When one investor outperforms in the market, then someone is likely to underperform. That’s just a very simple arithmetical fact. Don’t you agree? While in a free and regulated space, all the investors have equal access to all information. Whoever makes the best prediction wins! The one who doesn’t, loses.
But, that’s how it happens when there is regulation. We can’t say the same for the crypto-world. The crypto-verse is like the wild, wild west! No one plays fair and everyone is ready to make profit at the expense of others.
Here are the three types of traders that are ruthlessly kicking your ass!
Inside trading is illegal in all the traditional markets. Inside traders are those who are aware of the nonpublic information. They make their trade on the basis of the inside knowledge. Over the years there have been prominent insider trading cases in the crypto-market. In 2017 Coinbase had tweeted that it would add Bitcoin Cash to its exchange.
Guess what happened? Before the announcement was made even public both the price and trading volume of Bitcoin Cash was had magically surged. Insider trading is rampant in the crypto-verse. It’s very often trading volumes and prices will pump before the exchange announces a new coin. The sad part? Insider traders will always have the upper hand!
A whale is the most casual way to describe an investor who manipulates the market by mobilizing a huge amount of capital. Most of the crypto-investors treat whales like the boogeyman. It’s because they’ve never had any personal interaction with them, but they swear that whales are actually responsible for great market swings everywhere. These whales use techniques like stop-loss hunting, short/long hunting and spoofing and wash trading.
Pump and Dump Group Executives
Pump and Dump is a form of market manipulation. Manipulators everywhere, ugh! It involves the purchase of a cheap asset, then artificially inflating its price and then finally dumping the asset at a higher price. The crypto-market is filled with such groups. Some of these groups are Big Pump Signal, Pump King Community and Crypto4Pumps.
These are the groups that have the most control and largest influence. They are the only ones who make consistent profits in the market. They are actually the worst kind. Buyers are falsely led into purchasing a promising undervalued coin, but the reality is that these are the coins that are going to be dumped soon.
So, if you’re thinking the game is completely rigged and you’re screwed. Don’t freaking panic. All you need to do is stop actively trading and that’s how can have a upper hand!
The more and more you try to time the market, the more you are actually opening yourself to opportunities that are going to screw you! The average investor is likely to under perform when other investors hold the major cards. That’s exactly why we advise you to hold onto a small piece of the entire crypto-market. A good way to start will be to diversify across the top twenty crypto based on their market cap.
Comment below for further questions. We’re happy to answer always!