How Whales Manipulate the Crypto Market

A lot of people have actually been frustrated due to the way whales always manipulate the crypto market and even beyond that. The world of crypto can really be funny sometimes and even if you do not understand how the market works, it can really be difficult for you actually. The crypto technology keeps advancing and keeps developing rapidly beyond our expectations actually.

A lot of crypto traders always get frustrated when it looks like after their technical and fundamental analysis, the market still goes against them. Let me start by saying that whales are those huge investors that control the market.

They can be institutional investors or even crypto exchange related also. There are some manipulation systems that those whales actually manifest now to control their market for them. The first is pump and dump. Pump and dump is really common nowadays and even beyond.

Where the market goes up suddenly due to some group of whales buying a particular coin, now the average trader will now feel like the market has actually recovered massively. When the price has actually gone up massively, those whales will now sell to actually cause a massive dump that will crash the market.

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The second system that the whales actually manifest is what I called the spoofing and the wash trading. This is also very common. Spoofing is when a particular whale placed a massive buy order on the market so that it will create this illusion that the market is about to pump and suddenly started to dump massively and just before the market get dump, they remove their sell order.

Then the aspect of wash trading is also very common. This is where some groups of whale jeeps buy and sell a particular asset so that some false attention will be created and then after all, those whales will now dump that particular coin.

There are negative effects all of these things are actually causing. The manipulation of the market actually makes the market so volatile and as time goes on, it can be false signals, break trust and Manny more. These always affect the decision of smaller investors and at the end of the day leads to wrong decisions at the end of the day.

Can it actually be stopped? Well I don't think so because the whales are actually controlling the market much more than we can ever imagine of so it will be quite difficult for you to control the market or even eliminate the whales. You can just study the market to make sure things work out well.