What is Whale Watching?
In the context of crypto, “Whale Watching” refers to the practise of monitoring the movements and trades of large cryptocurrency holders known as “whales.” These “whales” are individuals or organisations that own massive amounts of a certain cryptocurrency, and their trades can have a big influence on the cryptocurrency’s price.
Crypto whales have influenced the prices of top cryptocurrencies, including Bitcoin. E.g., if a whale is spotted selling a huge quantity of a certain cryptocurrency, it can be interpreted as a warning that the price is going to tumble, and other investors may opt to sell their own holdings too.
On the other hand, if a whale is spotted purchasing a huge amount of a cryptocurrency, it can be interpreted as a sign of confidence in the asset, and may result in price increase.
Hence, retail investors monitor crypto whales and stay aware of any major changes in their crypto wallets in order to update their investment strategy accordingly.
In short, investors and traders watch whales in order to get insight into market movements and perhaps profit from their trades.
However, it’s crucial to understand that whale watching is only one aspect that might affect the price of a cryptocurrency. Investors should not rely only on this factor when taking any investment decisions. It’s also important to note that whales have their own objectives and motives for trading, and it’s not always easy to forecast their moves or the influence they’ll have on the market.
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How to “Watch Whales”?
There are some special crypto sites that offer Crypto Whale tracking and “watching” services with various metrics to assist smaller investors.
Crypto enthusiasts and investors can avail free services from companies such as Whale Alert, which offers dynamic alerts and tracking for a variety of cryptocurrencies. Followers of @whale_alert on Twitter can expect timely alerts whenever a crypto whale makes a move in the crypto market.
Whale Alert, which has over a million followers on social media, employs bots to provide real-time transaction alerts for traders and investors. Other than this, there are plenty of whale-watching sites to help you out.
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