Q How is the cryptocurrency market manipulated by whales?
Whales are large investors who own huge amounts of cryptocurrencies. Thanks to their financial power, they can influence the market in several ways, including:
1. Pump and Dump:
They raise the price of the currency by buying large quantities (Pump).
Then they sell intensively at the highest price, which leads to a price drop and losses for small investors.
2. Rumors and psychological manipulation:
They spread news or rumors to influence traders’ feelings, such as promoting a big rise or an imminent collapse.
3. Fake buy/sell orders:
They place huge buy or sell orders without intending to execute them, creating a false impression of supply and demand.
4. Liquidity control:
They control the movement of liquidity within a particular exchange, making it easy to manipulate the price.
Therefore, always be careful and avoid making decisions based on sudden movements or unconfirmed rumors. Understanding and analyzing the market is your most powerful weapon.
