Understanding How Market Manipulation Works in the Crypto Market

One of the things I have known about the crypto market with my few years been involved in the crypto market is of the high Volatility. Trust me, the crypto market is really volatile and there is always a rapid price swings. But even with that, these two factors have been able to attract millions of investors all around the world because if you are been able to make proper use of the high Volatility, it can gives you more profit.

But even with that, I have come to o discover that the market is known for its various form of manipulation that happens in the crypto market and that is why it is really necessary for you to be able to understand how the market manipulation works and not only that but been able to deal with it and make it for your own massive advantage.

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First of all, let me first established that when we talk about market manipulation, we mean it is the attempt that interfere with the fair and smooth operations of the market and this is done deliberately. This is mostly used to push the price high or low in order to be able to deceive the investors.

When it comes to the crypto market, we have different form of the market manipulation. The first I will like to talk about is the pump and dump schemes. In fact I will say this is one of the most common type of manipulation in the crypto market. This type of scheme deals with inflating the price of a particular crypto which mislead people to think the crypto is pumping and so will deceive the investors to buy. Unknown to the investors, when it gets to a particular price, the manipulators sell off their holdings at a very high price therefore crashing the price of that crypto.

The second form of market manipulation is called the wash trading. Now this particular one might not be common to many of us but it is done. This is done by buying and selling of the cryptocurrencies involved using parties so as to creates this mindset that there is high trading volume and even demand for that crypto. By doing so, it will attract investors to invest in that crypto and this will allow the manipulators to be able to exploit that opportunity and make massive profit.

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The next one I will like to talk about before concluding which is quite popular id the Whale Manipulation. This particular one involves the whales. Whales are individuals that have the large amount of holdings of a particular cryptocurrency. Now due to the fact that those whales have huge holdings, they can easily influence the market because of their large market sales.

As I conclude, one of the ways to protect yourself from market manipulation is making use you do thorough research about a particular crypto before making your investments. Not only that but also you must be very careful of what I call the sudden price spikes and don't be deceived by high trading volumes as that can even be manipulation and you are not really aware.