Crypto Academy / Season 3 / Week 1 - Homework Post for Prof. @wahyunahrul

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

The small investor has very limited possibilities playing in the market. He cannot get rid of whales but he can recognise and understand whales manipulations in order not fall in them. I guess If you learn to watch the whales, you can trade like they do and make high profits with them. Whales makes big deals and thanks to the whales, the cryptocurrency exchange rate changes.

I think in order to take advantages of trading itself as well as from whale actions, we must understand two very simple psychological aspects of human beings:

1. The very first one is called greediness and then we see that the price is rising.
2. The second one is fear and you will notice the price is falling and people panic sell.
   We must remember that the price can not constantly be bullish as well as it cannot be always bearish. Everything is cyclic in this world so we are moving to the next phase of homework.

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)

PHASE1 -ACCUMULATION

The accumulation phase begins after the market has fallen to the lowest possible level in a certain period of time and the large players as well as small investors slowly accumulate their positions at the lowest prices. Market participants think that "there is nowhere lower" and buy up assets at attractive prices. It is important to note that the overall market sentiment in the accumulation phase is still rather bearish.

PHASE 2- Absorption -Upper Trend

The phase during which a slow but steady growth begins. An uptrend is forming. More and more people are interested in buying an asset. Most of these people are traders who are looking for the beginning of a trend (lows and highs are higher) and are ready to enter the market.

PHASE 3 - DISTRIBUTION

Distribution phase means that the whales will start selling their assets to make profit The process will be slow and the market will show slight resistance. Whales goal is to sell at the prices optimal for them. At this phase many people still continue to buy so whales comfortably sell at a slow pace and the line is horizontal.

PHASE 4 Downward Trend

A market will start experiencing a fall in prices is called bearish. Normally, at this phase the whales already sold everything they planned to sell at the targeted price. And this will cause a price decline at the very beginning causes panic among traders associated with their positions. Small traders then begin to sell assets in bulk, take short positions, and try to exit the market. During this time, many traders are affected by the panic. They believe that the price will continue to fall and only then the situation will improve.

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.

I wish I was a whale and could buy some chia coin. I think that exactly now the market is most attractive for big investors. As the market is new and the coin was created by a very reputable team. It was created by Bram Cohen, the best network engineer who created Bit Torrent. The news about chia are very promising so as a whale I would risk and invest in this new coin.
The team also includes the people behind the creation of the largest online music and home goods retailers eMusic and Overstock, Gene Hoffman and Mitch Edwards. In addition, the contributors include the Andressen Horowitz venture fund, which is affiliated with Coinbase, Pantera Capital (venture capital company), Kenetic Capital (proprietary trading), Sequoia Capital (venture capital fund), Polychain Capital (investment company) and others.

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)

The area I circled black is now and as a whale it's exactly where I would enter the market. As the coin was up and that was just the potential high of it.
Limited number of coins

Whatever one may say, if the project is interesting, over time it will gain popularity among users. We know that like Bitcoin, Chia has a limited supply of 21,000 coins. Limited Supply is attractive aspect of any asset as it automatically gives more value and guarantees that in a long run just limited number of people can have it.

The phase when whales are most interested in coin is accumulation. The big whales can see the perspective of a coin. The miners can easily enter chia now knowing that supply is limited. Thus, the number of free, not mined coins will decrease over time, which will lead to deflation. As Crypto FOX writes, deflation increases the purchasing power of a cryptocurrency when it creates a form of scarcity.

As the professional crypto whales believe in this coin and its creator team. A lot of money is already being invested in it. The initial price was really high. Moreover, there is already a shortage of HDD and SSD in China. It is likely that a local shortage will grow into a global one.
Proof of Space and Time - two-step block authentication. In fact, it should be like this: the three "most significant stories" found by full nodes will be passed on to "farmers", not miners. Thus, the "best proof of space" is found, after which the PoST servers begin validation and publish the verified block to the network. So large or individual miners with large powers will lose their advantages, as is happening now with BTC. And the time of real, effective decentralization will come. If I act as a whale I would buy now and hold the assets in the long run until we will not reach distribution phase.