Following whales — a story of self-learning and profit
First of all, this article is mainly about Crytpo Exchanging (CX) and some comparisons with Forex Exchanging (FX) as well as Stock Exchanging (SX).
We all come to this Crypto Currency market with the notion of high risk and massive potential profit. But we also forget about how fluctuated it is and powerful indicators cannot even explain the unusual phenomenon in this market. These dramas, which are well planned and executed, occur frequently on a variety of exchanges from the ones with massive trading volume to the ones having only worthless coins.
For those who have always been following traditional method to trade digital currency, you might simultaneously find the similarities and distinction between stock and crypto. However, it is the similarities that trick you to the tragedy of loss.
Successful traders in FX and SX consider indicators as the essential background for their trading. The game of manipulation has always been there. However due to the relation to financial institutions and governments, it’s hard for it to go clearly as it does in CX. Compared to the other two, CX has a relatively small trading volume as well as small market cap.
What the writer is trying to deliver is that only basic knowledge and indicators should be applied to trading in crypto market. The market is relatively small and manipulated by traders with financial power. As a result, indicators cannot assure the right analysis for traders when manipulation is everywhere in the market, from relatively medium exchanges (HitBTC, Bithumb) to top exchanges (Binance, Huobi, Okex). Whales activities happen frequently but each of them go so fast that those who cannot catch up with them, automatically assume them as traps.
However, following these activities is a different story.
Understanding manipulating mechanism, you are able to join the whales in their actions. Those who have acquired this skill can come up with entry point and selling target after some observation and market analysis. To lots of traders currently, they depend on signals from Crypto Telegram groups, which mainly drives people to nowhere. To become a “trader”, at least you need to know how to learn and make your own analysis as well as decisions.
Following the manipulation does not always bring back massive profit, but it has its own style. Once acquired the mechanism, traders are capable of making profit during downtrends and red — market days. A 1–5% of profit daily would surprise yourself when you realize it has been 30 days like that. And when 90 days or 120 days passed, your balance has already changed extraordinarily.
In a nutshell, with a chaos like Crypto market now, there are not so many ways for traders to survive. The bubble already exploded when BTC topped up $20,000 last year and its remnant is still in many traders’ portfolio. In either extreme, bottom or peak, following whales has always been a wise way, not only to secure your assets but also, to earn massive profit.
