by Ben Creagh
As many of you may already know, cryptocurrency has become a lucrative investment for both experienced and newbie investors.
Thanks to large investors and companies such as PayPal showing interest in Bitcoin, more and more people are getting attracted to the cryptocurrency investment option, which can be seen by the rising value of Bitcoin as well as many other cryptocurrencies. But, just like any other investment, cryptocurrency can be a lucrative opportunity only when investors do the proper research, analyze and build a strategy around their crypto investment, and most important of all, find out who the whales are in the crypto world.
Identifying the Crypto Whales
In short, in the cryptocurrency space, crypto whales are defined as the movers and shakers in the market. As in the individuals or institutions that hold the most significance and the most cryptocurrency in the market. It is no secret that these individuals or organizations have a big influence on the cryptocurrency market and are mostly responsible for the ups and downs that we see in the value of cryptocurrencies.
It should be noted that cryptocurrency has been based on the technology known as the blockchain, which is basically a decentralized platform that is able to maintain a high level of anonymity amongst its users and the rest of the world. That being said, since the public ledger on the blockchain as well as other features, cryptocurrency transactions are, for the most part, trackable.
But, the anonymity that blockchain offers allows investors to hold various crypto assets without having to reveal their identities or address to the world. This is where the concept of crypto whales comes in. According to experts, crypto whales are able to take advantage of this to yield higher profits by manipulating the cryptocurrency market discretely.
A crypto whale is any person or entity who holds a significant amount of a cryptocurrency and can use it to manipulate the market, leading to price volatility, which is something that those in the crypto space have been witnessing a lot of lately. Crypto whales tend to keep all of their crypto investments in a single paper or hard wallet to make the most impact. It is also true that crypto whales are more likely to make many smaller transactions as opposed to a single, large transaction which could look suspicious. Since the price of a cryptocurrency is mainly based on many factors, one such factor is known as supply and demand.
The actions of these crypto whales matter because their actions have a direct impact on the demand and supply of a cryptocurrency. For instance, the increase in the demand for a particular cryptocurrency will automatically increase its price and vice versa. One of the things that investors in the cryptocurrency space have to deal with on an almost daily basis is an increase in demand and reduction in supply which can drive the prices of cryptocurrencies through the roof.
Also, whenever a large portion of a cryptocurrency is in circulation, it can affect the overall price of the coins that are left in circulation. Crypto whales use various methods to cause price volatility and bump up the price of the cryptocurrency they are interested in. If you are looking to invest in cryptocurrencies, then you are going to need a platform such as the Bitcoin Evolution app where you can get all the latest news on cryptocurrency so that you can make a more informed decision.