Coin market washing process

Washing is the process in which market traders fluctuate currency prices through buying and selling, eliminating weak currency holders and attracting funds at low prices. The steps are as follows: Rise stage: Attract investors to enter the market. Sell-off phase: Traders sell a large number of tokens, causing the currency price to fall. Panic selling stage: Investors sell due to emotional influence, and currency prices fall further. Fund-raising stage: Traders buy tokens at low prices to accumulate chips.

Coin Circle Washing Process

What is washing?

Washing means that market traders fluctuate currency prices through large-scale selling or buying, forcing other investors to sell or buy, thereby achieving the purpose of cleaning out unstable holders in the market and collecting funds at low prices.

The washing process

The washing process is usually divided into four stages:

1. Rising stage:

The currency price rises rapidly, attracting a large number of investors.

2. Sell-off phase:

Traders began to sell a large number of tokens, causing the currency price to fall sharply.

3. Panic selling stage:

Falling prices trigger panic, and other investors are affected by their emotions and start selling, causing the currency price to fall further.

4. Fund-raising stage:

Traders take the opportunity to buy tokens at low prices and accumulate chips.

Purpose of the wash

The main purpose of the wash is:

• Clear out weak currency holders in the market: Force investors who cannot bear price fluctuations to sell their tokens and purify the market.
• Accumulate low-priced chips: Traders collect large amounts of tokens at low prices through selling and accumulating funds.
• Manipulate market sentiment: The washing process will create market fluctuations and affect investor sentiment, allowing traders to buy low and sell high to make profits.

Coping with washouts

Investors should stay calm when encountering a washout and take the following countermeasures:

• Understand the washout techniques: Be familiar with the common characteristics of a washout to avoid being misled by traders.
• Control risks: Reasonably allocate positions and avoid over-investment.
• Have firm faith: Have confidence in the tokens you hold, and don’t be easily affected by market sentiment.
• Stop profits and losses in time: When profits or losses reach a certain level, exit decisively to avoid greater losses.

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