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What Are A Crypto Whale? Everything You Need To Know About It



What Are A Crypto Whale? Everything You Need To Know About It

What Are A Crypto Whale? Everything You Need To Know About It – As we are well aware, the biggest creature in the ocean is a Whale. Similarly, the world of cryptocurrency is huge like the size of a whale.

A single wallet of cryptocurrency has almost 1000 BTC coins. The people who love to collect cryptocurrency are called crypto whales.

These whales are becoming more popular as time passes, especially Bitcoins. With the price of cryptocurrencies, Bitcoin in 2020 becomes one of the largest bitcoin transactions ever.

Crypto whale especially for bitcoin are increasing and everyone is aware of this currency. An entity that does not follow any regulation is difficult to trace its track.

Similarly, as the nature of cryptocurrency is decentralized and does not follow any regulations so it earns for itself whereas when other currencies are influenced by crypto then it would be difficult to trace its record means its expected value in the trading market.

Advantage of using crypto via Whales like traders

Generally, the sale order of the books is always smaller than other sale orders present in the market. And with the decreasing cost, the volatility of the market becomes unexpected.

The stability of the market will remain constant when the big whale traders stop buying cryptocurrency in large amounts.

As a result, the prices as per the plan of the whales were fixed, and they have to further add more coins to their fixed target price.

This outcome is called the “sale wall”. As it is not possible to trace the cryptocurrency hence it can be possible to identify the number of people who become the owner of those coins by looking at blockchain data publicly.

Some of them become Bitcoin whales. The dream of the founder of Bitcoin Satoshi Nakamoto was to earn 1 million Bitcoins.

Importance of these whales

The value of cryptocurrency varies according to the demand and supply of the cryptocurrency in the market.

When the fraction of cryptocurrency is kept out of circulation, it makes a steep rise in the crypto prices.

As a result, when a large amount of cryptocurrency is abruptly wound up, its value will crash accordingly.

Resulting that the whales of the crypto world can manipulate the cryptocurrency market as per their requirement and their advantage.

In case, the whale trader wants to purchase many more coins but at lower prices. Then they will sell out a significant amount of their assets.

Accordingly, the market will have to face more burden in that case and a fire sale will be executed and ultimately the liquidity value of the coin will increase but at low prices. As a result, they can further buy the coins as well as others at a lower cost.

Ultimately the traders can keep the coins that they purchased at lower prices and reserve the supply of those coins. And wait for the time when the prices of the coins will further increase to earn the benefits from them.

Necessity of Whale Watching

If the question is whether it is necessary to go Whale watching, then the answer might be no for an individual.

At the end of the day, the crypto whale will have a better interest in their coins to raise the value of the coin unless the whales planned to completely withdraw from the market for some reason.

It is very necessary to keep an eye on the market bitcoin price value to avoid the whale manipulation of Bitcoins prices. This would help you to maintain a stable bitcoin price in the crypto market as a long-term strategy.

On the other side, you have to plan for when you want to take an exit from the digital market or to avail a minimum profit from crypto and keep sticking to it to avoid any mistake in long-term investment.

In short, to avoid huge losses and in terms of safety, you should stick to crypto value for a long time.

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