This is why you should never Day Trade or actively Trade in the crypto world.

Doing day trading or actively trading crypto is a bad strategy because there are these 3 types of traders that will always own you in this unregulated world of cryptocurrency.

In this wild world of cryptocurrency, people don’t have to play fair here as they can profit at the expense of others. If you are doing worst than the market, then someone else is doing better and that is simple maths.

Those 3 types of traders who are doing better than you are:-


Under Rule 10b5–1, the Securities Exchange Commission (SEC) defines insider trading as “any securities transaction made when the person behind the trade is aware of nonpublic material information.” Many corporate executives use 10b5–1 plans to avoid accusations of insider trading. This rule allows insiders to be able to make predetermined trades while following insider trading laws as well as avoiding accusations of these as well.

Now over the last year we have seen many high profile cases of insider trading in the crypto currency world. Some famous examples are

Bitcoin cash pump prior to coinbase announcement where on December 19, 2017, Coinbase tweeted it would add Bitcoin Cash to its exchange. But before the announcement was made public, both the trading volume and the price of Bitcoin Cash suspiciously surged.

South Korean Financial Supervisory Service (FSS) regulators trading prior to restriction announcement where Korean FSS officials knew ahead of time that new cryptocurrency trading restrictions would be put in place. Yet, they still made trades before the announcement.

Examples mentioned above are just a few high-profile cases. Insider trading runs rampant in the cryptocurrency space where very often, prices and trading volumes will pump right before an exchange announces a new coin.


A whale is simply known to be an investor with enough capital to manipulate markets by mobilizing large amounts. Most crypto investors say a whale is similar to a boogeyman, they do all the trading in the dark and are responsible for large market swings everywhere.

There are some cases where strong evidences indicate that they are right. For example in 2013 a single entity was largely responsible for pushing the price of Bitcoin from $150 to $1000 in only 2 months. Also it was in papers recently that shows how a large amount of USDT was used to manipulate Bitcoin prices.

Pump and Dump Group Leaders

Now these are basically traders who buy a lot of cheap coins causing inflation in the price and then dumping it at a higher price.

This is how it works:

1) Find a coin that’s easy to manipulate and easy to sell i.e. a coin with low trading volume, strong community, small order books and advertising potential.

2) Leaders buy coins slowly and quietly trying not to affect the price.

3) Then Leaders spread their pump signal to their inner circle members who actually pay for the privilege of hearing early signals.

4) These people then start shilling on signal groups indicating investors that a pump is about to happen.

5) As the price rises P&D group leaders sell their coins at profit.

6) Then the leaders inform their inner circle to start selling.

7) Prices start falling and people who are late lose the game.

Yes this looks pretty foul play but this is it all about.

Still you can do something about it and that is top active trading because the more you try to time the market the more you open yourself up to options of getting screwed up.

We genuinely believe the average investor should just index the entire market. Hold a small piece of the entire crypto currency market as Indices has been proven to beat 95% professional traders in equity market over a 15 year period.