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Sell wall explained: https://www.reddit.com/r/CryptoCurrency/comments/7nqts3/sell_walls_what_they_are_what_they_do_and_how_to/
More on Sell Walls: https://smartoptions.io/read-buy-sell-walls-crypto/
In my previous video, I went over how and why exchanges would create fake volume by using a market manipulation method called wash trading. If you missed that one, you can find a link to it here in the upper right hand corner of the screen.
Today I want to go over how an individual would be able to manipulate the crypto market and why they would want to do so. Whales today in the crypto markets have a couple different options but right now I’ll be speaking about order spoofing.
To just briefly look back on the first video of this series, an exchange is able to create and fill so many orders on their books because they have the means to do so. By that I mean that the exchange is in possession of a lot of coins and things called trading bots that enable them to create and fill thousands of orders a day.
Today we are adjusting the magnifying glass to inspect individuals who have the ability to do something like this and with that, things get a bit more serious. After all, individual traders have anonymity on their side and therefore can get away with much worse with slim chances of penalties. The average Joe crypto trader can’t exactly pull off a stunt like this. What the individual needs is a lot of coins to throw around. Anyone in possession of that amount of crypto is considered a whale. If you’re new to this space, you’re going to be hearing that name thrown around a lot. Whales exist by being early adopters, early miners, selling at the top and buying when others are panic selling. Basically they found success by going against the crowd and taking risks.
Some whales are good, and some are greedy, today we are examining the greedy ones and their tactics for getting more coins.
First, let’s understand what buy and sell walls are.
Let’s say a whale finds himself wanting to buy his coins at a lower price. If the market is not giving him the opportunity to buy at the price he wants and if he has enough coins at his disposal, he could very well make it look like there is suddenly a lot of activity. Activity that is moving in the direction the whale wants.
The thing to remember is that there are other eyes that are watching the order books of that exchange.
The whale could put up what are called buy or sell walls. These are very large orders placed to make it appear there is a strong sentiment either for the price to rise or fall. If the whale sets a very large and low priced sell wall, let’s say the order is for 500 bitcoin, it forces others who want to sell right away, who are impatient, or who don’t notice the sell wall, to sell at a lower price than that wall. This provides liquidity at lower prices of that sell wall. At this point, all the whale needs to do is cancel the order and those smaller sell orders will quickly be sold and the price will reflect this downward trend.
A large and low priced sell wall can mean that a whale wants to drive the price down so they would be able to accumulate more at a lower price. Or it could mean that the whale is holding a short position for that coin and a falling price means more profit for him on the other side.
The same could be done in reverse if the whale wanted to sell their coins at a higher price. They would place huge buy orders to drive the price up, remove that wall and then take advantage of a higher price to see a bigger profit.
HOW TO SPOT A SELL/BUY WALL: A whale doing something like this on purpose is easy to spot when you see a large buy or sell order of the same amount, like in the previous example, say 500 bitcoin but is removed and then set at different prices moving downward for sell orders and upward for buy orders.
Before you start thinking that all is lost, keep in mind that one whale putting up sell walls on one exchange, does not mean the same story on other exchanges.
If you are a trader, perhaps patience will prove beneficial along with the reminder that sell walls can disappear.
This my friends is the introduction to one hell of a rabbit hole.
Don’t miss out on the next videos in this series, there is a lot more to come.
I dint do nuffin
As expected from you a very educational article. Thank you.
Why ruin a good way to make money for views lol
Very good info! Thanks! Think I’ll just continue to dollar cost average!
No investor / trader should be making choices based on order books. But they do. It is the reason why 95% of crypto investors will leave the game with less money than they started.
it is true the exchanges. are also businesses some.people have forgotten that. they are in market.to make.money.off other people's money etc. have to careful. but also the catch 22 on both sides of the table. thanks for sharing sincerely jr
Very informative video .. Lots of good info . Thank you so much
love that song
Love it. And great choice on the intro song?
Cat very nice
Thank you You answered so many questions i could not find the answer to
Yep, nice bit of reporting !…
It is good to know. Thanks Heidi!
¿what tchoo talkin' 'bout Willis?
Move along nothing to see here?
Wash trading, HFT, AH tape etcetera have been going on for decades in equities markets. For crypto it will get considerably worse when options contracts begin to underpin cryptocurrency and etf’s etcetera begin trading.
Again, interoperability is the only cure here.
?
Check the DOGE pairs and select exchanges: Yobit, Cryptopia, Bitfinex, Poloneix, Huobi, Kucoin, Shapeshift, Livecoin, and (Insert throw-away washtrade exchange here). The KYC and banking rules are letting fiat in at some points. EX: You can put USD onto Bittrex. You cannot buy DCR in USD anywhere except Yobit, a regulated exchange. To buy DCR/ETH and DCR/USD are not available on Bittrex, just USDT. This means you need to be permitted to convert USD to Tether there. DCR has less than 9M coins in circulation. That low liquidity is being obscured, intentionally, by prices that have control points and by fake liquidity on centralized exchanges. Want a market recovery? Go buy 1 DCR, 1 LTC, and 1000 DGB and place in a wallet. "Proof of keys" needed a targeted message to accomplish it's goal, not "pull all your coin".
The USD and DOGE prices will fluxuate wildly but the BTC and ETH pairs, the ones people watch, see little action. The minor fluctuation in BTC, ETH, and USD terms means little but the DOGE markets provide a floor.
The movement of several pairs along with the wash trading is prima facie evidence of coordination. If coordinated, then not an accident. Prepare for 2008 to unwind and crypto services to catch the failing systems.
Exactly! That's one of the reasons I don't trade. I've been caught in those situations in the past. I had my stops set nicely then "blamo" the price crashes and returns to where it was, causing me to sell below market. I also got FOMOed into a bull trap and panic sold the bottom. Finally I got sick of it and stopped. So for the last few years I've just ramped my spending down a bit and bought bitcoin on or near payday, dumped it into cold storage and went on with my life (as I'm doing now). The only way for a normal guy to win that game is not to play. I can keep this up for years if necessary but somehow I doubt I'll have to.
there is a run on the market, panic now (lol) (human nature) Please don't fomo in buy at the top and don't panic sell at the bottom (and don't be fooled by the whales)
One heck of a way to promote crypto… chick!?
Smashed the likes.
COOL
Love her… u r amazing… love it…
Hey!