Someone told me that there are groups (telegram for instance) where people agree to buy or sell at the same time, manipulating this way the price of cryptos. Urban legend or truth?
Truth. However, this is harder to do for some markets. As an example, even if a lot of people agreed to sell billions of euros for dollars at the same time, trying to trigger stop-loss mechanisms, that would be a tiny amount, unlike to move the market in any direction.
So my guess is that for crypto markets wouldn’t be this hard, right?
Yes, it wouldn’t be hard for crypto markets, and it’s one of the reasons for the volatility. Bad whales are annoying neighbours that can scoop huge amounts of coins when they are at a lower price, then they start a pump campain, telling people to adopt it, then dump when the price rises. It’s a safe way to make money given enough fools.
What we can do about it is to ride the waves, getting to know what these bad whales are doing and cash out and cash in according to the tide.
When Litecoin hit US$ 170 in January, I couldn’t believe it. Volatility once again struck the currency. I saw massive sell orders, trying to lower the price (because a bigger price makes it harder for newer people to join the society), but someone was insisting at keeping the price high. 30% increase in a week! Unbelieveable!
I shorted all of my Litecoins at US$ 170, because that wasn’t the reason why I bought Litecoin. I was looking for a boring currency, not the volatile crap it has become. The next day it crashed, then I bought Litecoin back and got two more Litecoins in the process.
There are rinse and repeat processes that continuously punishes bad actors, holding the currency for speculation purposes. When the currency bursts in price, sell some of it to test the resilience of the price. There is also another trading strategy, which doesn’t require you to sell your crypto, but can also be used to punish bad actors holding the cryptocurrency. I’ll write about it someday.
You did all that for only two coins?
I’m poor, trying all I can to become wealthier. I think Litecoin is one of the stones that will pave the path for greater wealth, so I’m here.