3 Ways Bitcoin Traders Can Spot and Avoid Crypto Market Manipulation

3 Ways Bitcoin Traders Can Spot and Avoid Crypto Market Manipulation

Unlike traditional financial markets, crypto exchanges are largely unregulated, and virtually every Bitcoin (BTC) and crypto trader is familiar with various stories detailing the degree to which certain aspects of crypto market price action is manipulated. 

Despite this, many traders feel like there is little they can do to avoid the whims of whales and unethical market makers that shape the market to their advantage. Strategies like spoofing and hidden orders are common obfuscation tactics that savvy traders use to sway crypto prices.

Tracking manipulators’ moves is a cat and mouse game, but there are strategies retail-size traders can use to circumvent them. Let’s take a look at three strategies that whales use and how a trader can avoid being deceived by them.

Hidden orders are used to place sizable undetected bids and asks on the exchange order book. They allow for the automatic replenishment (iceberg) after each fill, thereby avoiding detection on exchanges order books.

Example of an iceberg order. Source: OKEx

This strategy is the opposite of a buy/sell wall, where a trader spoofs the market by placing large orders with no intention of executing them. Hidden orders typically involve large amounts, and they are readily available for anyone to use at most cryptocurrency exchanges.

Most buy and sell walls are not meant to be executed; they are meant to represent large flow but are usually canceled the minute the market reaches their levels. Very few whales would self-report their flow before executing it.

A simple way to avoid being deceived by a hidden order is not to monitor the order book like a hawk. The less one relies on measuring order book depth, the better. Most exchanges allow traders to minimize the order book from the trading screen view. 

Some traders do consider order book flow an essential part of their trading routine, and there are more sophisticated tracking programs readily available. It is worth noting that market makers and algorithmic traders know how to manipulate those as well.

Whales sometimes deceive the general public by posting large trades on heavily monitored exchanges while simultaneously doing the opposite on a smaller one. Professional traders could also be doing this either to profit from funding rate arbitrage, wash trading, but sometimes they are merely aiming to hide their real flow.

Market makers are usually paid for bringing flow to small venues, and they benefit from boosting their volumes on more significant exchanges in exchange for lower trading fees. Although this strategy is legal, it inflates volumes and is often used to delude traders into non-existent buy and sell flow.

Traders looking to avoid these tactics can ignore large individual trades and focus on longer price trends to prevent being misled. 

As crazy as it may sound, sometimes a whale will prop up prices to liquidate their exposure. This holds especially true when the market is already overleveraged, a scenario which can be measured by a significant funding rate imbalance. To benefit from this tactic whales simply open an opposite position of similar size.

Forcing a liquidation oftentimes leads to a cascade of similar order flow and while most short sellers will suffer and the whale has its large short positions liquidated, the entity responsible for the forced liquidation also boosts their gains on the previous long contracts.

There is no way to predict whether an entity is building this kind of strategy but there is an important indicator one can monitor to avoid being on the wrong side of such moves. 

BTC futures contracts per expiry date

BTC futures contracts per expiry date. Source: Skew

Comparing the premium on longer-term contracts to perpetual futures provides an unbiased tool that helps to gauge professional traders positions. A neutral market should display an ascending curve, ranging from a $50 to $150 premium which is equivalent to 0.5-1.5 percent depending on the maturity.

A flattish or inverted curve signals whales are heavily skewed to a bearish sentiment. On the other hand, any premium above 1 percent for contracts expiring within three months is a bullish indicator.

As previously stated, professional traders go to great lengths to avoid detection. They do the exact opposite when they intend to utilize buy and sell walls to benefit from the resulting FUD and FOMO. 

Unfortunately, there is not a 100% transparent, auditable indicator that can monitor manipulative tactics, especially in a market that has nearly zero fees for large traders.

As the markets continue to grow but also remain outside the reach of financial regulators, obfuscation and spoofing strategies could become more widely used. 

