Hello everyone, I am Kimi. In the turbulent ocean of cryptocurrency, those "whales" with huge capital often secretly manipulate the market for their own benefit, putting us small traders at a disadvantage. How do they do it?
1. Bait-style breakthrough: Whales are good at creating false price fluctuations to attract us to enter the market. They deliberately push the price above a certain important resistance level, tricking us into thinking that the market is about to break through, and then blindly chasing the rise. However, once we enter the market, they quickly sell their chips, causing the price to plummet, catching us off guard.
2. Panic selling: Whales are also good at taking advantage of people's panic. They will sell a large number of tokens in a short period of time, creating market panic and causing prices to fall sharply. Many traders may trigger stop-loss points in this situation, resulting in forced liquidation. When the price falls to the bottom, whales will buy back tokens at a lower price and make huge profits.
3. Liquidity hunting: In the cryptocurrency market, areas with high liquidity often hide huge risks. Whales will look for these areas and place a large number of stop-loss orders in them. Once the price reaches these areas, it will trigger a large-scale sell-off, causing panic in the market to spread. Whales will take the opportunity to snap up cheap tokens to further expand their own interests.
In order to protect ourselves in this game with whales, we need to do the following:
Stay alert: Always pay attention to market dynamics and the movements of whales so that you can adjust your trading strategy in time. Set stop loss properly: Avoid setting too narrow stop loss points in areas with high liquidity to avoid being affected by whale manipulation. Diversify your entry: Do not invest all your funds in the market at once, but diversify your entry to reduce risks.