Crypto Academy / Season 3 / Week 1 Homework post for @whyunahrul / WHALES THE DRIVERS OF CRYPTOCURRENCY / by @ahtishamghumman5

Hi Steemians, It's me Ahtisham Ghumman. I hope you are all good and doing great. This is my homework task for respected professor @wahyunahrul.

Q/1: Based on the understanding that you've gained from this class, explain why whales are so feared by small investors?

Word “whale” is a small word but in original life it considered as a biggest animal on the earth and have the power to eat small fishes and in crypto world who have the biggest amount of these crypto currencies is called a whale. In this crypto world have power to change the market trend.

There are serval reasons why whales are so feared by small investors.

DEMAND AND SUPPLY

Demand and supply matters a lot while purchasing or selling these things. If you don’t able to understand the market trend you’ll lose your money.

WHAT WHALES DO WITH DEMAND AND SUPPLY

As I said above whales have the power to change market trend they simply invest in one coin and after investing or while investing someone said that person invest in that coin and then small investors start investing in that coin when the market raise the whale simply withdraw their money and bearish period of market starts. Now the small investors lose their money and sell all the coins on low price then again any other whale come and start buy that coin or another coin that’s why I said you need to understand the market trend other wise you’ll lose your money.

INFLUENCERS

Whales are the great influencers. Mostly when a whale invest money in some coins he tweeted or do something like this that I buy this coin and then small investors see their tweets and then they see the chart they think Now it’s the right time to invest in this coin coz MR A (AS A WHALE) invest in this coin. That’s how the bullish time comes and then suddenly whale withdraws all their money and bearish time starts and mostly small investors lose their money in this way.

TRICKS

Whale do Stunning tricks to attracts the market and small investors. If a whale posted like This coin is amazing mostly small investors think now it’s the time to buy this coin coz MR A (AS A WHALE) will invest in this coin and market trend will change but due to bad predictions, they lose their money.

Will we be able to take advantages of the existence of the whale that is so feared?

Yes we can get advantages by doing a good prediction or anything else. We can follow them and see their tweets or posts and then we can predict this coin will raise and this will not. Prediction is a risky factor like if we predict wrong we can loose and if we predict right we can earn great profit.

HERE ARE SOME STAGES

SMALL INVESTMENTS

First whales do small investments it is not the good time for small investors to buy that coin it is the first stage when they invest a little bit in any coin

BIG INVESTMENTS

After some time they do big investments and now it’s the time to invest in that coin so many small investors invest that time when the price of that coin low and wait until the price raise again.

DON'T BE GREEDY

Set your amount like if you invest 100$ and you suppose to get 160$ and suddenly the price increase to 160 and still you are waiting coz it increase more than 160 and you think it’ll rise but suddenly the whale withdraw his money and you lose your money that’s why I choose this point don’t be greedy and set your amount and then sell your coins.

Find an example of a whale's cycle on a cryptocurrency chart, and do a detailed analysis of the phases in the cryptocurrency chart (don't take the cryptocurrencies that are ranked in the top 10 as examples). (Screenshot Required)

ACCUMULATION PHASE

Here you can see this chart in this chart the accumulation phase starts almost 20^th April that time whales start investing in this coin and they invest almost 3 weeks in this coin and on the start of the May it was on the peak.

UPTREND PHASE

You can see the uptrend phase was almost go to the mid of the May. It was like when the market raise the uptrend phase starts and it was the bullish time.

DOWNTREND / DISTRIBUTION PHASE

It was the time when market trends was on the peak and in the mid of the May it was on the peak that time the demand was very high. Suddenly you can see whales played smart and withdraw their money and market trend comes to the downfall and bearish stage starts.

Question 4:- IF YOU ARE A “WHALE”, WHAT CRYPTOCURRENCY WOULD YOU CHOOSE TO INVEST OR TRADE (except those that are in the top 10), EXPLAIN WHY YOU CHOSE THAT CRYPTOCURRENCY.

If I would be a whale I’ll invest in File coin here are some reasons why I invest in this coin. The ranking of this coin in Market Cap is 24^th.

You can see in this chart the lower price of this coin was 43$ in the start of the March and it’s  not a very low price the ranking of this coin is 24 so if I would be a whale I’ll invest in this coin. You can see in the end of the March the market trend changes and the price of this coin was on the peak and the price was 188$ so it is main reason to invest in this coin. Then the market trend goes down and still now it’s stable.

I would like to invest in this currency and as you now guys whales have the power to change the market trend I’ll change the market trend.

ROADMAP OF FILECOIN

Filecoin was founded by Mr. Juan Benet, on 15 july 2014. who also created the Interplanetary File System. In fall 2020, 400 miners participated in what was called the “Space Race” testnet phase, increasing Filecoin’s network data capacity by over 325 pebibytes; approximately 3.5 million FIL tokens will be released to the Space Race participants.


LINK

5). Do a kind of analysis as a whale with the phases that I explained earlier on the chart of your chosen cryptocurrency, show where you will start buying the cryptocurrency, and explain how you will take profit. (Screenshot Required)

I WOULD LIKE TO DISCUSS HERE FILECOIN.

Accumulation Phase

Now I’ll invest a small amount in this coin. You can see guys after 24^th of May it still balanced now I’ll wait for a while and then wait for market trend.

UPTREND PHASE

At the uptrend phase I’ll make a big investment in this coin and wait for the market trend change when the supply of this coin increase mostly buyers want to buy these coins then I see the right time and sell my all the coins in a very smart way and earn big profit.

DOWNTREND PHASE

When the downtrend phase starts and the market getting low I’ll t for the right time and again do this same cycle to more profit.

CONCLUSION

As i said whale is the biggest animal in the jungle and also in the crypto world they have power to change the market trend. We just need to follow their activities related crypto when they invest and when they withdraw. We need to be smart like they are and most important thing is we need to set our goal like if you buy a coin in 2$ set your goal like you’ll sell it in 5$ don’t be greedy as others otherwise you will lose your money coz you don’t know the tricks of whales