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

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. 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. Read More...