If one observes the markets know that there are different actors, and between them we have whales in crypto. The reason that the call to bigger players within the world of cryptocurrencies, with a high level of influence on the same, is not in vain. For example, whales are hunters that are smart. Some feed on small fish and even seals, and to do this they use strategies pretty smart. Now, imagine that happening with the whales there are in the world of crypto… To let you be aware of which are these strategies used by the whales crypto, especially if you’re iniciándote in this world, here in CriptoTendencia we bring you a summary of the same. This information may be useful to you especially if you are looking for to understand the relationship between the activities of the whales crypto and fluctuations in the price of the cryptocurrencies in the market.
Pump and Dump: Strategy #1 of the whales crypto
The whales crypto apply this strategy a number of times. That is why you must know it very well. One of the most common tactics is to pump and dump. The whales have enough funds to pump artificially (pump) the price of a certain currency. Because there are no restrictions on the exchange of cryptocurrencies, this happens a lot. The tactic is simple. A whale or group of whales crypto will begin to make large purchases. This will result in a large increase in price and huge candles green in the graphs you observed. Sometimes the purchases will extend over a period of days. Something that results in a gift is which the price increase caused is usually immense. With this increase in price, it attracts new investors. The cause behind this is the “Fear of Missing Out”, or a fear of losing the chance. Demand naturally grows, and with it continues to increase the price of the criptomoneda in question. All of this because of the actions of the whales crypto. When the margin of a Pump is large enough, the whales begin to sell. This happens in waves. A wave will maximize the benefit that a new investor will think that it is just a temporary drop. In the end, the whales are going with a massacre and the people who went into a time of “high standing”, caused by the whales, is left with a considerable loss, at least until the currency again to increase your price. To be able to better monitor this strategy, you should follow the reports of Whale Alert, the graphics of sail of the price of the criptomoneda you are interested in for the moment. In addition, if you think convenient, you can read our weekly reports of the activity of the same. An example is this. This is the first step to understand the whales crypto. However, there are still some knowledge, pending which we will discuss in next articles. Stay in the loop! The following two tabs change content below. A degree in Liberal Studies from the Metropolitan University. Lover of innovation and a believer of the technology for the future.