CRYPTO ACADEMY:::: HOMEWORK FOR BEGINNER'S CLASS BY @wahyunahrul

in SteemitCryptoAcademy3 years ago

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Hello everyone,
I'm pleased to participate in this beginner's class. Thanks to our Noble crypto-professor @wahyunahrul for the wonderful lecture on this first week. Which focused on the WHALES ON CRYPTO-WORLD AND THEIR ROLE TO INFLUENCE IT'S VALUE.

This post will centered on the questions given as stated below and the answered will form the several sub-headings of this post.

  • BASED ON ONE'S UNDERSTANDING OF THE LECTURE, EXPLAIN WHY WHALES ARE BEEN FEARED BY MANY SMALL INVESTORS

  • WILL WE BE ABLE TO TAKE ADVANTAGES OF THE EXISTENCE OF WHALE THAT'S SO FEARED

  • FIND AN EXAMPLE OF A WHALE'S CYCLE ON A CRYPTOCURRENCY CHART AND DO A DETAILED ANALYSIS OF THESE PHASES

  • IF YOU A WHALE. WHAT TYPE OF CRYPTOCURRENCY WILL YOU LIKE TO TRADE ON

  • DO A KIND OF RESEARCH AS A WHALE WITH A PHASES ON THE CHOSEN CRYPTOCURRENCY,
    SHOW WHERE YOU WILL START TO BUY AND HOW TO MAKE PROFIT

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BASED ON ONE'S UNDERSTANDING OF THE LECTURE, EXPLAIN WHY WHALES ARE BEEN FEARED BY MANY SMALL INVESTORS

According to the context, A Whale can be a person or a corporation that have a huge amount of the cryptocurrency safely stored in it's wallet. With such a huge volumes of coins in their wallets. They exert strong influence the market value of such cryptocurrency in their wallets.

WHY IT'S ACTIONS ARE SO FEARFUL TO THE SMALL INVESTORS?

Cryptocurrencies business depends mostly on the person's stake weight and influence. Anyone with higher staked-weight also wields stronger influences on the market. He can dictate the market trends which involves the prices, demands and supply of the coins in the market due to it's "deep pockets or huge amount of coins" in his investment. In these ways, small investors are afraid of whales?

  • Buying Sections.

Whenever whale buy a coin. He buys in a very large volumes at the stipulated prices. Buying in a larger volumes creates "artificial scarcity" with a decline in supply thereby skyrocketing the initial price level to a higher ones making it difficult for small investors to buy at that initial price, a whale bought theirs. Only few buyers are happy at this period. Also refered to as bullish period.

  • Selling sections.

Whale can decide to sell his asset at an slightly increase in price. And make a huge profits. Unlike a small investors, who wait for huge price appreciated gap to make sales in order to make a reasonable profits.

Whenever a whale placed his/her/it's huge assets on market for sales. That coin in circulation will increased. The price will fall sharply affecting the value of the little assets of small investors. Whales will still make profits while it will be difficult for the small investors.
Even if the small investors decided to sell their investment, the whales will still buy them at this cheaper price created by their huge influences. This situation is called the bearish situation.

WILL WE BE ABLE TO TAKE ADVANTAGES OF THE EXISTENCE OF WHALE THAT'S SO FEARED

Although the actions of the whales in the typical market can be fearful, but can still be very advantageous. Understanding their existences, is a key to turn around that's fearsome situations into a wonderful and palatable market opportunities.

Technically, one can dictate the phases at which the Whale's behaves and acting Accordingly. Makes one an astute investors. During the initial phases when the whales accumulated their assets at a very cheap price can be known, buying at that price too although very few coins Accordingly to one's purchasing power and selling them at a slight increase especially in the artificial scarcity created by whales can still makes profits too.

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Assuming there is a role of Whale is been played in the market above. Within seven hours, the whale is busy accumulating #steem at very low price of $0.24 and dip down at the point, that I marked "initial price level" at 0.23. any investors including small investors can buy at this low price too. Assuming that he bought 100 steem at that price. Which will be equal to $23.

However, from the chart above, there's a sharp increase in the market value of steem since the Whale have started to sell their assets in bit by bit. At the point where I marked "increasing price level as the price of steem is now at 0.28. that investors can sell his asset at this point. He will make profits too. Selling this 100 steem at 0.28 will be $28. The net profit will be $5 at this short period of time.

