Beware of Cryptocurrency Whales Manipulating Order Books!

Someone shared this with me.

And I figured it is better to spread awareness to our STEEMIT community here about whales manipulating the market through such underhanded (but smart) technique. I've noticed this happening in VeChain.

That's why several hours ago there was a rally after a long dip but immediately followed by a huge dip.

This doesn't just occur in selling, they are also doing this in buying too. What they will do is they would place a huge massive limit buy order.

It can be as huge as 10-x00 BTCs. When people sees this they think there's some market rally going on or assuming there's a strong support line behind them, so everyone starts jumping in to buy.

The whale then cancels the limit buy order. Then when it is rallying a huge sell would occur afterwards (most probably by the very same whale whom make the fake buy order) to get a quick profit.

I've noticed this happening to the newly listed coins in Binance - Vibe and RLC.

I saw this happening a few hours back when I was having my break. Unfortunately, I didn't had the chance to capture a screenshot of the order book in time. But here's the aftermath:

They're playing market psychology with us so don't fall for it. Don't let your emotions cloud your judgement and always stick to your plan (buying or selling at limit orders).

If you're planning to sell and you see this happening, HODL and don't sell below it.

If you're planning to buy and you see this happening (that is, a sudden huge limit buy orders in the order book), DON'T BUY YET! Wait.

Spreading awareness. Good luck.