A crypto whale is a person, entity, or blockchain wallet that holds an extremely large amount of cryptocurrency. They are also referred to as “whales” in the crypto community.
Crypto whales are individuals or organizations that own large amounts of a specific cryptocurrency and generally hold enough digital currency to significantly influence market prices by trading significant amounts of coins and tokens. The size of the holding has to be large enough to cause a ripple effect on the price of the coin or NFT if the holder sells it all at once.
The actions of crypto whales are closely watched by investors because they can significantly influence price movements. Some well-known crypto holders with large amounts of cryptocurrency are Sam Bankman-Fried, Micheal Saylor, and Brian Armstrong. Whales can manipulate the market with their massive wealth, and their large wallets can single-handedly change the value of cryptocurrencies with their actions.
Identifying a crypto whale enables average users to watch their movement on the market while trying to predict the whale’s next action plan, which allows the user to make money while avoiding potential losses. However, it can be risky to rely on whale activity to make trading decisions.