What are Whales in cryptocurrencies?
A crypto whale is an individual or entity that owns a large amount of cryptocurrency. The term "whale" is used because these people or entities have so much cryptocurrency that they can move the market by buying or selling large amounts.
There is no set definition of what constitutes a crypto whale. However, most experts agree that a whale is someone who owns at least 1% of the total supply of a particular cryptocurrency. For example, if there are 100 million Bitcoins in circulation, a whale would be someone who owns at least 1 million Bitcoins.
Crypto whales can have a significant impact on the market. When they buy or sell large amounts of cryptocurrency, it can cause the price to go up or down. This can be beneficial for the whales, who can make a lot of money by buying low and selling high. However, it can also be detrimental to other investors, who may lose money if the price of a cryptocurrency falls.
There are a number of reasons why people become crypto whales. Some whales are early adopters of cryptocurrency and bought a lot of it when it was cheap. Others are miners who have made a lot of cryptocurrency by mining it. Others are investors who have bought large amounts of cryptocurrency in the hope that it will increase in value in the future.
No matter how they become whales, crypto whales have a significant impact on the market. It is important that investors are aware of their activity and make informed decisions about when to buy and sell cryptocurrencies.
