Crypto Whales: How to Chase and Catch Them

2021-05-24 14:16:41

Guillaume Souillard

In this article, we are going to see how to understand crypto whales and how to catch them.

The crypto world is abuzz with talk of whales. The term "whale" in the cryptocurrency space refers to an individual or institution that possesses a large holding, enough for them to have significant price power over less well-funded traders. It's no secret that these entities can have considerable influence on the market - but how does one go about catching one?

"Buy low sell high" method

There are a few ways that whales can be caught. The first, and most obvious way is the classic "buy low sell high" method. This strategy entails buying at an area where prices have dropped significantly (e.g., after a major correction) while simultaneously selling when they've rallied back to more reasonable levels.

Observe the holders

The second approach for catching crypto whales is to watch what's going on in exchanges - specifically looking for patterns or large trades coming from accounts with large holdings of tokens. These account holders may not always act rationally and trade based only on their own best interests; often times these individuals will try to manipulate the market by sending out waves of small transactions designed explicitly to create enough volume so as to affect price action across heretofore unaffected markets.

This approach is more difficult to execute, as the crypto whale can turn off trading and withdraw funds at any time in order to avoid detection. However, if you are able to identify a big trade coming from an account with tokens worth over $50 million, then this method may be worthwhile for those traders looking for high-risk opportunities - knowing that they could potentially lose all of their capital on one bad trade but also reap outsized rewards when things work out well.

Use ClankApp

The last approach is to use ClankApp. ClankApp is a great tool for identifying these types of trades, as it identifies the traders making big moves. It's support 24 blockchains, cross-exchange, real-time notifications and alerts is a major plus.

How to understand crypto whales?

If you have the resources to create your own bot or use a third-party trading algorithm, then crypto whales are not much of an issue. However, if you're just looking for low-risk arbitrage opportunities (e.g., different prices on exchanges), then it becomes more difficult as these traders can quickly push down prices by dumping large blocks of coin.

Crypto whales are a force to be reckoned with in the crypto space and keep an eye on them if you want to create your own passive income trading strategy or just stay informed about what's going on behind the scenes.


Finally, traders can combine all of these methods to track crypto whales. The key is then deciding which method will be most effective for the type of trading that they want to do. For example, if you are looking at a coin with little liquidity and low volume on an exchange but think it could have potential in the future because there's been some recent news about possible partnerships or releases coming out soon, then tracking trades from large wallets would make sense. Whereas if you're day-trading coins with high volatility and more established trading histories across many exchanges, then following ClankApp might work better since we provides real-time information detailing every trade made by any trader throughout the world.

Disclaimer: This article is for informational purposes only and you should not construe any such information as investment or other advise. ClankApp services do not engage in any trading activities. We urge everyone to do their own research and draw their own conclusions.

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* A whale is a transaction worth more than is worth more than a certain value relative to the volume of the asset.
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