What are “Whales” in the crypto world?
In the cryptocurrency ecosystem, a whale is the term used to describe an investor or entity that holds large amounts of a specific digital asset.
Example: If someone has thousands or millions of Bitcoin (BTC), Ethereum (ETH), or another cryptocurrency, they are considered a whale.
Why are they important?
1. They influence the market:
A whale can move the price of a cryptocurrency by selling or buying large amounts.
Example: if a whale sells a lot of Bitcoin at once, the price may drop because it generates selling pressure.
2. They create volatility:
Their movements cause sharp rises or falls.
Many traders follow the wallets of whales to anticipate trends.
3. Concentration of power:
Although there are millions of users, a large part of the supply of some cryptocurrencies is in the hands of a few whales.
This can be risky because a single decision can affect the entire market.
Types of whales
1. Individual whales: People who bought cryptocurrencies early and accumulated large amounts.
2. Institutional: Investment funds, exchanges, or companies (example: MicroStrategy with Bitcoin).
3. Founders and projects: Some crypto creators hold large percentages of their tokens.
Remember that just like in the ocean, where whales are the largest animals that alter the ecosystem, in the crypto world, whales are those who dominate the market with their large movements.
Practical advice: It’s always important to monitor their movements, as they can anticipate trend changes.
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