Bull run Or Whale's Trap.
Crypto investment and trading is one the difficult and complicated thing which requires a lot of research, timing and patience. Lot of uncertain, hidden and fluctuating risks involved which can occur anytime without prior notice.
What is happening currently in the market? It is +6 , -4 game going on. It is going up and other hour it declining. Who are behind the curtains? All well known faces who always in hunt.
According to experts Bull Run is trap of whales which ends up in lose for most of small investors , day traders and opportunists. Long term investors / holders remains safe mostly.
Whale's Trap
It is possible that a bull run in cryptocurrency could be a trap for investors particularly those who are not well-informed or who are not careful about their investment decisions.
One potential trap that investors may fall into during a bull run is the temptation to buy into a particular cryptocurrency based solely on its recent price increases, rather than considering its long-term potential or conducting thorough research. This can lead to overvaluation of the cryptocurrency and a subsequent drop in price resulting in losses for investors.
Sudden huge buying puts price violation but will gain attractions of users and sudden selling will cause frustration in other users when prices will start declining.
Another potential trap is the influence of so-called "whales," or large investors who may manipulate the market through buying and selling in order to drive up prices or to push certain cryptocurrencies into a bull run. This can lead to volatility and uncertainty in the market and may result in losses for unsuspecting investors.
It is not compulsory that all bull runs are traps because many cryptocurrencies with strong fundamentals and long-term potential can experience significant price increases during a bull run.
Difference in buying.
The biggest difference in buying a asset between whales and ordinary user is timing. Whales always buy in dip and ordinary one's in rising time. All the selling in dip goes to particular wallet addresses, Means if ten addresses selling Bitcoin in dip then may be all going to one or Two wallet addresses, that are whales.
We , Normal users, mostly trapped by whales 🐋 in trading and investing but it is quite possible to keep ourselves safe by doing good research and holding our nerves in frustrating times. So I took all the current screen has been bloomed by whales only and ther are master drivers.
The article originally published on Publish0x.
Cheers,
Amjad.