If there are any major risks in the cryptocurrency world, then with no doubt, they are crypto whales. There are more than 100 crypto holders, which are termed as ‘whales’. It is all because of the quantity of crypto being hold by them. And when such power is bestowed on them, then just like a marine whale, they make tidal waves into the crypto market and start manipulating the crypto prices with maximum volatility. The unequal power these whales generate is enough to make huge problems in the crypto industry, especially when it comes to high volatility and manipulation of digital assets prices.
This leads to the distancing of regular investors. But no matter how wider space these crypto whales might acquire, there is a simple remedy to ward off these big players. All you have to do is distribute your assets and be attentive to crypto whale alerts. But we should observe the changing aspects influenced by whales, and also the way they manipulate the crypto market.
Causing Sales Fear
Akin to the marine whale, the big players also wander around deeply to the core of the crypto market. For example, if you see a bitcoin whale alert, then it indicates some manipulation by these crypto whales responsible for a drop in Bitcoin price, despite no current happenings that could lead to such downside. So this is all happens when the big players put so much effort.
The drop in price causes further sell-off, affecting the HODLers who observe the price swings.
All they do is sell off their portion to remain secured. It is a wrong assumption if you think that crypto whales are aware of what is unknown to many, and with a prediction of news, they smartly initiate in asset selling. That is the approach of these whales they play for. These whales cleverly focus on letting the price down and then they can strike their manipulative dice, by purchasing the similar assets at a very least price to smartly gain from end recovery.
This technique is famously called as ‘rinse and repeat’. Crypto whales always carry an aim for price dropping of cryptocurrency, to generate fear of selling. For a while, they become relaxed and wait for the opportunity, as a market struggle to the top, and they purchase similar assets once again. These whales even keep their tactics concealed and engage in selling and buying cryptocurrency to various crypto exchanges.
When you observe a dropping in price in a mere few minutes for no exact reason and then sell off your assets in the prediction of fake news, you fall into the trap of scam.
How To Liberate Your Crypto From Crypto Whales
Such scam is not new to cryptocurrency but does affect the crypto industry. When Bitcoin was in dollars, some people preferred to buy it in any remarkable quantity you invested earlier. Now it has become a major part of the circulating supply. In that way, it would be not easy to gain the status of crypto whale very simply. Currently, it needs millions of dollars to reach the status of Bitcoin whale. And it is not simple.
If you want to subdue crypto whales, then there are two factors you need to follow: fund distribution, and the other is noticed. When new people purchase Bitcoin, the percentage held by these big players will start diminishing. This means there will be a lesser number of whales. Although, it is very complicated to snatch a cryptocurrency from these whales, so what we can do is to buy from them and then don’t look back at them for selling.
Whenever crypto whales prefer to create a fear of selling, all you have to do is notice the activity, incline to it, and purchase. Purchasing their asset will put a stop to their dramatic drop responsible for creating fear in the markets, and it diminishes the relative holdings of the asset. By practicing this tactic, it will lead to cause balance in the market and will cause minimal whales, who are smart enough to manipulate crypto markets at their finger. This would certainly be a message for regular investors that crypto trading has started experiencing new change. So this is how you can challenge the crypto whales.