Hello, guys! Welcome back with me, Reyhan Tan. In this article, we will unveil the secrets of crypto market makers, often referred to as “Market Makers” in the crypto world.
Who are the Market Makers?
When we hear the term “Market Makers”, it often carries a negative connotation, associated with gambling or other illegal activities. However, in the crypto world, there are also market makers. These market makers in crypto are also known as “Smart Money”. They are the central banks, trading firms, venture capitalists, and various financial institutions that have the tendency to move the market due to the size of their trades.
The Power of Smart Money
Smart Money can shape the trend of the market. That’s why when Smart Money enters the market, there’s always a big wave, just like when a large whale enters the water. On the other hand, we, the retail investors, are like small fish. When small fish move in the water, it doesn’t create any effect. Therefore, the best thing for us to do is to follow what the big players are doing and hope that we don’t get eaten.
Understanding the Mindset of Smart Money
Firstly, Smart Money works in reverse with retail investors. The two main components of market emotion are Fear and Greed. We, as investors, tend to be greedy when the price rises but fearful when it drops. This is what Smart Money takes advantage of. When retail investors are fearful, Smart Money steps up and buys in large quantities. And when we are greedy, they start to slow down their purchases.
Secondly, Smart Money is very clever at manipulating charts. They can trap market participants into thinking that the price will move in a certain direction after breaking through a certain point, which turns out to be completely different from the retail expectation.
Conclusion
Understanding the mindset and strategies of Smart Money can help us make better investment decisions. Remember, it’s always better to swim with the current rather than against it. So, let’s follow the Smart Money and navigate the crypto ocean wisely!
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