Cryptocurrency Investments Part VII. Cryptocurrency manipulation.

Hello everyone,
Today I want to talk about manipulations when trading on the cryptocurrency market:

Major players:

1. Large HODL. They managed to purchase in the most embryonic state of the market at ridiculous prices. If one of these players “merges”, the market can seriously stagger.
2. Miners, mining pools or pool syndicates.
   These guys built entire empires on cryptocurrency. They are not prone to speculative actions and, as a rule, their vital interest is that the price of the crypto continues its growth.
3. Large traders. Most people have little knowledge of all the intricacies of exchange business and prefer to entrust their funds to more experienced and successful traders in the cryptocurrency market. As a result, large, active players with serious funds appear on the site who are capable of moving the market in the moment.
4. Cryptocurrency exchanges. Since the cryptocurrency market is unregulated, hands are untied at cryptocurrency exchanges.
5. Large investors. It is these types of players that are one of the most dangerous in my opinion, since they can radically affect all market participants, including the previous four.
6. Well, we are with you, with $ 10 in your pocket.

Let's dwell on the manipulations:

1. Large players usually always take profit positions in the region of 30 - 40% when trading top violas.

2. The market price of any altcoin almost certainly already includes the games of major players, that is, most likely all the news that will be released later are already included in the price.

3. When placing orders, never sell on the market, slippage is possible.

4. Wash trading - he placed an order himself, he closed it. As a result, volume is gained.

5. Market making - a new company pays to maintain the rate of its asset, which has just been put on the stock exchange.

6. Investors or speculators who made the PUMP altcoin, most likely will not return to it, but will switch to another alt.

7. OTC transactions that Coinmarketcap does not take into account - trade in cryptocurrency for millions of dollars.

8. Real trading does not go all over the circulating supply. That is, if you take BTC, then most likely the trade is 1 - 2 million on all exchanges, therefore, given the fact that many exchanges provide access to trade with leverage - the rate is very manipulative.

9. It is better if you enter a trend - any (in a bear or bull market), and not day trading.

10. If you do not have time to enter the position on the altcoin - everything is OK, come back later, since you can only control your entry and exit points.

11. Exchange wallet - your unrealized profit, only transfer to personal wallets.

12. Layering - traders start buying from a large order, while Layer cancels the order and plays short, or puts on a purchase at a much lower price.

13. Level retention. The task is to suppress the bearish mood for corrective movements. Beginners see the beginning of the pattern, and pick up the upward movement. At this very moment, the whales begin to close the longs and go against the mass.
    This tactic is used to draw patterns / to accumulate "mass" / to create resistance and support levels.

14. Another manipulation is when a very large order is placed so that it is visible to those who are at the “front line”, but at the same time, at a fairly strong distance.
    This order greatly increases the volume of bid (bid), which affects the general mood of the market, showing a bullish mood.
    If the desired effect is produced, the market goes up until the time comes to merge at the price that the manipulator determined in advance for itself.
    In the event that the market has become stubborn, then the manipulator can remove the order at the touch of a button, thereby releasing the market into free fall. At this moment, an especially insidious whale unfolds 180 degrees and puts the same plate, only for sale, thereby pushing the market into the abyss, in which it will already buy the market for a penny.

15. Drain.
    Check for “lice” - as a rule, such a drain occurs after a queue of pumps in a very hot market.
    Firstly, this allows the whale to replenish resources for the new pump and partially take profit.
    Secondly, this is a test for the stability of an artificially created trend.
    Trend reversal - this drain is much less common, and is needed in order to expand the market at the required point.
    As a rule, this is done to create a resistance point in the right place or to form the necessary pattern.
    "Inflating" the trend
    This is a manipulation that is inverse in meaning to the previous type and is aimed at additional pressure on the market during the corrective movement, neutralizing all attempts to rollback.
    This drain is insidious in that the manipulator can feed the bears with small volumes.

16. This is a huge, one-time execution order at a price that is obviously worse than the market.
    As a result, this money supply rakes all small orders in the right direction and removes all the “stops” of infrequent traders.

17. Volume cheating is another manipulation that can often be found on the market.
    Surely many of you have already encountered such a phenomenon when an order for a significant amount goes either to sell or to buy, is constantly redeemed and sold, but what is the meaning of these actions the first time is difficult to understand.
    If you dig deeper into the calculation formulas of popular indicators, the answer pops up.
    All take into account several or all 5 variables, such as:

• period opening price
• period closing price
• price of the maximum for the period
• price of a minimum for the period
• volume for the period
  By placing orders and redeeming from oneself, the manipulator affects all five indicators:
• it abnormally greatly increases the trading volume
• it does not allow the price to move
  In any case, the point is that a certain key point is formed on the chart, which is the key to the local trend reversal.
  A huge volume will certainly show high market interest at this level and draw on oscillators that take into account trading volumes and volatility - divergences, and, therefore, show a reversal signal.

1. Shaking is also one of the common tactics to remove unnecessary “passengers” from the train before moving in the right direction. The market moves in a rather narrow corridor.
   Following the rules of classical technical analysis, we are waiting for breaking through, in order to determine the direction of movement and enter during a rollback.
   At the beginning, we see that the breakdown went up, and after waiting for a pullback to the upper border of the channel, we begin to enter a long one, however, instead of continuing to grow, it falls down closing our stop deals.

2. And of course, it is necessary to take into account the fact that now a huge number of robots are trading on exchanges.

You can see the full range of investments in cryptocurrency here.