Blockchain and Cryptocurrency Beginner - Understanding the Power of Whales in the Market

In the cryptocurrency world, there are different levels of individuals also known as investors based on sizes of their cryptocurrency assets and the number of coins they hold. Mostly the large investors who are also known as the whales and the small investors. The whales are the large investors, they are at the top and hold the largest amount of coins. When it comes to trading and investing, the whales play a major role in the cryptocurrency market.

The whales represents the large investors in the cryptocurrency market. They are also referred to as market makers because of their influence in the market and their ability to move the market up or down. This is the main reason why small investors fear the whales. The main goal of the whales is to make maximum profit by buying low and selling high. In the cryptocurrency market, there are 4 phases; accumulation, uptrend, distribution and downtrend phase. The whales have a huge influence in each of the phases.

The small investors fear the whales because the whales can move the market in any direction, thereby causing smaller investors to lose money in the market. During the accumulation phase, the whales accumulate a lot of coins, driving the price up, this causes more and more small investors to jump in and fall into the trap because of FOMO and expectation of higher increase. This leads to uptrend movement. The whales begin to sell off their coins holdings and take profit in the distribution phase, the selling pressure begins to force the price to decrease, causing the small investors who bought at higher prices to lose money.

Example of cryptocurrency that was heavily influenced by the actions of whales is STORJ, dogecoin, bitcoin etc. Elon Musk, institutions and other large investors played a big role in the increase in the prices. The whales began to accumulate a large amount of STORJ tokens as soon as the news broke out that coinbase was about to list STORJ, this caused the price of STORJ to increase drastically.

Coinbase list STORJ - Whales begin to accumulate large amounts, causing the price to spike up and causing other smaller investors to FOMO in which led to the increase in the price of STORJ tokens.

Whales began to accumulate large amounts after Coinbase made the announcement

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Is it possible to take advantage of whales controlling the market?

Yes, it is very possible to take advantage of the existence of the whales in the market and make more profit. This is made possible by understanding how the cryptocurrency market works and the different market cycles and phases and also proper use of fundamental and technical analysis. With proper understanding on how the cryptocurrency market works and the different phases in the market, anyone can take advantage and make more profits. To take advantage of the existence of whales in the market, proper fundamental and technical analysis have to be done. With proper technical analysis, anyone can determine the best entry and exit points based on the actions of the whales in the market and the market trends. technical indicators like RSI, MACD, are great indicators that can help anyone determine the market trends.