FIND AN EXAMPLE OF A WHALE'S CYCLE ON A CRYPTOCURRENCY CHART AND DO A DETAILED ANALYSIS OF THESE PHASES

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According to the chart above, it's a market analysis of Steem/BTC. Steem is one of the Crypto-currencies that is ranked #257 by CoinGecko.

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ANALYSIS OF THE CHART

The behavior of the whales resulted at the four identifiable phases stated 1, 2, 3 and 4 in the chart above.

1 ACCUMULATION PERIOD.

At the period, the chart moves horizontally or side-ways showing that the price is staggering at a very low ranges. because the whale keep buying and selling of the coin in bit. But they are buying enough of coin #steem at cheaper price to buy in a larger quantities. After many other investors have been attracted too to sell their assets.

2 UPTREND PERIOD

In this stage, there's a increasing value of the price. There is a climbing effect too because the whales buys their coins in Large volumes at once resulting in a sharp increase in the price of the coins. But this sharp practice of the whales here deceives other investors into buying the coins that the whale already have in Large stocks. Due to these buying sprees, bullish period set in where there's more buyers than sellers.

3 DISTRIBUTION PERIOD

This is the third phases in the Whale's cycles of market behavior. Here, at a set price target, the whales started to sell their large volume of coins to makes reasonable profits. Other investors might not know but busy buying at set price leading the chart graph to be horizontally because the set price of the coins ranges insignificantly.

4 DOWNTREND PERIOD

This is the downward movements of the chart graph. It is as a result of the panic psychology created when other investors realised that the whales have already finished selling their coins and started to sell their own. Many sellers and many coins will leads to the decline of the price and the bearish situation will occur.

IF YOU A WHALE. WHAT TYPE OF CRYPTOCURRENCY WILL YOU LIKE TO TRADE ON

I'm a whale at my level. I will expand my investment interest with huge capital. I will be happy to invest a huge amount of money on crypto. I will choose steem.

REASONS.

Although one of the penny crypto-currencies. But it have a great potentials.

Technically, it have a great appreciated rate when compared with other penny crypto-currencies within it's rank.
It's transactions fee is very low and have a good trading pairs with BTC, ETH AND TRX.

Accumulation of this vital coins will be used to power up my wallet at steemit. Having a huge #sp here have a lot of benefits.

Having a huge amount of steem as a whale will also be important to sustain a viable steem ecosystems and enhance their performance.

DO A KIND OF RESEARCH AS A WHALE WITH A PHASES ON THE CHOSEN CRYPTOCURRENCY,
SHOW WHERE YOU WILL START TO BUY AND HOW TO MAKE PROFIT

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Using the chart above for detailed analysis and fundamental studies of this coin, steem. I will behave like a whale in this stages labeled 1,2,3 and 4.

Remember that, I'm behaving like whale to make more profits too

  • 1 ACCUMULATION PERIOD

Here, I will be buying and selling the coin at a small fractions. I will not make a major moves of buying or selling more of the coin at once during this stage. I will also try my best to maintain the price level with insignificant ranges.

  • 2 UPTREND PERIOD

Here, I will buy the coin at huge volumes at once when others are not aware that I have that coin in large stock already. They might waiting for supposed "right time" which does not exist. That my move will lure some to buy more too leading to sharp increase in the price.

  • 3 DISTRIBUTION PERIOD

Here, I will start to sell my asset at a set price target when other will are still buying. Upon realization this, I have make a huge profits.

  • 4 DOWNTREND PERIOD

Here, there's a bearish situation as a result of many other investors have started to sell their assets at ever declining price. It's my favorite Time to be selling more by bit and buy more by a bit until the price level is flattened. The cycle starts again.

CONCLUSION

Understanding the market trends of a particular coins and their subsidiaries, will not be complete without understand the exact behavior of those whales. Any whale on those dominant crypto-currencies(i.e, Those coins ranked within tenth in market) can exert a strong influence on the coin of interest, if not the entire crypto- market. The influence here is evident in the market price of the coin as the whales decided to buy more or sold off his a fraction or the whole of it's or their assets.

Moreover, Whale's behaviors and moves are silent and descreetly . It's actions can be likened to the behavior of a Composite man of Wyckoff theory. These actions of his/her/it heavily influences the market prices of the coins and can be determined technically on a chart.

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Intense topic you got there... Hoping you score well @sammylinks

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