There has been an ongoing debate over whether the cryptocurrencies are subjected to manipulation. While some experts have debunked it as a popular hoax, there are few who strongly suggest it to be true.
Though we may never reach the bottom of this heated debate, it is the perfect time to find the truth behind the allegations of market manipulation.
Are cryptocurrencies really manipulated?
Several experts have suggested over the years that the cryptocurrencies are manipulated strategically by resourceful people. Though they have failed to provide any concrete proof to establish their opinion, it is never wise to completely neglect their opinion.
So, is it true? Are these cryptocurrencies really subjected to market manipulation techniques?
Truth to be told, these allegations are not entirely baseless. Indeed a portion of the cryptocurrency market is subjected to manipulative techniques.
Actually, there thousands of cryptocurrencies available in the market right now!
New cryptocurrencies are being created every day. On the other hand, several coins are disappearing in the oblivion falling to leave any mark on the market. There are only a few cryptocurrencies which have escaped the manipulators and achieved success in the market.
But how are the cryptocurrencies manipulated? This has been one of the main questions that have stormed the minds of several people. Well, there are few wealthy investors with huge monetary resources. These people are called whales. And they are responsible for manipulation of the cryptocurrencies.
These whales choose coins with low market capitalisation and invest large amounts of money in these currencies. The sudden investment increases the price of the currencies greatly within a short amount of time. This sudden increase in price attracts the regular investors to invest money in these coins for huge returns on investment. As the price of the currency reaches an optimum level, the whales withdraw their money from the market with huge profits on their investment.
This sudden withdrawal of money results in mammoth fall in price. As a result, common investors lose their money and face agony.
How to invest safely in cryptocurrencies?
Well, this has been the reality of the cryptocurrency market for a long time now. However, it does not mean that it is not wise to invest in cryptocurrencies. Obviously, the cryptocurrencies have been one of the stable and reliable investment options for common populace. And it will continue to be so in the years to come.
So, how will you invest safely? Well, invest in the currencies with respectable market capitalisation. Plus, make sure that the price of the currency has shown a stable growth over the years. Do not invest in the currencies that have witnessed a sudden surge in price without any previous market growth history. You will have to be vigilant and invest in your risk appetite in my mind and you will be able to achieve success.
The market manipulation of weak cryptocurrencies will continue and many cryptocurrencies will come and disappear. So, invest carefully and continue achieving wonders.