What are Crypto Whales, and How do we Trade with them?

In the decentralized finance sector, crypto whales are big investors in the crypto market. These can be individuals, companies, institutions, and other associations. Likewise, it must be taken into consideration that they can be completely public and anonymous.

The purpose of these whales is to use their own financial power, that is, their great investment capacity to influence the market in their favor, and thus obtain the maximum monetary returns.

This large amount of investment can occur in any digital asset, but in the crypto-cosmo, the most common is that it is oriented to buy bitcoin in India.

It should be noted that since the crypto market is such a young and still developing sector of the economy, it makes it vulnerable to this type of manipulative movement.

The exact figure that allows this type of manipulative movement called a crypto whale to be effective has not currently been determined. However, the Whale-alert portal, a site specialized in monitoring the movements of this phenomenon, determines that the minimum invested BTC should be 1000 units.

This market manipulation works in the following way – when the market is down, the whales invest large amounts of money, consequently, the crypto market is driven higher. Then, many medium or smaller investors may think that it is a rally that will continue to grow, in fact, this phenomenon also occurs, since it inspires many experienced and novice investors to buy cryptocurrency in India. This favors the whale even more because it allows him to get fat and accumulate more profits.

This is how the scenario is served for these great whales to make their withdrawal from the investment, just at the most bullish moment to obtain the highest possible percentage of profits.

Once these whales make this move, they only have to wait for the crypto market to go down as low as possible to re-invest. This cycle is repeated, and since the whale does not necessarily invest instantly in the fall, they look for the most strategic period to get into the market again.

If you are a medium or small investor, you must learn to move within this investment circle promoted by not just one, but numerous whales in the cryptocurrency market.

Why are they called whales?

The name is allegorical to the whales of the ocean. The ocean in this scenario is the crypto market, and that is made up of many other small and medium-sized investors/traders, who at the same time must know how to adapt, live and take advantage of the situation with the whales.

The allegory does not stop here, as it is in fact more specific with the powerful movements that wild whales make as they rise to the surface of the ocean.

When these large investors buy bitcoin in India, or elsewhere in the world, it is when these large mammals are propelled towards the surface of the sea, even jumping many meters. But when they sell their assets, it refers to the fall of the big whales into the sea, dragging all the other small or medium fish to the bottom of the ocean. This game of the animal kingdom perfectly describes the dynamics of the crypto market.

So how can you use the crypto whales’ moves to your advantage?

For this, the first thing you should take into consideration is that there are two key tools called: fundamental analysis and technical analysis.

Both types of analysis are important, the fundamental one because it will allow you to identify the whales and all their qualitative and quantitative characteristics, as well as the historical times in which the most popular and well-known whales have made their financial movements.

In parallel, technical analysis is also essential since it allows you to collect exact data and statistics of the historical behavior of a cryptocurrency or other asset. It also allows you to detect the movement capacity of each whale, its periodicity, among other numerical and technical factors that allow you to get as close as possible to the movements in time, buying and selling of each of these public whales.

The Essential

To make your move during cryptocurrency trading as strategic as possible in the face of large whale movements, you must learn to anticipate each whale movement.

The basic thing is that when the crypto-market is in the red, it is the moment in which one of these great whales approaches to invest. If you manage to make your investment before the entrance of a whale to the surface, you will obtain a high-profit margin.

In the same way, when the crypto-market has accumulated enough in the green and has remained in that status long enough, be sure to make your withdrawal before the whale falls back into the sea (make the financial withdrawal at a certain time). For example, you can go from bitcoin to INR, and then when you buy bitcoin in India again, you can convert back from INR to bitcoin. This way, medium or small investors will be able to capitalize on the market movements.

In India, there are many P2P exchanges that provide you with the option to convert from BTC to INR, or from INR to bitcoin instantly, thanks to an integrated fiat INR wallet service.

Unfortunately, after all the “regulatory” issue that India has had regarding the issue of cryptocurrencies, it has caused almost all Exchange P2P companies to stop said service.

However, be rest assured that there is still a P2P exchange in India with an integrated fiat INR wallet, which will allow you to realize your earnings from whale movements, from bitcoin to INR, or even from bitcoin to USD if you prefer.

This Exchange is Remitano, a platform that provides a fiat INR wallet, which will allow you to make conversions from INR to bitcoin and from bitcoin to INR, in just seconds and with a very low commission of only 1%. 

Returning to the theme of whales, remember that there are public and anonymous whales. With the latter, there is not much we can do to predict or anticipate their movements, but we must take advantage of our knowledge to fundamentally and technically analyze public whales to get better returns.

Examples of public whales

• Pantera Capital
• Coin Capital Partners
• Falcon Global Capital

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