Predatory whales in the cryptocurrency market are large investors or entities that own massive amounts of digital currencies, giving them the ability to significantly influence prices through calculated strategies. They use several methods to manipulate the market and achieve huge profits at the expense of small investors. Here are some of the most famous tricks:
1. Pump and Dump
Whales buy large amounts of low liquidity cryptocurrency, quickly raising its price.
After small investors are drawn in by greed, whales suddenly sell their assets, leading to a price crash and heavy losses for others.
2. Spoofing & Order Book Manipulation
Whales place huge buy or sell orders with no intention of executing them, giving a false impression of market direction.
Once other traders react, these orders are quickly pulled.
3. Stop Hunting
They deliberately push the price to a certain level to force traders who have set stop-loss orders to sell, then buy the assets at lower prices.
4. Liquidity Squeeze
They create sharp price fluctuations, leading to the liquidation of small traders' leveraged positions, increasing their profits.
5. Whale Cartels
Sometimes, a group of whales collaborates to manipulate the market by coordinating buying and selling operations.
How do you protect yourself?
Avoid chasing prices during sharp uptrends.
Watch for abnormal trading volumes.
Use stop-loss orders wisely, away from obvious levels.
Do not trust rumors or random speculation recommendations.
Do you have experience with these tricks or would you like to know more details about one of them?
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