As a rule of thumb, retail traders should learn to take a longer-term view on crypto price action instead of watching charts measured in minutes because a bird’s-eye view provides a more general sense of the trend and what is occurring in the market. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: www.cryptobitnews.co.uk


Alleged Money Laundering: New Zealand freezes $90m linked to cryptocurrency trader BTC-e

Alleged Money Laundering: New Zealand freezes $90m linked to cryptocurrency trader BTC-e

New Zealand police said Monday they have seized $90 million from Alexander Vinnik, a Russian bitcoin fraud suspect who is in French custody but is also wanted in the United States.

New Zealand Police Commissioner Andrew Coster said it had worked closely with the U.S. Internal Revenue Service in the case. He said the money likely reflected illicit profits from thousands of victims.

The money is the most ever seized by New Zealand police.

The U.S. has accused Vinnik of laundering billions of dollars through BTC-e, one of the world´s largest digital currency exchanges. His native Russia also wants to put him on trial. Vinnik says he acted as a technical consultant to the BTC-e platform and had no knowledge of any illegal activity.

Vinnik was arrested in the summer of 2017 while on a family holiday in northern Greece, at the request of U.S. authorities.

After a two-year legal tug-of-war, Vinnik was extradited from Greece to France. French officials in January filed preliminary charges of money laundering and extortion against Vinnick.

Police Commissioner Andrew Coster said in a statement on Monday that “the money is linked to the Canton Business Corporation and its owner Alexander Vinnik, who was holding funds in a New Zealand company.

“Canton and Vinnik previously operated cryptocurrency exchange BTC-e.”

New Zealand police alleged that U.S.-based BTC-e had no anti-money laundering controls and policies, which allowed cyber criminals to launder proceeds from criminal activities.

“These funds are likely to reflect the profit gained from the victimisation of thousands, if not hundreds of thousands, of people globally as a result of cyber-crime and organized crime,’’ Coster said.

Coster said given the global nature of money laundering, there is always a risk that New Zealand companies will inadvertently become involved.

“However, this restraint demonstrates that New Zealand is not, and will not be, a safe haven for the illicit proceeds generated from crime in other parts of the world,’’ Coster said.

According to him, an investigation is ongoing, pending an application to the High Court seeking forfeiture of the funds.

The funds currently frozen mark the largest restraint of funds ever by New Zealand Police.

Source: www.withinnigeria.com

Author: Adebiyi Chioma


TOP (TOP) Achieves Market Capitalization of $14.05 Million

TOP (TOP) Achieves Market Capitalization of $14.05 Million

TOP (CURRENCY:TOP) traded up 0.7% against the dollar during the 1-day period ending at 11:00 AM E.T. on June 21st. One TOP token can now be purchased for about $0.0027 or 0.00000029 BTC on cryptocurrency exchanges including Huobi Global and Hotbit. TOP has a total market cap of $14.05 million and $409,469.00 worth of TOP was traded on exchanges in the last day. Over the last seven days, TOP has traded 3.1% lower against the dollar.

Here is how other cryptocurrencies have performed over the last day:

  • Innovative Bioresearch Classic (INNBCL) traded down 0% against the dollar and now trades at $0.0000 or 0.00000000 BTC.
  • Tether (USDT) traded 0.2% higher against the dollar and now trades at $1.00 or 0.00010722 BTC.
  • XRP (XRP) traded 0.1% higher against the dollar and now trades at $0.19 or 0.00002000 BTC.
  • Bitcoin SV (BSV) traded up 0.9% against the dollar and now trades at $173.65 or 0.01855108 BTC.
  • Binance Coin (BNB) traded up 1% against the dollar and now trades at $16.07 or 0.00171721 BTC.
  • InnovativeBioresearchClassic (INNBCL) traded 20.6% higher against the dollar and now trades at $0.0000 or 0.00000000 BTC.
  • Chainlink (LINK) traded up 0.4% against the dollar and now trades at $4.18 or 0.00044621 BTC.
  • What future awaits cryptocurrencies?
    GOODBAD
  • Stellar (XLM) traded 0.7% higher against the dollar and now trades at $0.0697 or 0.00000745 BTC.
  • TRON (TRX) traded 1% higher against the dollar and now trades at $0.0159 or 0.00000170 BTC.
  • Neo (NEO) traded 3.6% higher against the dollar and now trades at $10.51 or 0.00112280 BTC.
  • TOP Profile

