When you follow cryptocurrency whales, you get a better understanding of the markets, learn when the currencys value is going down, and find out opportunities before they are gone. Making sure that you are monitoring the crypto markets and having an idea of why things are moving as they are is a better long-term strategy and it will help you to detect and avoid manipulation from the whales. Crypto whale tracking tools can flag each and every trade made by a crypto whale, as well as any big, unusual transactions that could impact a currencies value.
Because they hold such a huge number of cryptos, most crypto whales avoid trading in mainstream crypto markets, because their hefty transactions could crush liquidity in terms of volume traded. Individuals who hold large amounts of other cryptos may be referred to by the more generic term crypto whale. In other words, a whale is someone (or an entity) that has substantial amounts of cryptocurrency, or has the means to make an astronomical purchase.
While we commonly refer to an individual with wealth as a whale, the term may also describe an institution or organization holding significant amounts of cryptocurrency, and therefore having the power to move markets up or down. A Bitcoin whale is a cryptocurrency term referring to individuals or entities holding a significant number of Bitcoins. In general, a cryptocurrency whale is an entity holding enough digital currencies that they are significantly impacting the price of the market through the trading of significant amounts of coins and tokens.
Often, a whale may purchase cryptocurrency from an exchange and move it to its own wallets in high volumes. Already holding significant amounts of the cryptocurrency, the whale can put up a wall of sales in order to artificially drive down its price. For example, whales may send bitcoins into a wallet which sends back US Dollar coins (USDC), leading to the BTC being sold off, with no marketplace finding out about the transaction.
Stable currencies moving to the wallets of exchanges can signal a good investment; more volatile coins may indicate they are abandoning the cryptocurrency. This is a very simplified view of how whales influence the cryptocurrency markets, but it does show the power that they have. Large Bitcoin holders are called whales because their movements disrupt the waters in which smaller fish swim.
Even the most powerful of whales would be hard-pressed to manipulate the titanic cryptos market capitalization, making BTC, ETH, and their likes impervious to manipulation. It can be oppressive and laborious to keep up with the actions of a whale manually, even if only for one crypto or collection of NFTs. Larger players such as Falcon Global Capital (a British investment company) and CoinCapital (a cryptocurrency investment fund) also hold a significant number of a particular crypto, making them crypto whales and powerful entities within the cryptocurrency world.
