Let’s talk about how major market players manipulate the game to snatch your Bitcoin.
First tactic: For those who know about FUD, there are enticing options like ETFs, smart contracts, loans, and more that can look really appealing.
Second tactic: For newbies who might not know about FUD, they fall for the negative propaganda surrounding Bitcoin, like claims that prices are gonna crash, it has no worth, it’s gonna get hacked, or that the market is falling behind.
But here’s the kicker: Bitcoin’s limitations, the halving process, and its decentralized nature make it super secure and trustworthy.
If it wasn’t for that, major traders, manipulators, and big institutional investors would probably have total control over Bitcoin.
From what I see, they’re always scheming, which is why fresh and exciting investment opportunities keep popping up.
How market manipulation is used to take your Bitcoin
16 replies 449 views
just_quantumNewbie
Posts: 94 · Reputation: 36
#2May 3, 2017, 02:23 AM
Its not a new thing, Bitcoin is still tied to four year cycles. Smart people know this and dont worry when the price crashes (at almost the exact time, every time).
There will always be people writing obituaries when Bitcoin is in a bear market. These are the best times to buy though. No other asset has ever crashed over 50% so many times and always returned to new ATHs. I dont expect it to be any different this time.
There is nothing to worry about, buy Bitcoin and be patient.
crypto_chainMember
Posts: 388 · Reputation: 72
#3May 3, 2017, 05:08 AM
Irrespective of the strategy they are using, don't let your assets be one of what we constitute their wealth by contributing it to them, we should learn to do things on our own and make necessary research in order to know what to expect from the market, not every move we see should be an indication to react upon, sometimes you can just be patient and watch to see how the market will we are just back to normal than taking a step at loss.
Those that are afraid of market crash can sell and that will not be a problem to those that are ready to take advantage and buy from whoever want to sell. Every investor is not built the same and we don't have to panic or feel for those that are selling ignorantly.
The price of Bitcoin has been moving like that for years and nothing changes. You can still sell your Bitcoin to me if you are not willing to hold, that's how liquidity flows. One ignorant investor must sell so that I can buy, that is the condition for trading.
If every investor decided to hold, how will the price moves. The buying and selling often balance the equation and creates fluctuation in price.
orbit_stackMember
Posts: 300 · Reputation: 105
#5May 3, 2017, 10:17 PM
Manipulation or not, the Bitcoin price will still rise or fall. Some people argue there is no cycle, but I don't agree. I believe there is a cycle, because every four years, there is a bear and bull season. It may not go exactly the same way or happen at exactly the same time, but sometime in the 4-year period it would happen. And this is due to human behaviour. People would buy when they speculate on the halving and buy in anticipation. Then the same people would sell when they have gotten maximum profit.
Manipulating Bitcoin is no easy thing. You are going to need money to drive demand or enough sales to create a ripple effect. I may be naive, but I don't think it's worth it for them. I don't like to see a conspiracy in everything. They could patiently wait for the price to dip, then buy, instead of risking their money and still waiting for the price to come up.
With bitcoin, you dont need to look away for an alternative that would replace it in whatever form they come with, or shape it to look superior more than Bitcoin. Only Bitcoin is the true currency that still maintains its value after facing so many crashes in the market, so dont fall for their FOMO or even FUD into thinking there is a better way around Bitcoin and not obeying the four year cycle it uses to create a new all time high. Bitcoin is very volatile but when you know how to make good use of the volatility more to your own advantage, you dont need to worry about the market conditions being bad, youll still be ahead and reach the peak of your investment prepared for the bull cycle to take profit on.
That is why Bitcoin is decentralized; they are avoiding the government's complete control over Bitcoin. Manipulating is pretty common; that is why we have block halving to avoid inflation and manipulations.
Look at those stocks and other markets, such as crude oil; they take advantage of going to war to keep crude oil pumping. War is a business; they do not start a war solely to gain complete control of the country but to manipulate the price and resources. Remember how the war affects the market? That is one of their ways to manipulate the market, as they believe if they invest in crude oil early before the war begins, they can make more profit, just like what happened a few months ago when the price pumped to the moon and increased more than 50%.
Bitcoin is also affected by this global crisis; even our daily life is affected by this because we have a food business, and gas and kerosene are what we always use in daily life for cooking and delivery.
However, even bitcoin is affected by this; it only has less impact, just like you said. They can't completely control Bitcoin unless pandemics repeat.
