What trading strategies do Bitcoin whales use?
Cryptocurrency whales stand out from ordinary investors because they have a long-term view of the cryptocurrency market and often employ advanced investment tactics.
Market Manipulation
Large Bitcoin players sometimes engage in inflation and deflation schemes, which involve buying large amounts of Bitcoin at once to drive up its price and then selling it for a profit, leaving other investors at a loss.
Additionally, they may start rumors on social media to increase interest and raise the price to attract smaller investors to join. Bitcoin whales eventually sell, causing price drops and losses for small investors.
Accumulation
Whales can gradually accumulate Bitcoin by making calculated purchases at low prices or during market downturns. Over time, they increase their Bitcoin holdings by taking advantage of opportunities to buy large volumes of Bitcoin at favorable prices.
Long-term Holding
By holding Bitcoin for an extended period, whales can protect themselves against inflation or benefit from the potential long-term increase in the value of Bitcoin.
Diversification
Beyond Bitcoin, some whales diversify their cryptocurrency holdings by investing in other digital assets to spread risk and potentially gain profits from various areas of the cryptocurrency market.
Short and Long Hunting
When Bitcoin whales foresee a price decrease, they may use short-term strategies to sell large amounts of the cryptocurrency, driving away smaller investors and pushing the market down further.
Conversely, they may use long-term strategies by strategically acquiring Bitcoin over time, which will generate positive momentum and encourage smaller investors to join the market, thereby increasing the price.
Stop-loss Hunting
