{"id":17550,"date":"2022-05-31T18:18:39","date_gmt":"2022-05-31T12:48:39","guid":{"rendered":"https:\/\/zebpay.com\/?p=15194"},"modified":"2022-08-10T09:56:17","modified_gmt":"2022-08-10T09:56:17","slug":"whales-in-crypto-detailed-explanation","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/whales-in-crypto-detailed-explanation","title":{"rendered":"Whales in Crypto: Detailed Explanation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/whales-in-crypto-detailed-explanation\/#What_Are_Crypto_Whales_A_Perspective\" title=\"What Are Crypto Whales?: A Perspective\">What Are Crypto Whales?: A Perspective<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/whales-in-crypto-detailed-explanation\/#How_Do_Whales_Affect_the_Market\" title=\"How Do Whales Affect the Market?\">How Do Whales Affect the Market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/whales-in-crypto-detailed-explanation\/#How_Can_Investors_Be_Safe\" title=\"How Can Investors Be Safe?\">How Can Investors Be Safe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/whales-in-crypto-detailed-explanation\/#Wrapping_up\" title=\"Wrapping up\">Wrapping up<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Whales in crypto terminology are individuals or institutions holding large swathes of coins of a certain crypto asset. This triggers panic in the markets with prices falling freely. So, watch out for such Crypto Whales, if you want to keep your investments safe and predict the next such movements sooner than later. Now let\u2019s get straight into What are Crypto Whales?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-crypto-whales-a-perspective\"><span class=\"ez-toc-section\" id=\"What_Are_Crypto_Whales_A_Perspective\"><\/span>What Are Crypto Whales?: A Perspective<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An investor with more than 1,000 Bitcoins is usually called a Bitcoin Whale. In essence, any<br>person who has enough coins or tokens in their wallets to significantly influence the market<br>prices can be characterised as a crypto whale. It is said that whales account for more than<br>10% of the total crypto supply.<\/p>\n\n\n\n<p>Moreover, whales usually make a significant impact on the market prices by either selling or<br>buying large amounts of <a href=\"https:\/\/zebpay.com\/in\/blog\/tokens-vs-coins\/\" target=\"_blank\" rel=\"noreferrer noopener\">tokens or coins<\/a>.<\/p>\n\n\n\n<p>Additionally, crypto whales don\u2019t have to be individuals alone: Whales can also be an<br>institution or an organisation that holds a significant amount of crypto assets to such an<br>extent that they wield considerable power and influence on the markets.<\/p>\n\n\n\n<p>Crypto Whales usually buy and sell crypto tokens or coins using Over the Counter (OTC)<br>trading and keep their transactions off the books. This helps them to not overwhelm the<br>market with their large volume of orders.<\/p>\n\n\n\n<p>Further, whales can buy a significant portion of a particular crypto token and take over the<br>on-chain governance processes of the platform as well. This would ultimately give them<br>more voting power and they will be in a position to dictate the direction a particular token<br>should take.<\/p>\n\n\n\n<p>Read About: <a href=\"https:\/\/zebpay.com\/in\/blog\/which-is-the-next-crypto-asset-to-explode-in-2022\/\" target=\"_blank\" rel=\"noreferrer noopener\">Which is the Next Big Crypto-Asset to Explode in 2022<\/a><\/p>\n\n\n\n<p>This has its advantages as well as drawbacks.. On one side, the whales bring stability which<br>is a good sign and shows a stake to help the system grow. On the other side, the existence<br>of a whale on a network can be a negative sign of power centralisation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Do_Whales_Affect_the_Market\"><\/span>How Do Whales Affect the Market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before we get into how whales can impact the market, there is another crucial point to make.<br>Whales can buy a significant portion of a particular crypto token and take over the on-chain<br>governance processes of the platform. This would ultimately give them more voting power to<br>dictate the direction a particular token takes.<\/p>\n\n\n\n<p>Needless to say, there are two sides to this coin. On one side, the whales bring stability<br>which is a good sign and shows a stake to help the system grow. On the other side, the<br>existence of a whale on a network can be a negative sign of power centralization.<\/p>\n\n\n\n<p>Here is how whales affect the markets:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul><li><strong>Market Liquidity:<\/strong> Due to the nature of crypto whales, their crypto wallets usually hold large amounts of crypto assets. When whales store a huge amount of crypto assets in their wallet, it reduces the overall liquidity of that particular asset. This happens because the number of circulating cryptos reduces, leaving lesser coins to trade and invest in.<\/li><\/ul>\n\n\n\n<ul><li><strong>Effect on Price:<\/strong> Whales in crypto can create strong price volatility while transacting large quantities of cryptos in a single transaction. For instance, let\u2019s say a whale tried to sell Ethereum after having accumulated large amounts of it. Since the liquidity is already low. Selling off large amounts of Ethereum would result in a download pressure on Ethereum\u2019s price. When whales dump their money, other retail investors also follow suit, in order to cut losses.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Can_Investors_Be_Safe\"><\/span>How Can Investors Be Safe?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In order to be safe investors should be on the lookout for crypto whales. Investors can do<br>this by following whale alert sources maintained by the crypto community and investors.<br>These sources are public and alert users. Accordingly, the two main sources The two<br>sources are:<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/whale-alert.io\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">A website<\/a> that alerts investors when a whale makes a transaction<\/li><li><a href=\"https:\/\/twitter.com\/whale_alert?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">A Twitter<\/a> account that sends alerts along with details of the sender and the receiver.<\/li><\/ul>\n\n\n\n<p>Moreover, investors can also keep an eye on the average amount of a specific crypto asset<br>deposited into exchanges. Unusual activities can be flagged as a whale activity in instances<br>where the mean coins per transaction rise a lot. Higher mean coins per transaction imply<br>that more coins have started being traded. This could hint at the movement of a whale.<\/p>\n\n\n\n<p>However, these movements do not always have to set panic in your heart. At times a<br>whale could just be changed must be merely changing its wallet or exchange or even<br>making a large purchase. Furthermore, in order to avoid attention, sometimes whales try<br>to sell off their holdings in smaller amounts over a longer period to not draw attention.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wrapping_up\"><\/span>Wrapping up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As we\u2019ve discussed, crypto whales are individuals or entities whose crypto wallet address<br>has a significant number of <a href=\"https:\/\/zebpay.com\/in\/buy-cryptos\/\" target=\"_blank\" rel=\"noreferrer noopener\">crypto assets<\/a>. These whales can influence the market price<br>movements and liquidity for a particular crypto asset.<\/p>\n\n\n\n<p>Nonetheless, investors can use some techniques to follow whales and save themselves from<br>the movements of whales. However, many times these movements need not set in panic.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whales in crypto terminology are individuals or institutions holding large swathes of coins of a certain crypto asset. This triggers panic in the markets with prices falling freely. So, watch out for such Crypto Whales, if you want to keep your investments safe and predict the next such movements sooner than later. Now let\u2019s get [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17550"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=17550"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17550\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/17444"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=17550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=17550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=17550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}