why does coins starts dumping/pumping as soon as BTC makes a move?
Every exchange has a software that manages the coins inside the exchange. Lets suppose that software name is BEN*.
BEN* main job is to keep the fiat value of a coin equal to the conmarketcap one.
So, for example when a coin value at the current BTC price is 20$ and BTC start to rise, BEN* start to sell your coins( you gonna see a sell walls came up) .this action preserve the Fiat value of the coin itself but decrease the satoshi price.
Now this is totally "fine" if this was not manipulated. Decreasing the price of a coin BEN* hit the support level causing also flash crash and annoying dip.
If the BTC price go down BEN* start selling again and again to hit the support level causing this time a losss also in the Fiat value.
The main focus of BEN* is to get to keep as much BTC as possible form all the trades, or people will be rich in no time and alts will sky rocket without any obstacle.
BEN* is a beast. He is the one who take most profit from you. Learn how to take advantage of it.
Thanks for reading!
We can talk on Steemit.chat ,Thanks for following @chahir99 .
And how can you take advantage of this? Or is this introduction for a new article? :)
just an introduction mate
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Simple ! you put in a buy order at a crazy level. If there is a flash crash you get the coins very cheap. Ive done this a few times on the equities market.
Thats a good plan; I never thought of doing this. Could be some easy money to be made espacially in pump and dump ICOs.
you got lucky because BEN* is a beast