Crypto exchange manipulation BTC
Hi guy, today something about yesterday night and how crypto exchanges can manipulate the cryptocurrency market.
Exchanges can manipulate the market in various ways, although it is important to note that not all exchanges engage in this behavior.
Here are a few ways how crypto exchanges can impact the market ( be careful about your trading and money):
1.) Wash trading: Exchanges may make fake trades to increase trading volume and create a false impression of liquidity.
2.) Pump and dump: Exchanges or groups of traders may agree to buy and sell a certain cryptocurrency in large quantities, causing the price to rise and fall rapidly.
3.) Front-running: Exchanges or their staff can use information about upcoming trades to gain an advantage over other traders.
4.) Stop loss hunting: Exchanges or experienced traders can identify where stop loss orders are located and manipulate the price so that the activation of these orders triggers further selling, leading to a drop in price. They can then shop at a lower price.
5.) Spoofing: Exchanges or traders may create fake orders that they never intend to fill. By doing this, they can influence the price of a cryptocurrency by showing other traders that there is interest in buying or selling at a certain price.
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Well, it's a topic that isn't talked about much, but as I've already written a few times in some other charters, pay attention to what you're trading, apply to a larger time frame and volume (volume indicator tradingview does not count as indicators (max 3 in free mode)! so I recommend having it on non-stop)
Stop Loss yes, but only if you are at the breaking point and it is not clear where it will go, or if you are in profit and do not know when to exit the position, or if you continue trading in a certain direction after obtaining the first / second target.
That's all for me for today, if you have any comments or ideas, send it down or to DM.
Exchanges can manipulate the market in various ways, although it is important to note that not all exchanges engage in this behavior.
Here are a few ways how crypto exchanges can impact the market ( be careful about your trading and money):
1.) Wash trading: Exchanges may make fake trades to increase trading volume and create a false impression of liquidity.
2.) Pump and dump: Exchanges or groups of traders may agree to buy and sell a certain cryptocurrency in large quantities, causing the price to rise and fall rapidly.
3.) Front-running: Exchanges or their staff can use information about upcoming trades to gain an advantage over other traders.
4.) Stop loss hunting: Exchanges or experienced traders can identify where stop loss orders are located and manipulate the price so that the activation of these orders triggers further selling, leading to a drop in price. They can then shop at a lower price.
5.) Spoofing: Exchanges or traders may create fake orders that they never intend to fill. By doing this, they can influence the price of a cryptocurrency by showing other traders that there is interest in buying or selling at a certain price.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Well, it's a topic that isn't talked about much, but as I've already written a few times in some other charters, pay attention to what you're trading, apply to a larger time frame and volume (volume indicator tradingview does not count as indicators (max 3 in free mode)! so I recommend having it on non-stop)
Stop Loss yes, but only if you are at the breaking point and it is not clear where it will go, or if you are in profit and do not know when to exit the position, or if you continue trading in a certain direction after obtaining the first / second target.
That's all for me for today, if you have any comments or ideas, send it down or to DM.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.