“Trading whales” is a term used in the financial markets, especially in the world of cryptocurrencies, to refer to individuals or institutions that own very large amounts of a particular asset (such as Bitcoin or Ethereum) and have the ability to influence the market through their trading decisions.
Characteristics of trading whales:
1. Large amount of assets: They own huge amounts of assets, which makes them able to influence supply and demand.
2. Ability to move the market: Their huge trades can lead to huge price fluctuations.
3. Market manipulation: Sometimes, they may use strategies such as “pump and dump” to drive up prices and then sell large quantities, causing the price to suddenly drop.
4. Lack of transparency: Their activities are often unknown to the general trading public, raising concerns about manipulation.
Impact on the market:
Positive: They may support price stability in some cases by not selling their assets in large quantities.
Negative: Sudden market fluctuations may cause losses for small traders.
How do you protect yourself from their influence?
1. Risk Management: Avoid putting all your investments in one asset.
2. Close monitoring of the market: Watch for big moves in large portfolios, which are shown on analysis platforms like Glassnode.
3. Avoid panic: Big moves may be temporary, so don't make emotional decisions.
