How do the "whales" of crypto feed on the "rattail"? 🐋 vs 🐀

In the ocean of cryptocurrencies, not everyone swims the same. There are two key figures:

🐋 The whales: investors with large amounts of crypto (thousands of BTC/ETH, for example). Their power allows them to move the market.

🐀 The "rattail" (rat tails): small investors who react late to market movements, following trends when they are already advanced.

How do the whales "eat" the rattail?

Pump and Dump:

· The whales quietly accumulate a cheap asset.

· They generate euphoria by buying heavily to inflate the price (the "pump").

· The rattail see rises and enter due to FOMO (fear of missing out).

· When the price is high, the whales sell massively ("dump"), collapsing the price and leaving the rattail trapped.

Cascade liquidations:

· In leveraged markets (like futures), whales move the price to areas where many small traders have liquidation orders.

· When those liquidations are triggered, the market moves sharply and the whales take the opportunity to buy back cheap.

Sentiment manipulation:

· Whales can use fake news, rumors, or large visible orders on exchanges to create an artificial trend.

· The rattail follows the movement without knowing it is a lure.

Tips to avoid being a "rattail":

· Research before investing (don’t just follow the excitement).

· Diversify and don’t invest more than you can afford to lose.

· Be wary of "quick and safe" profits in crypto.

· Use stop-loss orders if you are trading short term.

The crypto market is wild and without strict regulation. The best defense is education, patience, and thinking like a whale: act strategically, not impulsively.

In another post, I will share how to benefit from the whales.

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