Downtrend phase
  The more the market becomes unbalanced is the more one can sell the coins therefore when small investors get to know that I have sold off most of my coins they will buy and also sell and the coins will be at a higher price and I will stop to sell because I could have acquired enough profits
  I will wait for the coins to go below the price I bought it at first and if it’s low I will resume and start buying coins once again

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In conclusion whales are only for large investors who may not fear the risks that may occur due to investing in the various crypto currencies
Thank you for giving me the opportunity to participate in the contest and the above mentioned is my own understanding about whale