Crypto Academy / Season 3 / Week 1 - Homework Post for @wahyunahrul
WHALES IN THE CRYPTOCURRENCY WORLD
At the point when we hear whales, the first thing that always comes to mind is the aquatic whale, which cannot be said for the whales in cryptocurrency, whales are the sole regulators of the market patterns.
What's the significance here? This implies that they are investors who have an enormous measure of interests in a specific Cryptocurrency. To be a whale, the measure of interest in such a Cryptocurrency should be altogether enough to have impacts on the cost of that token.
The main objective of every investor or trader in the crypto world is to make as much profit as possible, nobody wants to make losses, and if there were to be losses, it should be as minimal as possible so as not to disturb the investment made on a token.
As small investors, or let me say as a beginner who is new to the market; one may not easily know the movement of whales and if one is not a careful observer, one may not be able to predict the movement of whales in the market. Whales will not tell anybody when they want to make a move, and this is one of the reasons why a trader need to follow up with the news, trends, charts and other important information relating to the crypto markets and the cryptocurrencies.
Obliviously, to my very own reasoning and due to what a companion advised me to do, that was the motivation behind why I put resources into a coin. I didn't have the foggiest idea about the whales were performing and were there laying out up snares for half knowledge crypto investor like me. Furthermore, when they at long last eliminated their benefit and the market went bearish, my own little venture was adequately not to keep the cost of that token.
So presently, little financial backers are consistently and significantly influenced by the activities of the whales in the market on the grounds that regardless of the developments of whales, they are consistently beneficial and little investors will consistently be ones to experience the ill effects of the means taken by whales.
You may be wondering, is there any way to make profits from this so called feared whales? I won’t necessarily say yes, and I wont say no either. If we analytically study the charts of such cryptocurrency very well, we do our normal analysis and we are being careful of how and when we will enter the market, it may be possible for us to open positions that may be opposite to what the whales have in plans.
Also, if we know the amount of money the whales have invested in the market, we may if we have the capability and the capacity to put an investment that is more than the initial investment of such feared whales, with that; our investment will start to dominate the price of the token in the market and our movement will then be the decider of the price and the fluctuations of that Cryptocurrency in the crypto market, by doing so, I think we can be advantageous over such whales.
In any case, in any case, we are altogether individuals and WHALES are too brilliant to even consider being anticipated. Their sole points and destinations as said before is to expand benefits however much as could be expected, thus: they as of now have their own arrangement (s) to be imparted to their partners and if nothing turns out badly, their developments are known and shared to the general population, in doing that; that makes it incomprehensible for us to be beneficial over such whales.
Also, if the whales does not share his investment amount to the public, it will be very hard to predict the movement of such whale and even if we try harder we may not be able to be advantageous over such a whale because we do not know his worth and we cannot tell how far he is in the market and it is said " an enemy you can fight and win is probably the one you know its movements and you can predict his position but it will be very hard to win a foe which one knows no or little information about".
Analyzing the chart below:
NOTE: The arrow facing downward is the downward trend while the one facing upward is the downward trend, then the green line is the distribution.
ACCUMULATION PHASE :
This is stage where the whales enter the market; as normal and as expected of them, they will begin purchasing, when other traders sees the adjustment of the patterns, they likewise will begin purchasing. Unwittingly to them that they are really expanding the benefit of the whales on the lookout.
ABSORPTION PHASE :
At this stage when the development is seen on the value outline, the whales will begin purchasing a greater amount of that coin, when this is done, it will likewise convey messages to different whales and just as other little financial backers to enter the market as well so as to set up their own positions, which will later go for the whales with the most elevated speculation.
DISRIBUTION PHASE
At this stage, since the price is significantly high as may have been predicted by the whales, the whales will start selling and as they sell, they earn more profit.
DOWNTREND PHASE
This point shows that there is a serious expansion in the sell volume of that coin and thusly, the value outline of the coin shows a bearish pattern and more red signs are seen on the graph.
If i were to be a whale in the cryptocurrency world I will choose the Shiba Inu coin because,
the coin is yet to gain much ground like the other cryptocurrencies like BITCOIN, ETHEREUM, BNB, DOGE et cetera. Also, It will be a good coin to invest in because there is no much investors in the coin and if should invest with a huge amount of money, say $140,000,000,000 you can imagine how dominant Ill be in determining the price of the SHIBA INU coin.
Shiba Inu (shib) is one of the recently launched cryptocurrency in the crypto market. Its current price as at the 2nd of July 2021 is $0.00000838 with the information gotten from the trust wallet app. As a whale, I know my movements will definitely have impact(s) on the price of the token, but I dont really care as far as, my movements will be profitable to me
ANALYZING SHIBA INU USING WHALES
NOTE: The arrow facing downward is the downward trend while the one facing upward is the downward trend, then the green line is the distribution.
ACCUMULATION
At this stage, I will attempt to set up my situation on the lookout, I will begin purchasing enormously however much I can, I will purchase to a sum that will create the cost of the token to go as high as possible since I need to be the one in particular whose speculation will be the driver of the cost and worth of the coin.
ABSORPTION PHASE (UP TREND)
As Ive said earlier on, that since I need to be the sole dominator of the cost of the coin; at this stage, I will expand the quantity of the SHIBA INU coin that am purchasing, I may do as such to the degree of multiplying or purchasing a triple of the underlying amount of the coin.
By doing this, I have consequently begin to offer signs to different financial backers to come in and input their ventures. With this, the cost of SHIBA INU coin will then, at that point begin climbing higher, as it is found in the diagram, green shading will begin showing up and there will presently be a bullish pattern which will show a predominant purchase on the lookout.
DISTRIBUTION PHASE
At this stage, since Ive previously stood out enough to be noticed of each broker on the lookout and the cost of the coin also have risen. My underlying points and destinations is to augment and gather as much benefit as possible, now, Ill beginning selling the SHIBA INU coin that Ive greatly purchased gradually.
DOWNTREND PHASE
Now, the deed would have been done as of now, now some other little financial backers who didn't know about my past goals will then, at that point understand that a large portion of the SHIBA INU coin in the market have been sold and they begin terrifying, a development that will make some of them to sell their SHIBA INU coin and in doing this, the market will enter a bearish pattern which will be shown by a descending development in the value outline.
In conclusion, it has been established that the price of cryptocurrencies do not just go up or come down, the prices are controlled by the so called whales in the cryptocurrency world. They are ones with huge investment on a coin and their decisions to buy or sell their positions in the market determine whether the value and price of a cryptocurrency will go up or decline. Also, as a small investors adequate researches must be carried out to know which coin to buy and at what time it should be bought in order not to fall into the market and lose a lot of money.