Crypto Academy / Season 3 / Week 1- Homework Post for Professor @wahyunahrul - Topic: Whales - The Driver Of Cryptocurrency Value. by @noraiz

in hive-108451 •  4 years ago 

Hello professor @wahyunahrul. I am @noraiz. First of all i way to pay my huge respect to you for delivering the lecture in easiest way. It was very comfortable for me to absorb this lecture. Here i am going to do my homework task.

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BASED ON ONE'S UNDERSTANDING OF THE LECTURE, EXPLAIN WHY WHALES ARE BEEN FEARED BY MANY SMALL INVESTORS


The Whale is a person who have owned a huge amount of crypto currency. This person then become strong enough to change the market trend with his moves. With this much heavy amount stored in his wallet, he become power influencer.

WHY WHALES ARE BEEN FEARED BY MANY SMALL INVESTORS

The crypto market change every time. If the market is going up right now, after sometime, it might be go down. If price is rising, after some time, it might be felling fastly and market may be crash. So ups and down are occur in crypto market. But certain factors are there who effect the market and market trend change. One of them is Whales too. Whale are powerful enough to change the market trend to earn the profit whenever they want. The small investors sometime face lose because of Whales moves. The small investors are afraid of Whales because

The whales own the heavy amount of coin and stored them in their wallet. With this high investment, they become powerful to change the market trend whenever they want. If they withdraw their share from market, market face downtrend. If they invest in crypto market, there heavy investment attract the other traders to invest and the price goes up. They only think about their profit and take moves which might be not good for small traders. Thats why the small traders always fearful from the Whales because no one know when they take move to change the market direction.

Whenever the Whales invest, they invest the great asset because of which the market goes up and price rise. When price rise, it become difficult for small traders to buy the coin.

When whales sell their holded coins, the price at sudden decrease. It effect the small investors much. They face the big lose because of the Whales sudden moves. The supply increase because demand decreases, the price then fell and the small investors have to sell their coins at this low price.


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WILL WE BE ABLE TO TAKE ADVANTAGES OF THE EXISTENCE OF WHALE THAT'S SO FEARED


No doubt that the whales move afraid the small investors. The whales can change the trends any time. They can life up the market by investing and can crash the market by selling the coins when ever they want. But they only think about their profit. They take move when they think it will earn them a great profit. They have power to influence the market. But by analyzing their moves, we can earn the benefit and can earn high profit too.

There are few phases according to which the whales perform. By following them we can earn profit and can save from lose.

Accumulation

This is the phase when the market proce is very low. This is right spot to enter the market. When you see that the whales are buying the coins at this price, you should buy the coins too. The whales make small investment in accumulation phase. They continuously keep buying at this low price. So when we see that the whales are investing, we should invest too

Uptrend

At this phase, the whales make big move. They invest huge amount in the coin. When the investors sees the whale's this act, they also invest in the coin. The demand increase which raise the price of coin too. The market goes uptrend. In uptrend phase, when whales make big move, we should know that the marlet is going uptrend, so we should make more investment to earn more profit because the whales are doing same.

Distribution phase

Then the distribution phase start. the whales stop investing in distribution phase. The other investors who didn't buy at the accumulation or uptrend phase, buy the coin in distribution phase. They are trapped thinking that the market will goes up more. But they realize their mistake when the whales sell their coin. the whales earn profit by selling their coin at the high price which they bough in accumulation phase at low price. So we should go against the whales. We should follow them When they buy, we should buy then and when they sell the coin, we should sell without wasting the time. only then we can get the high profit.

Downtrend

This is phase when the demand decrease because the whales and other smart investors have sell their coins. The left are one who kept waiting for market more high. They buy the coin in distribution phase at high price and now have to sell in market downtrend at low price. The supply incraese because of the high withdraw which create the chances again for whales to buy coin again at low price so we should wait for the whales next move.


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Question 3:- 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)

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I am going to explain the cycle of Whales using the chart graph of BCH.

