The crypto Billionaires sit quietly in the shadows, controlling the markets and taking huge profits each and every day. Evenings and Weekends they are active, still trading while traditional markets take a break.
For years now, These entities have amassed a fortune that easily puts a large Bank to shame.
These Fortune Seekers started with Bitcoin, then quickly branched to many other altcoins. Some of these entities have dozens of different coins in their portfolio worth 100's of Millions of Dollars.
Who are these entities I call the Crypto Billionaires?
These entities are known as The Exchanges.
Every day millions of people log into their exchange account to trade. Maybe it's Bittrex, or Binance, or Coinbase.
These exchanges take a small cut with each trade, accruing wealth a speck at a time. They provide the platform on which to trade, but do not openly interfere... or so we desperately want to believe.
It does not matter if the market is Bullish or Bearish, or if you're trading smart, the Exchanges get paid no matter what.
The exchanges don't care if Bitcoin is worth $1000 or $1,000,000. The exchanges much prefer the price of every cryptocurrency to be in a constant state of flux, because this increases the volume of trading, and increased volume increases the profits of an Exchange.
During every great gold rush in history, there were few miners that got rich. In the end, it was always the outfitters and bankers who ended up with all the gold. The Exchanges are the modern Bankers of cryptocurrency, and with each trade they take a small fee for themselves.
Over time the Exchanges build up such large holdings that they become the whales of myth and legend.
So the next time you wonder who is making all the money in Crypto, remember that the Exchanges never lose. In the past, the really big money moving in and out of crypto was rarely done on Exchanges, but instead was done OTC (over the counter) or through private trades that were set up weeks in advance by hired Fixers and negotiators.
Exchanges want in on that private business, and they are setting up Elite accounts for Elite investors, with minimum opening balances of Millions of $USD.
What the Exchanges want, they'll get.
Big investors want security, and the Exchanges can provide that security... for a price.
Be smart, own a hardware wallet and keep your coins off the Exchanges if you can.
If the market is doing poorly and causing you stress, stop watching your portfolio and reading news about Crypto.
Markets are designed to transfer wealth from the impatient to the patient, and the best way to be patient is to divert your attention. The crypto market won't vanish if you stop watching, so just relax and imagine how silly you will feel in a few years when your Bitcoin is worth 100 times its current value, and you didn't spend all day watching the prices go up and down.
Thanks for reading. Shares and comments are always welcome.