In English, the word "minnow" can refer to a small fish - and a person or organization considered small or insignificant.
The same concepts apply in the world of cryptocurrencies. A minnow refers to a person who owns a relatively small amount of digital assets. This means that when they buy or sell their cryptocurrencies, it is unlikely to have a significant impact on the rest of the market.
This is in contrast to whales – a term that refers to a very small number of individuals and institutions who own large amounts of cryptocurrencies like Bitcoin. If they decide to sell their holdings, there is a very real risk that they may impact the spot prices shown on exchanges.
In rare cases, even minnows can have a significant impact. Some altcoins have incredibly low trading levels and a severe lack of liquidity, which means prices can change dramatically even after a modest sell-off.
There is no precise definition of how much cryptocurrency investment a person needs to hold in order to be considered a small fish. However, research indicates that a large number of investors fall into this category.
Although the vast majority of addresses on the Bitcoin blockchain hold less than 0.1 BTC, they collectively hold only 1% of the BTC currently in circulation.