    TOP Token Trading

    TOP can be purchased on these cryptocurrency exchanges: Huobi Global and Hotbit. It is usually not possible to buy alternative cryptocurrencies such as TOP directly using US dollars. Investors seeking to trade TOP should first buy Bitcoin or Ethereum using an exchange that deals in US dollars such as Coinbase, Changelly or GDAX. Investors can then use their newly-acquired Bitcoin or Ethereum to buy TOP using one of the aforementioned exchanges.

    Receive News & Updates for TOP Daily – Enter your email address below to receive a concise daily summary of the latest news and updates for TOP and related cryptocurrencies with MarketBeat.com’s FREE CryptoBeat newsletter.

    Source: theolympiareport.com

    Author: Daniel Rudford


    3 Ways Bitcoin Traders Can Spot and Avoid Crypto Market Manipulation

    3 Ways Bitcoin Traders Can Spot and Avoid Crypto Market Manipulation

    Unlike traditional financial markets, crypto exchanges are largely unregulated, and virtually every Bitcoin (BTC) and crypto trader is familiar with various stories detailing the degree to which certain aspects of crypto market price action is manipulated. 

    Despite this, many traders feel like there is little they can do to avoid the whims of whales and unethical market makers that shape the market to their advantage. Strategies like spoofing and hidden orders are common obfuscation tactics that savvy traders use to sway crypto prices.

    Tracking manipulators’ moves is a cat and mouse game, but there are strategies retail-size traders can use to circumvent them. Let’s take a look at three strategies that whales use and how a trader can avoid being deceived by them.

    Hidden orders are used to place sizable undetected bids and asks on the exchange order book. They allow for the automatic replenishment (iceberg) after each fill, thereby avoiding detection on exchanges order books.

    Example of an iceberg order

    Example of an iceberg order. Source: OKEx

    This strategy is the opposite of a buy/sell wall, where a trader spoofs the market by placing large orders with no intention of executing them. Hidden orders typically involve large amounts, and they are readily available for anyone to use at most cryptocurrency exchanges.

    Most buy and sell walls are not meant to be executed; they are meant to represent large flow but are usually canceled the minute the market reaches their levels. Very few whales would self-report their flow before executing it.

    A simple way to avoid being deceived by a hidden order is not to monitor the order book like a hawk. The less one relies on measuring order book depth, the better. Most exchanges allow traders to minimize the order book from the trading screen view. 

    Some traders do consider order book flow an essential part of their trading routine, and there are more sophisticated tracking programs readily available. It is worth noting that market makers and algorithmic traders know how to manipulate those as well.

    Whales sometimes deceive the general public by posting large trades on heavily monitored exchanges while simultaneously doing the opposite on a smaller one. Professional traders could also be doing this either to profit from funding rate arbitrage, wash trading, but sometimes they are merely aiming to hide their real flow.

    Market makers are usually paid for bringing flow to small venues, and they benefit from boosting their volumes on more significant exchanges in exchange for lower trading fees. Although this strategy is legal, it inflates volumes and is often used to delude traders into non-existent buy and sell flow.

    Traders looking to avoid these tactics can ignore large individual trades and focus on longer price trends to prevent being misled. 

    As crazy as it may sound, sometimes a whale will prop up prices to liquidate their exposure. This holds especially true when the market is already overleveraged, a scenario which can be measured by a significant funding rate imbalance. To benefit from this tactic whales simply open an opposite position of similar size.

    Forcing a liquidation oftentimes leads to a cascade of similar order flow and while most short sellers will suffer and the whale has its large short positions liquidated, the entity responsible for the forced liquidation also boosts their gains on the previous long contracts.

    There is no way to predict whether an entity is building this kind of strategy but there is an important indicator one can monitor to avoid being on the wrong side of such moves. 