The first tactic isn't manipulation; it simply "secures" your Bitcoin ownership legally, even if things don't go smoothly. Hahaa.
Besides, using it only provides or expands personal exposure to the market and doesn't guarantee protection from the second tactic.
When you talked about market manipulation. I actually thought you were going to talk about how whales, people of influence, and politicians manipulate the market to their advantage while they keep buying those lows as the weak hands keep selling.
Another way is through introducing fake products that they can sell to you while you hand them over your BTC, and I think you nailed that with ETFs, and now we have these "stocks" that are listed on crypto exchanges.
hodler_orbitNewbie
Posts: 83 · Reputation: 21
#10May 8, 2017, 10:41 PM
Market manipulations are among the risks that we need to face when we decide to invest in bitcoin. So this is already expected, there will be a lot of fuds and hypes that will try to distract us but what becomes our edge is the clear and sufficient knowledge that we have about bitcoin.
Being a bitcoin investor does not mean that you are more knowledgeable and skillful enough, the only thing we need to have is to be more cautious and be responsible in our decisions and actions so as to make sure that what we are executing are the best remedies to combat the market uncertainty, and not to fall on the market manipulators trap.
It's what people call as RWA trend but with centralized exchanges, what they care about is money and in a bear market with decline trading volume, they have more motivation to list tokenized stocks on their centralized exchanges. It is very helpful for them to get more trading volume and exchange revenue during bearish months of cryptocurrency market.
Market manipulations always exist but during months of a bear market, it's more challenging and dangerous for people in the market especially traders. Because with traders, they live with market ups and downs while if they are newbies, or bad in risk management, they will lose a lot of money in bear market or even most of their capital by liquidations during bearish months.
Bear market also causes terrible psychological challenge to many people and it's helpful if they can learn and prepare their psychology as well as risk and capital management.
Wall street cheat sheet: The psychology of market cycle.
The psychological pitfalls of market cycle.
just_pixelNewbie
Posts: 275 · Reputation: 25
#12May 9, 2017, 04:31 AM
I'd add to your first category centralized exchanges, staking platforms, and other custodial services especially those who are offering interests and yields and whatever they call it.
Also, if I may add another strategy, which I believe is the most effective manipulation strategy of all, it's actually bringing the price down. FUD, propaganda, and what have you can only do so much. If the price performs well, they're rendered less effective, even useless.
However, if the price actually nosedives, even those who claim to be solid supporters would begin to waver. The moment the initial and deliberate sell-off begins to cause a domino effect, emotions would run high, weak hands would fall one after another, panic would ensue, coins are sold at a loss. And that's how big players are buying Bitcoin at a bargain.
degenhub573Member
Posts: 381 · Reputation: 40
#13May 9, 2017, 04:38 AM
Well, there are a lot of fuds from what I experienced whenever bearish market arrive. Whether it be the carbon footprint concern, black swan events, or even classic china's ban on bitcoin.
One thing for sure when the price looks too irrationally undervalued, that means it's time to buy regardless of the fud going around to retake your bitcoin. Those fuds will vanish when the market is showing some strength like usually.
If you truly understand the nature of your investment, you won't be bothered by the different events happening against the market. You know that bitcoin will always recover every price drop, so there is really nothing to worry about.
Just stick with bitcoin and invest calmly and patiently. And never let your emotions get carried away every time the market bleeds, that will always be temporary, because once you fall on it, you will only lose and regret your decisions made.
I agree, not a new thing already for us, who have already been here for multiple bear markets, bull markets. This is what newcomers to the Bitcoin market must realize: everything here is just part of the process, like a bumpy road.
That's why what OP said will be destruction for us; some will take it as an opportunity to take advantage of weak hands. Some may consider this bear market an opportunity to load more Bitcoin into their bags.
There is definitely market manipulation going on in many different guises. Creating FUD is definitely
one aspect and another where I have seen it in the past is while trading with leverage. All the shorts
and longs are publically visible so the market can be manipulated to move against either group and it
can wick up or down in the space of minutes to liquidate as many as possible and before they have
time to act.
I think the amount of loss a lot of innocent traders suffer is enormous and the amount of gain the
platforms make is enormous too.
Because it has happened before and Bitcoin always finds its way back up, there is increased confidence in the reputation of Bitcoin to survive any bear season.
I believe that it would have been hard formerly when there was no strong history behind Bitcoin indicating that this is a normal behavior of Bitcoin in every cycle; many investors would have reacted more irrationally then, but it should not be so now.
Reactions should be more controlled now than before.
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