How Sperm Whales Make Money in the Cryptocurrency Market

Big players and whales in the market rarely buy coins at high prices just to give out free coins. Instead, they use smart strategies to maximize their profits while causing ordinary investors to incur losses. Here’s how their game works:

1. Selling at the peak price: When the coin reaches a high price, whales and large investors begin to sell their shares. This often creates a sharp drop in price, causing panic in the market.
2. Retail investors panic: When the market collapses, many small retail investors panic and sell their coins at a loss, causing prices to drop further.
3. Small recovery to trap traders: After the initial crash, the market may show a small recovery, only to fall back again. This creates what we call a “mini-crash”, designed to extract more money from unsuspecting traders.
4. Accumulate at the bottom: When the price touches the lowest level, the whale will quietly buy back a large amount of coins at a discounted price, starting the cycle again. How can you protect yourself from these actions? Although you can’t stop whales, you can protect your investments with smart strategies:
5. Protect your profits early: Don’t hold coins while waiting for unrealistic profits. Whenever you see reasonable profits, take them and protect your money. Even a small profit is better than a big loss.
6. Place a stop-loss order: Always set a stop-loss level to minimize potential losses. For example, if your currency drops by 3-4% from the purchase price, convert it to a stable currency immediately. Don’t hold and hope for a reversal; act quickly to limit losses.
7. Have a plan: Decide on profit and loss targets before entering a trade. Stick to your strategy and don’t let emotions dominate your decisions. By following these rules, you won’t eliminate risk entirely, but you can reduce the likelihood of significant losses while consistently locking in small and stable profits. Trading is not about hoping for miracles; it’s about disciplined decision-making.