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Accumulation phase

The above graph showing that there was the accumulation phase from starting of march till first week of April. The price was low so the small investments were done. The price was changing. But very slight change were occurring.

Uptrend Phase

We can see that The whales make a big move. They invest much money and price goes up. The market is going up. MAny other people also started investing after seeing this move of Whale. As much investment is done so the price is rise. The demand increase which decrease the supply. People rush to buy the coins after whales investment.

Distribution

We can see that After reaching the target price, the whales stop investing. HEre the people who didn't buy the coin in first two phase have bough the coins. But that was there big mistake. The whales sell his all coin at distribution phase. They earn profit because they sell coins at high rate but they buy the coin at low price in uptrend and accumulation phase. The distribution trend end till two week. It started from staring of May and continued till mid of second week.

Downtrend

After seeing that the whales has sell his investment, the other small investors also sell their coins. Some get profit, other face lose. Those how buy coin in distribution phase surely face lose. Again the demand decrease and supply ratio increase. So price fell down and again the accumulation phase start.




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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.

You need to be very careful before investing in some crypto currency. The analysis and proper research is neceassary before making an investment. If i would be a whale, i first do the research and analysis to predict the future of currency. Moreover i examine a currency by the followiyng facts,

The currency whose price is volatile is consider the good currency. If price don't chnage then there wont be any lose or profit margin. SO to get profit, its necessary that the currency should be volatile.

The second is the currency should be bann in my country. MAny currencies are banned by out government for some reason such as in pakistan "bitcoin was bann". So before adopting a currency, make sure that its mining is allowed in your country

Then the must be offered by the popular and well known exchanges. Some cryptos are not offered by exchanges. So make sure that the currency you are going to invest in is offered by the well known platforms.

Now by considering the above factors i would check the crypto currencies list. Below i am going to show the top 10 crypto currencies of this time according to Coinmarketcap.com. As i cannot take one among them, so i would go to the Vechain.

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Vechain is a coin whose rank is 22 . This coin is rising day by day and getting popularity among investors fastly. This will consider the great profitable currency in future because this is supported by many highly popular companies such as Renault. This fact is increasing the worth of Vechain. Moreover it is a volatile currency. Which mean that the price is not get stuck on one figure. The price fluctuate every time. Sometime it goes up and sometime the market goes down.

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Vechain is a penny coin with the value less than 1 dollar. It fulfill the above mentioned criteria. Its value in market is rising day by day and soon it will consider the best penny coin by investors to invest in order to get the maximum profit within short time. Many big companies such as Renault is supporting this project which enhance its worth. Its currency is VET. Its market capitalization is 0.475. Vechain price is 0.1246$.

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The above is trading view of Vechain. Which shows that the vechain market goes up and down sometime. It is volatile currency whose price is rise and fell.



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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)


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Accumulation

In this phase, i would invest small amount. I would make a big investment at once. I would buy the coin at this stage at low price.

Uptrend

Now this time, i would take a jump. I would invest a big amount of money in this coin. As the price is still low so i would buy a huge amount and will keep that in my wallet at low price. As others are not familior so now they will tend to buy the coins too because they know that as a whale buy this much coins, so market going to up surely

Distribution

After a heavy investment, many people will rush toward buying the coin which will increase the demand and decrease the supply. This will contribute further in rising the price. Then i would stop investing. Some other people who had not invested in accumulation and uptrend phase. Now they will invest money. they would buy coin at high price. Now my target is reached so i would sell all my coins. I would get the high profit buy selling the coins which i bought at low price.

Downtrend

By seeing my move, many investors would start selling the coins. Some would get profit some would lsoe. The demand will decease and supply would raise which down the price. Again the phase would start where coins can buy at low price.

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Conclusion

The whales are influencing party. They can change market trend whenever they want. SO to save from loss and to earn money, we should follow the whales. We should not buy coins when they are selling and should not sell coins when they are buying.

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