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A whale is any individual or company who has enough money and power to directly influence the price of a cryptocurrency or stock, usually in a negative way. Think of a whale and their large mass. Large cryptocurrency holders are called whales because their movements disturb the waters that smaller fish swim in.
According to The Telegraph industry data, around 13% of all Bitcoin, or around $80 billion, sits in just over 100 individual accounts.
It added that the top 40% of all bitcoin (approximately $240 billion) is held by just under 2,500 known accounts, out of roughly 100 million in total.
Spotting a whale early could allow smaller traders to go along for the ride and profit alongside the whale as well as avoid being crushed by the whale and being left with losses.
To identify whales, you can
- Monitor the wallet addresses of the largest holders as well as exchange wallets — to stay alert of any significant shifts in cryptocurrency.
- Monitor order books. If you suddenly witness larger-than-normal buy orders, there may be a whale in play. The same, of course, goes for larger-than-usual sell orders.
- Monitor changes in market capitalization in a particular cryptocurrency that is not tied to any major project announcement or market-moving news.
- Monitoring trades on exchanges.
How do I whale watch when the order books move so quickly?
Traditionally, you will have to go on major exchanges like Binance, BitMex, Kraken, Coinbase etc. to look at the trade feed of recent large trades. Any orders that are excessively large may tell you information about how the market is moving.
It’s a very tedious and difficult process to be constantly checking the pages as sometimes the trades happen so fast that you can’t see it by eye. Most exchanges also don’t allow you to filter a live trade feed.
CoinLobster has some answers on what the smart money is doing in a simple way!
We wanted to help the small, retail traders against the world of whales and cluttered information. So we made a simple website for you to monitor the information that matters.
Our CoinLobster Whale Watching Dashboard allows you to see the live data of large trades made on major spot exchanges. The filter is at default set at a large multiple of the average trade size so you can always be aware when a whale buys or sells.
CoinLobster Whale Watching Dashboard
Live Order Book
CoinLobster’s low latency combined live order book shows all the whale trades. You can see the historical large trades in the order book as well.
We’d love to hear your thoughts on how we can make it even better! Send us a quick reply to this email or get in touch on Twitter and Discord to let us know what you think.
Forever yours,
Your trusted crypto-crustacean
CoinLobster
