Whales are simply big investors in the cryptocurrency market. In cryptocurrency, the whales are the major players in the market. They are the big investors who invest a large amount of money to acquire a large amount of coins. Because of this, they are able to move the market. In some markets, whales have the capability to manipulate prices in the market because of their huge influence. Because of their influence, they are considered market makers. The main goals of the whales is to enter the market and buy at low prices, and exit the market and sell at high prices.
The whales are feared by the small investors because the whales can manipulate the prices in the market in their favour, and make it go against the small investors. A whale is also a market marker and has huge influence in the market because of their high purchasing power. Small investors lose money because of the manipulative power of the whales. The whales buy their coins at low prices and when they prices increase, they dump it on the small investors who bought at the top. The actions of the whales are mostly in 4 different phases to complete the cycle. Small investors who bought at the uptrend phase would lose money when the whales begin to dump their coins in the distribution phase. These are some of the reasons why small investors fear the whales.
Also, the small investors who bought coins at a high price and hoping for the price to keep increasing would lose money when the whales begin to dump their coins due to a negative news. A lot of whales dumped their Doge after pumping it due to Elon Musk tweet[.](https://steemit.com/hive-175254/@designieplay/why-do-small-investors-fear-whales-in-the-crypto-market) As the price of doge went very high, the whales dumped their coins. This caused a lot of small investors who bought at the top to be at a loss.
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[Source](https://twitter.com/elonmusk/status/1357241340313141249?s=20)
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[Source](https://twitter.com/elonmusk/status/1357236825589432322?s=20)
#### How we can take advantages of the existence of the whale in the crypto market
We will be able to take advantage of the existence of whales in the market. We all know that the whales wants to make maximum profits from their investments, that is why they manipulate the market in their favour to go against the small investors[.](https://steemit.com/hive-108451/@designieplay/crypto-academy-season-3-week-1-whales-the-driver-of-cryptocurrency-value-by-wahyunahrul) In order to take advantage of the existence of whales in the market, one needs to fully understand how the market cycle works and the different phases that the whales operate in the market[.](https://steemit.com/hive-175254/@designieplay/why-do-a-lot-of-the-small-investors-fear-whales-in-the-crypto-market) The actions of the whales are mostly in 4 different phases to complete the cycle.
When you understand the market cycle and how the whales operate, you can take advantage of the whales in the market and make very big profit. For instance, when the market has shown signs of the accumulation phase, smart investors usually go long to capitalize on the uptrend that will follow. Likewise when the market is in an uptrend, smart investors try to go short at the top of the uptrend.
