Market Manipulation in Crypto Trading (Part 3)

It is very easy to manipulate the crypto market because there are several indicators through which the market can be easily made vulnerable. And that is why the crypto market is considered very vulnerable, especially in the case of market manipulation. We have already witnessed such incidents where the entire crypto market has been affected by just one small tweet. So this crypto market is very vulnerable and for this we can explain two reasons here. We will try to understand two reasons for this crypto market being vulnerable to manipulation from this post.

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The crypto market is not like other stock markets or a regulated market, so there is a lack of regulation here and someone can easily manipulate the market here. That is, due to the lack of regulation and the lack of centralized control, even if you manipulate here, it will not be possible to bring it under the law. Therefore, due to the lack of regulation, crypto trading is very vulnerable to market manipulation.

There are many small coins whose liquidity is very low and manipulating the market is not a problem in the case of such coins. Any small investor can do this if they want. The market cap and low liquidity of small coins have made the crypto market very vulnerable. Liquidity problem is not an issue for big coins but for small coins they highly vulnerable due small market cap. When an investor or a group of investors has a maximum portion of fund of that market cap they can manipulate price easily with their huge investment that will create impact on general investors.

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VEIGO (Community Mod)

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