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What Is A Crypto Whale & Why Do They Matter

What Is A Crypto Whale & Why Do They Matter? 

Whales are the largest animals (yup! Even larger than dinosaurs) that have ever existed on the planet. Some of the most ferocious beings, whales, rule the oceans. But what about whales in crypto? Does the term have a similar connotation? Or do whales in crypto carries a more figurative meaning? Let’s find out what are whales in crypto. 

The crypto world also has an entity called the crypto whale. These entities are called ‘whales’ because of the size of their asset holdings. We can use the term ‘crypto whale’ for an entity that possesses a large number of cryptocurrencies, either in one wallet or multiple. Even though the measures used to describe a crypto whale are arbitrary, the impact of their actions is huge on the crypto market. Here, we will be talking about who and what is a crypto whale and its importance in the crypto world. 

What Is A Crypto Whale? 

When it comes to the topic of whales in crypto, anonymity provides a protective shield to them. Crypto whales are entities that have crypto asset holdings larger than $10 million that may be spread across various cryptocurrencies or one. There is no significant limitation to having just one asset or multiple cryptocurrency investments. Since the amount of crypto assets handled by the entity is huge, no average person can be called a crypto whale. The anonymity accorded by blockchain networks also makes it hard for anyone to figure out who the whale is, let alone what plans they have for the future. Their actions in the crypto world largely impact the market performance, and we are obviously curious to learn more about ‘what is whales n crypto’ – a popular google search these days. 

Some of the known crypto whales include names like Elon Musk of Tesla, Michel Saylor of MicroStrategy, Brian Armstrong of Coinbase, etc. 

Why Is Crypto Whale Important? 

To understand the importance of crypto whales, we need to have a deeper understanding of the crypto market. Even though more and more retail investors are coming in, the crypto market is still hugely impacted by the actions of the whales. It is important to monitor the market moves of crypto whales as their actions can cause increased liquidity in the market or, suddenly, a reduction in the trade volumes. They are significant because following whales’ profitable moves can also prove to be great for other investors. They can orchestrate a crash or bull run with a dump or squeeze at their convenience. 

How To Become A Crypto Whale?

How To Become A Crypto Whale
Source: AMBCcrypto / Chart indicating whale movement and price pattern

When you are asked, what are whales in crypto, you cannot answer it without relating it to the huge investments that they have made. Thus, to become a crypto whale, you will have to start accumulating crypto assets and increasing your holdings. Either you have to be extremely rich to acquire large quantities in one go, or you can keep investing in the assets, and with time your holdings will make you a crypto whale. Taking the benefit of market crashes and buying the dip can be a resourceful move towards becoming a crypto whale. 

Why Do Crypto Whales Matter And How Do They Manipulate Crypto? 

The biggest reason why crypto whales matter so much is that they make the market move on their profit terms. You can understand the control of crypto whales in the market by studying their investing pattern and the currency price chart. Thus, if a whale wishes to buy crypto at a low price, it will dump large quantities in the market. They manipulate the market by increasing or decreasing the volume of currencies in the market. They have immense control over the crypto market, and thus assessing your moves based on careful inspection of whale patterns is important. 

Conclusion 

As an investor, it is best always to be aware of the market movements of crypto whales. Here, we have tried to explain completely what is a crypto whale and how much of an influence they have over the market. Thus, it is up to the investors to assess the market situation and understand how the whales can bring about a bull or bear run. Crypto whales have holdings of over millions of dollars, and thus they have the power to control the crypto market freely. 

Frequently Asked Questions (FAQs)

1. Did All The Whales Sell Off During The Recent Market Crash? 

Crypto whales like Tesla, Celsius, Voyager, etc., had sold their holdings during the recent market crash. Even the ‘Bitcoin Jesus’ Roger Ver had sold his holdings during the bear run. It all happened due to the sudden declining momentum in the market. However, some whales, such as MicroStrategy, kept accumulating more currencies at low prices. MicroStrategy recently sold its stocks to acquire $500 million worth of BTC. 

2. Do I Have A Chance Against Crypto Whales?

The crypto market is all a game of demand and supply. You wouldn’t want to be the one standing against the wind. Thus, it is not the best decision to stand against the whales and sell while the market is longing and long while the whales dump their holdings.

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