    BTC futures contracts per expiry date

    BTC futures contracts per expiry date. Source: Skew

    Comparing the premium on longer-term contracts to perpetual futures provides an unbiased tool that helps to gauge professional traders positions. A neutral market should display an ascending curve, ranging from a $50 to $150 premium which is equivalent to 0.5-1.5 percent depending on the maturity.

    A flattish or inverted curve signals whales are heavily skewed to a bearish sentiment. On the other hand, any premium above 1 percent for contracts expiring within three months is a bullish indicator.

    As previously stated, professional traders go to great lengths to avoid detection. They do the exact opposite when they intend to utilize buy and sell walls to benefit from the resulting FUD and FOMO. 

    Unfortunately, there is not a 100% transparent, auditable indicator that can monitor manipulative tactics, especially in a market that has nearly zero fees for large traders.

    As the markets continue to grow but also remain outside the reach of financial regulators, obfuscation and spoofing strategies could become more widely used. 

    As a rule of thumb, retail traders should learn to take a longer-term view on crypto price action instead of watching charts measured in minutes because a bird’s-eye view provides a more general sense of the trend and what is occurring in the market. 

    The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

    Source: elexonic.com

    Author: by elexonic


    PonziCoin Hits Market Cap of $401.18 (PONZI)

    PonziCoin Hits Market Cap of $401.18 (PONZI)

    PonziCoin logoPonziCoin (CURRENCY:PONZI) traded 44.4% lower against the U.S. dollar during the 24-hour period ending at 17:00 PM ET on June 21st. One PonziCoin coin can currently be bought for approximately $0.0005 or 0.00000005 BTC on major cryptocurrency exchanges. Over the last seven days, PonziCoin has traded down 33.5% against the U.S. dollar. PonziCoin has a market cap of $401.18 and $5.00 worth of PonziCoin was traded on exchanges in the last day.

    Here is how related cryptocurrencies have performed over the last day:

  • Innovative Bioresearch Classic (INNBCL) traded 0% lower against the dollar and now trades at $0.0000 or 0.00000000 BTC.
  • Tether (USDT) traded 0.2% higher against the dollar and now trades at $1.00 or 0.00010726 BTC.
  • XRP (XRP) traded 0.8% lower against the dollar and now trades at $0.19 or 0.00002001 BTC.
  • Bitcoin SV (BSV) traded up 0.2% against the dollar and now trades at $173.13 or 0.01853626 BTC.
  • Binance Coin (BNB) traded 0.4% higher against the dollar and now trades at $16.05 or 0.00171838 BTC.
  • InnovativeBioresearchClassic (INNBCL) traded 20.6% higher against the dollar and now trades at $0.0000 or 0.00000000 BTC.
  • Chainlink (LINK) traded up 0.1% against the dollar and now trades at $4.18 or 0.00044804 BTC.
  • Stellar (XLM) traded down 0.3% against the dollar and now trades at $0.0694 or 0.00000743 BTC.
  • TRON (TRX) traded down 0.1% against the dollar and now trades at $0.0159 or 0.00000170 BTC.
  • Neo (NEO) traded 1.7% higher against the dollar and now trades at $10.39 or 0.00111241 BTC.
  • PonziCoin Coin Profile

    Buying and Selling PonziCoin

    PonziCoin can be traded on the following cryptocurrency exchanges: YoBit. It is usually not possible to purchase alternative cryptocurrencies such as PonziCoin directly using U.S. dollars. Investors seeking to trade PonziCoin should first purchase Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as Changelly, Gemini or Coinbase. Investors can then use their newly-acquired Ethereum or Bitcoin to purchase PonziCoin using one of the exchanges listed above.

    Receive News & Updates for PonziCoin Daily – Enter your email address below to receive a concise daily summary of the latest news and updates for PonziCoin and related cryptocurrencies with MarketBeat.com’s FREE CryptoBeat newsletter.

    Source: mayfieldrecorder.com

    Author: Irma Garcia


    3 Ways Bitcoin Traders Can Spot and Avoid Crypto Market Manipulation


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