Think of the cryptocurrency market as an ocean filled with small fish that drift here and there and occasionally wreak havoc. But in this ocean there are much bigger players - huge whales, capable of changing everything with a flick of a fin. Who are these "cryptokites" and why is there so much noise around them? Let's talk about them in a way that even your cat will understand!
Cryptokit: who is it?
A cryptokit is a person or group of people who owns a large amount of cryptocurrency, usually more than 1,000 $BTC or an equivalent amount of another currency. These whales have such a large influence on the market that they can significantly affect the price of the currency - they buy or sell their assets in such volumes that the market "trembles" from the waves.
How whales are changing the sea of cryptocurrencies?
Whales can influence the market in two main ways:
1. Buying or selling: When a whale decides to sell a large number of coins, it can cause the price to drop. Conversely, when they buy assets, the price rises.
2. Manipulation and psychology: Whales can "game" the market. For example, they can suddenly sell part of the assets, which will cause panic among investors. When the price falls due to a massive sell-off, the whales buy up the assets again at a lower price. Thus, they literally "play" with less experienced investors!
How to recognize a whale?
Spotting whales is not that difficult if you know where to look. There are special services that track large transactions moving between wallets, on exchanges, or outside of them. For example, Whale Alert is one such popular service that tracks large transfers of Bitcoin and other cryptocurrencies and even issues alerts for large asset movements.
Why are whales important to the market?
Cryptokits perform an extremely important role in the ecosystem, despite the fact that they sometimes cause unpredictable situations in the market. First, they attract new investors, creating a lot of volatility and therefore opportunities for profit. Second, their actions may indicate general trends felt in the crypto industry.
Now that you know who crypto whales are, you can safely look at their activities and understand that this is not just a random movement - it is a big move that can bring you closer to becoming a great swimmer in the ocean of cryptocurrencies!
Always remember to DYOR or do your own research!
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