Did you know that big investors, also known as "whales", often use tricks to trick you? Let's look at the recent volatility of Bitcoin ($BTC) to understand better. On July 12, the candle closed at $57,800 after touching $58,500. After that, BTC continues to fluctuate in the range of $57,300 - $58,200, and may drop to the $55,550 - $56,000 area.
Why do you need to be careful?
Whales create “traps” to make it seem like the market is booming or crashing, to entice retail investors to take action. When retail investors blindly buy or sell, whales do the opposite and make huge profits, leaving small investors with huge losses.
Real life example:
Think back to the Bitcoin crash of 2018. When BTC peaked at nearly $20,000, many whales sold, creating a massive sell-off. Those who bought at the peak lost a lot of money as BTC plummeted below $4,000 the following year.
What should you do?
• Don't get carried away: When you see the market move unusually, don't rush into action. Stop and analyze carefully.
• Do your research: Don't believe in rumors or fads. Do your own research and assess the market situation.
• Consider market conditions: Comprehensively assess economic and market factors before making a decision.
Personal opinion: Don't be fooled by the whales' tricks. I have lost money to these traps and now I understand better the importance of analysis and research before investing.
Have you ever fallen into a whale trap? Share your story in the comments and let's find out how to protect yourself. Don't forget to follow me to get the most important analysis and updates. Invest smart, stay safe and don't get scammed! 💪