Crypto Whale is a term used to refer to individuals or organizations that currently hold a large amount of certain tokens. Because of their assets, Crypto Whales often have a lot of influence on the market with each of their actions.
If you are interested in the topic of Crypto Whale, why not try spending some time following upcoming content from AZcoin?
What is a Crypto Whale?
If you have ever learned or participated in the world of virtual currency, you must have heard an interesting term called Crypto Whale. This is a term used to refer to individuals or organizations holding a large amount of certain tokens, able to perform transactions with super huge values.
In other words, Crypto Whales are factors that have a great influence on the cryptocurrency market through all their trading actions. Most Crypto Whales are aware of this, so they will focus mainly on trading through OTC to minimize the impact on the market.
Other Crypto Whales will make the most of their influence on manipulating the market with their trading volume. From here, individuals and organizations specializing in observing Crypto Whales are formed to predict all of these individuals’ actions.
How does Crypto Whale affect the market?
If you wonder what an individual or organization that only owns a large number of certain tokens can do to influence the market? The answer comes from the trading actions they take, which are often super valuable.
For example, a Crypto Whale who owns a very large amount of Bitcoin and decides to sell the money he owns to the market. The above action will unintentionally cause the number of Bitcoins on the market to increase, thereby significantly losing the value of this currency.
In the opposite direction, when a Crypto Whale buys a large amount of a certain cryptocurrency, for example, Bitcoin. At this time, the number of Bitcoins on the market will decrease significantly and cause the value of Bitcoin to increase.
What is Crypto Whale Tracking?
It is because of the great impact that Crypto Whales can cause that organizations specialized in tracking their every move have been formed. The main job of these organizations is to monitor the asset value, balance fluctuations, transaction movements, etc., of Crypto Whales to predict and take corresponding actions.
Thanks to tracking Crypto Whale, many investors can avoid big risks when investing, and even earn large profits. From here, several investors were born who only focused on tracking every move of Crypto Whale to make investments.
If you want to follow Crypto Whale, you can search for related information from communities that specialize in sharing information about Crypto Whale. Besides, you can also try using tracking tools like Arkham, Glassnode,…
Besides, if you have time, we would like to suggest you check out other interesting content such as What is Dollar-Cost Averaging (DCA), What is a Market Maker, What is CBDC,…
Should you follow Crypto Whale or not?
If you want to know whether you should follow Crypto Whale, the answer is both yes and no. Yes because:
- Respond promptly to market changes from Crypto Whale.
- Limit risks or gain significant profits from Crypto Whale’s actions.
However, you should not also be too focused on tracking Crypto Whale and just blindly follow all their actions. Because investing in the cryptocurrency market always requires careful evaluation and must be steadfast in the face of all market changes.
Conclusion
Here are all the detailed contents that we can share with you about Crypto Whale. Hope you enjoy it. If you are interested in investing in the virtual currency market, please take a look at the best crypto exchange sites here.
I am Tony Vu, living in California, USA. I am currently the co-founder of AZCoin company, with many years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
