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Whales Game of Whales and Crypto

Whales and Volatility [Thread]

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1/ It’s been a volatile week, and it’s just getting started. Unexplained movements and unjustified price action are one of the many things retail traders are suffering with.

2/ One reason volatility has increased is due to the lack of liquidity in the market. Lack of liquidity forces exchanges to wash trade in order to increase their daily volume to attract retail.

3/ Daily volume has been wildly inaccurate in crypto and will continue to be this way since there are little to no regulations holding back exchanges. It’s estimated that 90% of daily exchange volume is wash traded.

4/ Exchanges are capitalizing on low-capital retail traders with minimal effort, and no matter how you size your positions, you’ll find yourself caught up in a tide you can’t weather

5/ My strong recommendation for retail traders is to stay sidelined for the time being. Unfortunately, this is becoming more of a whales game, and there’s no point in getting caught up in a battle you can’t win.

6/ Sitting back doesn’t mean you take a break entirely from the markets. It is actually advised to keep up with sentiment and PA to educate yourself and utilize this in the future.

7/ The key to surviving these current conditions is capital preservation, which means that you don’t put yourself in a position to lose more money than you should- this is one of those situations.

8/ Crypto is here to stay, and in order to stick around for the next cycle, you’ll need to survive this one.

This post is based on this twitter thread.


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