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What is a Crypto Whale?
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In Brief
Learn more about crypto whales, who they are and what effect they can have on the crypto market.
The vast ocean of cryptocurrency is home to a unique breed of investors – the crypto whales. These behemoths hold immense sway over the market. Crypto whales can cause ripples or tsunamis depending on their actions. Understanding who crypto whales are, and how they operate, is important for any cryptocurrency enthusiast.
Before You Get Started
Before you get started, remember that Trust Wallet lets you manage and interact with 10M+ crypto assets across 100+ blockchains. You can easily explore Web3, manage your assets, and also buy crypto seamlessly via our trusted partners.
What is a Crypto Whale?
A crypto whale is a person who, or entity that, holds a massive amount of a cryptocurrency or multiple cryptocurrencies. The exact threshold for being considered a whale isn't universally defined, but it's generally accepted that whales hold enough crypto to significantly influence its price. Some estimates suggest ownership of at least 1% of a particular cryptocurrency's circulating supply qualifies as whale territory. Other definitions of a crypto whale point to a minimum Dollar value held in a single cryptocurrency.
How Whales Shape the Crypto Landscape:
Crypto whales wield immense power owing to the sheer volume of crypto they hold. Crypto whales’ actions, whether buying, selling, or simply moving their holdings, can trigger significant price fluctuations – such as crypto market crashes or market pumps. Here's how:
Market manipulation: Whales can potentially manipulate the market by placing large buy orders, creating an illusion of high demand and driving prices upwards. Large sell orders can, similarly, trigger panic selling and send prices plummeting.
Increased volatility: The very presence of whales injects a degree of uncertainty into the market. When a whale makes a significant move, it can lead to increased volatility, making the market more susceptible to sudden price swings.
Influencing market sentiment: Whales are often closely watched by the crypto community. Whales’ actions can shape market sentiment, with a whale's large buy order being interpreted as a bullish signal, potentially leading to a surge in investor confidence.
Who are the Crypto Whales?
While the identities of most whales remain anonymous due to the pseudonymous nature of cryptocurrency, some whale wallets on prominent blockchains, like Ethereum and Bitcoin, are tracked and analyzed. Here are some popular examples:
Satoshi Nakamoto: The pseudonymous creator of Bitcoin is believed to hold around 1 million Bitcoins.
Changpeng Zhao (CZ): While the specific details of his holdings are not public knowledge, CZ is believed to have a significant amount of Bitcoin and other cryptocurrencies.
Michael Saylor: Michael Saylor is an American entrepreneur and the founder of MicroStrategy, a business intelligence company. MicroStrategy, along with Saylor himself, holds a combined total of over 17,732 Bitcoins.
Grayscale Ethereum Trust: This company is the largest holder of Ethereum, with over 3 million ETH.
Vitalik Buterin: The co-founder of Ethereum holds over 270,000 ETH across multiple addresses.
BlackRock: Via a US spot Bitcoin ETF, BlackRock holds a large amount of Bitcoin on behalf of it’s ETF holders.
Whale Watching on Twitter
Several popular Twitter accounts specialize in tracking whale movements. These accounts monitor on-chain activity and alert followers when whales make significant transactions. Here are a few notable examples:
Whale Alert (@whale_alert): This widely followed account provides real-time updates on large cryptocurrency transactions across various blockchains.
CryptoWhale (@CryptoWhale): This account focuses on Bitcoin whale movements, analyzing large BTC transactions and potential market implications.
By following these accounts, you can gain insights into whale activity and potentially use this information to inform your own investment decisions. It's important to remember, however, that whale movements are just one factor to consider. A comprehensive investment strategy should incorporate other elements like technical and fundamental analysis.
How to Buy Crypto Using Trust Wallet
You can buy crypto, including Bitcoin and Ethereum, using Trust Wallet, via our trusted partners. Here’s how:
Select “Buy” from the home screen.
If using the mobile app:
Choose your preferred currency, then enter the amount of BTC/ETH you want to purchase.
Select the third-party provider & payment method you’d like to use.
Select the Buy button and complete the remaining steps.
If using the browser extension:
Choose your preferred currency and amount, then choose Bitcoin (BTC) / Ethereum (ETH)
Select your preferred third-party provider.
Complete the remaining steps.
Closing Thoughts
Crypto whales are undeniable forces within the cryptocurrency market. Understanding their potential effect and how they operate can equip you to navigate the ever-changing crypto landscape with more informed decisions. Remember, while whale watching can be informative, it shouldn't be the sole basis for your investment strategy. Always conduct thorough research and diversify your portfolio to mitigate risk.
Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.
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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.