Examples of whale actions in the crypto market.
Large-scale movements of cryptocurrencies by whales generate immense interest among traders, as they often signal changes in market trends. This can lead to price increases or decreases, causing either panic or excitement.
Whales most often use major exchanges: Binance, Coinbase, or Kraken, but to conceal their actions, they may distribute funds across several addresses or use decentralized exchanges (DEX):
1. Pump and dump:
Mass buying of an asset to create artificial demand followed by a sharp sell-off to make a profit.
2. Creating volatility:
Moving large volumes of cryptocurrency between wallets or exchanges causes speculation among traders.
3. Using insider information:
Investing in projects that are not yet available to the general public.
To protect against the influence of whales, tools such as Whale Alert, Glassnode, and Santiment are used to track large transactions and help predict market changes. Retail traders need to remain calm, stick to their strategy, and not succumb to the manipulations of major players.
