In the cryptocurrency market, whether it is the mainstream coins with ETFs or sentiment-based altcoins, the dealers never want the leeks to know the typical market manipulation methods. We have sorted out some typical methods for small investors to improve their cognition for reference, but it does not constitute investment advice!
1. Spreading false information:
1. Spreading false information:
For example, in the "Changchun High-Tech centralized procurement fake news short-selling incident", the false centralized procurement policy released by the self-media caused Changchun High-Tech's stock price to plummet continuously, causing investors to suffer heavy losses.
The market is full of noise and noise, and retail investors need to learn to capture effective information, which is the basic skill!
2. Use technical analysis:
The market maker may use technical analysis to create false breakthroughs, tops or bottoms in the K-line trend to induce retail investors to buy or sell chips.
They will deliberately create some false illusions of technical indicators during the rise or fall of the currency, such as false breakthroughs, false breakouts, etc., to mislead retail investors into believing that the trend has changed.
3. Market manipulation:
The market maker sometimes manipulates the market by buying and selling large quantities of the currency, causing the price of the currency to deviate from its true value.
They may suppress the price of the currency by selling a large amount of the currency, creating market panic and causing retail investors to sell their chips.
4. Benefit transfer:
The dealer may collude with the project and company insiders to obtain profits through insider trading, profit transfer, etc., and damage the interests of retail investors. Usually, the news is combined with fake technical indicators to kill the game!
5. Take advantage of market trends:
The market makers may take advantage of market trends, such as a bull market or a bear market, to create and exaggerate market sentiment, inducing retail investors to chase rising and falling prices, and thus hand over their chips.
6. Create market panic:
The dealer may suppress the price of the currency by selling a large number of chips, thereby creating market panic and causing retail investors to sell their chips in panic.
7. Use the daily limit pressure position to ship goods:
The market maker often uses large orders to block the daily limit, and then continuously withdraws the previous buy orders and then re-places the buy orders, prompting the funds that follow the trend of chasing the daily limit to buy chips at a high level, so as to achieve the purpose of smooth shipment.
On the contrary, the practice of new projects to absorb funds is the same. Large funds block the limit down support level to absorb funds, create fear and negative emotions, causing retail investors to sell blindly, thereby constantly exchanging retail investors' bloody cheap chips on the limit down support level.
8. High-volume breakthrough:
When the price is high, the dealer may accelerate the purchase of a large amount of the currency to push up the price, create the illusion of a breakthrough, and then slowly sell it at a high price.
The market makers will release false information about a certain currency through the media, the Internet and other channels, such as poor management of the company or project, major positive news, etc., in order to induce retail investors to make wrong investment decisions.
In addition to the above typical means, there are most other means, all of which are aimed at achieving the profit-making purpose of the banker. Regardless of whether the market is rising or falling, the banker usually aims to make a profit! For the currency circle without a protection mechanism, this is the cradle for the banker to abuse his power! They cannot lose money! Retail investors may suffer losses due to lack of sufficient information and judgment. Therefore, investors should remain calm in the currency market, carefully analyze market trends and speculate on the banker's every intention, and avoid being confused by the banker's various means. This is also the biggest reason why the risk of the crypto market is higher than all current financial trading markets!
In short, in a low-regulation, high-risk trading market, as a retail investor you need to respect the market, and even more so the dealer!
Don't try to make money from the banker, it's impossible! If you want to copy someone else's assets, others will want to copy your entire family! Be cautious, improve your cognition, keep learning, and survival is the top priority!
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Now the bull market in the cryptocurrency circle is going to rise in a long cycle, which is certain. Everyone thinks that they can make money by following this big trend. Is it really so? Most people lightly invest in mainstream and heavily invest in altcoins in order to get a bigger return! Will altcoins rise generally? It is worth thinking about!
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