Alt Coin Insider Trading Is The Norm

avatar

Hey Jesstock traders

The altcoin market is anybody's guess, it's a wild wild west where anything goes and regardless of the so-called regulation coming into play, they are reactive and not proactive. Manipulation in the cryptocurrency market is the norm, its been this way for years and will continue to be a function of the short term price plays. While hedge funds and institutions like the so-called tether cartel go after the big boy Bitcoin and try and absorb more of retails investment through these systematic price pumps the altcoin market is far more vicious.

So if you're focused on short term gains, you need to be aware that all you see is NOT natural and to take all price movements with a pinch of salt.

Living on the inside lane

Insider trading is the trading of a public company's stock or other securities based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal.

Crypto projects are in a unique position where their coin is traded 24/7 and while in a perfect world their actions on their product would encourage more users and thus improve the price and drive more investment and runway for improvements. That is the story we're sold but unfortunately, it's not the path of least resistance.

Many altcoin projects have active market makers using their allocation to manipulate positions between and on certain exchanges. Their job is what we all want to do, buy in low and sell high, but when you have a massive amount of coins you've farmed or allocated to your project you have the power and vested interest to create your own swings and profit off of the retail investors who think they're on an upswing and sell into the demand you created.

Some altcoins may not have internal market makers but they have select telegram groups where early investors and shills are all ready to set positions and then pump out media to drive up the price.

Image source: - greensboroperformingarts.blogspot.com

Shilling, shitcoins and short term goals

The current market is filled with shitcoins and shilling without substance and all focused on short term gains and its easy to get caught up in it as a noob. Some of these market makers may be malicious while many feel its a victimless crime since they're going to reinvest the funds to drive the project and provide value in the future.

As an investor, you need to know who and what you're backing before you put down cash even if its a few dollars. Don't hand over your BTC so easily and make them work for it, the smart money knows when to be stingy, why do you think Warren Buffet is sitting on 136 billion in cash and waiting to invest?

Have your say

What do you good people of STEEM think? Do you consider the amount of insider trading going on in crypto?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

If you liked this post sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler

Buy & sell STEEMDonate LikeCoin For FreeEarn Interest On Crypto
blocktrades.jpgLikecoincryptocom.jpg

celciusnetwork.jpg



0
0
0.000
3 comments
avatar

cool thoughts, I know nothing about this market or trading altcoins... i'll send to my son he's getting involved in more coins. peace !

0
0
0.000
avatar

Lol i've made enough mistakes in this crypto space over the last few years so happy to put my lessons out there and warn others and hopefully drain the swamp a bit

0
0
0.000
avatar

Buy the tech and hodl. Day traders get their fingers burnt and deserve to.

0
0
0.000